Illinois property tax exemptions lower what you owe by reducing your home’s equalized assessed value (EAV), the figure your county multiplies by the local tax rate to calculate your bill. Most exemptions are filed through your county assessor’s office, several can be stacked on the same home, and one separate program lets qualifying seniors defer their taxes entirely. Which ones you can claim depends on age, disability, veteran status, income, and whether the home is your primary residence.
How the Math Works
Every exemption reduces your EAV by a set dollar amount. Your actual savings equal that reduction multiplied by your local tax rate. A $10,000 EAV reduction saves $800 where the rate is 8% and $600 where the rate is 6%. Because rates vary widely across Illinois, two homeowners with the same exemptions can see very different dollar savings depending on where they live.
General Homestead Exemption
This is the broadest exemption and the one most owner-occupants qualify for. If you own and live in your home as your primary residence, the exemption reduces your EAV by the amount it has risen above the property’s 1977 EAV, capped by county:
- Cook County: up to $10,000
- Counties bordering Cook County: up to $8,000
- All other counties: up to $6,000
The three-tier structure took effect for the 2023 tax year under Public Act 102-0895. Before that, counties bordering Cook followed the same $6,000 cap as the rest of the state.1Illinois General Assembly. Illinois Compiled Statutes 35 ILCS 200/15-175 – General Homestead Exemption Some counties apply it automatically once you establish ownership and occupancy; others require a one-time application with the chief county assessment office.2Illinois Department of Revenue. Property Tax Relief – Homestead Exemptions
Senior Citizens Homestead Exemption
Homeowners 65 or older who own and occupy the property as their primary residence can claim this exemption on top of the General Homestead Exemption. The additional EAV reduction is up to $8,000 in Cook County and its bordering counties, or $5,000 elsewhere.3Illinois General Assembly. Public Act 102-0895
In Cook County, approved seniors are automatically renewed and only need to notify the assessor if they move or otherwise stop qualifying.4Cook County Assessor’s Office. Senior Exemption Many other counties have eliminated the annual reapplication too, but some still require it. Confirm with your local assessor.
Senior Citizens Assessment Freeze
This is a separate program from the flat senior exemption, and you can receive both. Instead of shaving a dollar amount off your EAV, the freeze locks your EAV at a base-year level so rising property values do not push your taxes higher over time.
To qualify, you must be 65 or older, own and occupy the property as your primary residence, and have total household income at or below the statutory limit. For the 2026 tax year, that limit is $75,000. The threshold has climbed in recent years, so if you were shut out before, check again. You apply with Form PTAX-340 through your county assessor, and because income has to be verified, you have to reapply every year.2Illinois Department of Revenue. Property Tax Relief – Homestead Exemptions
Disabled Persons’ Homestead Exemption
Homeowners with a disability who own and occupy their home receive a $2,000 annual EAV reduction. You file Form PTAX-343 with proof of disability, which can be a Social Security Administration award letter, a benefits verification letter, or a physician’s certification on Form PTAX-343-A.2Illinois Department of Revenue. Property Tax Relief – Homestead Exemptions
Recent state legislation ended annual reapplication for people already approved. If you received the exemption in a prior year, it renews automatically. Only first-time applicants need to submit new paperwork.5Cook County Assessor’s Office. Persons with Disabilities Exemption
Exemptions for Veterans
Illinois has several veteran-specific programs, and they are among the most generous in the state. A qualifying veteran can end up fully exempt from property taxes.
Standard Homestead Exemption for Veterans with Disabilities
Veterans with a service-connected VA disability rating receive an EAV reduction scaled to the severity of the disability:
- 30% to 49% disability: $2,500 annual EAV reduction
- 50% to 69% disability: $5,000 annual EAV reduction
- 70% or higher disability: the first $250,000 of EAV is fully exempt
Veterans rated 100% permanent and total no longer need to reapply annually. All others must file each year with current VA documentation. Beginning with the 2024 tax year, World War II veterans are fully exempt from property taxes regardless of disability rating.6Illinois General Assembly. Illinois Compiled Statutes 35 ILCS 200/15-169 – Standard Homestead Exemption for Veterans with Disabilities
Surviving Spouses
The surviving spouse of a veteran whose death was determined to be service-connected, and who receives dependency and indemnity compensation from the VA, qualifies for a full property tax exemption under the same statute. The benefit applies beginning with the 2023 tax year.3Illinois General Assembly. Public Act 102-0895 Surviving spouses must file for the exemption each year.7Illinois Department of Revenue. Information About Property Tax Relief for Veterans and Persons with Disabilities
Returning Veterans’ Homestead Exemption
A veteran returning from active duty in an armed conflict receives a $5,000 EAV reduction covering the tax year of return and the following tax year. If the veteran bought a home after January 1 of the year they returned, the exemption can be applied to the next tax year instead.8Justia. Illinois Compiled Statutes 35 ILCS 200 Title 4 – Exemptions
Homestead Improvement Exemption
Remodel, add a room, or rebuild after a disaster, and the resulting jump in assessed value can be partially sheltered for four years. The exemption covers added fair cash value from qualifying improvements up to $75,000 (equivalent to $25,000 in assessed value at the one-third assessment ratio) and runs for four years from the date the improvement is completed and occupied.2Illinois Department of Revenue. Property Tax Relief – Homestead Exemptions
Routine maintenance and repairs do not qualify. The improvement must add new value, like a kitchen renovation, an addition, or reconstruction after fire or storm damage. Some counties apply this exemption automatically; others require an application.
Senior Citizens Real Estate Tax Deferral
This program works differently from every exemption above. Rather than lowering your taxable value, it lets qualifying seniors defer all or part of their property tax payments. The state pays the taxes for you, a lien is placed on the property, and the deferred amount plus interest is repaid when the home is sold or transferred.
You must be 65 or older by June 1 of the deferral year with household income no higher than $77,000 for the 2026 tax year. Interest on deferred taxes accrues at 3% per year for the 2023 tax year and later, down from the 6% rate that applied before 2023.9Illinois General Assembly. 320 ILCS 30 – Senior Citizens Real Estate Tax Deferral Act
If you sell, the deferred taxes and accumulated interest must be paid at closing; no sale can legally close and be recorded until that balance is settled. If the homeowner dies, a surviving spouse can continue the deferral if the spouse is at least 55 and enters a new deferral agreement. Otherwise, heirs have the first right to keep the property by paying off the full deferred balance.9Illinois General Assembly. 320 ILCS 30 – Senior Citizens Real Estate Tax Deferral Act
The deferral is a genuine option for seniors who are house-rich and income-poor, but the lien can surprise families. Heirs expecting a home free and clear need to know about any deferred balance well before that day arrives.
Where and When To File
Applications go to your local chief county assessment office. In Cook County, the filing period for tax year 2025 exemptions opened on March 9, 2026.10Cook County Assessor’s Office. Property Tax Exemptions Deadlines and procedures vary by county and by program, so contacting your assessor’s office early in the year is the safest approach.
For the General Homestead Exemption, many counties apply it automatically once ownership and residency are established; others require a one-time application. The Senior Citizens Assessment Freeze requires an annual filing because income has to be verified each year. Veteran exemptions generally require annual applications with current VA documentation, except for veterans rated 100% permanent and total.
Miss a deadline and you lose the exemption for that tax year. Illinois does not grant exemptions retroactively, and you cannot go back and claim a prior year’s exemption you failed to file for. That is why tracking filing windows matters.
If You Are Denied or Over-Assessed
If your assessed value looks too high, or an exemption was wrongly denied, your first step is a written appeal to your county Board of Review. Filing there is a legal prerequisite before you can take the dispute anywhere else.11Illinois Department of Revenue. Assessment Appeals – Property Tax You file using Form PTAX-230 and submit evidence, such as a recent appraisal, comparable sales, or documentation of errors in the property description like incorrect square footage.12Cook County Board of Review. Assessment Appeals
If the Board of Review rules against you, you can appeal to the Illinois Property Tax Appeal Board (PTAB) or file a tax objection complaint in circuit court. A PTAB petition must be filed within 30 days of the Board of Review’s written decision. To challenge a PTAB ruling in circuit court on assessment changes under $300,000, you have 35 days from the date the decision was served.13Property Tax Appeal Board. Practice and Procedures These deadlines are firm; missing them ends the appeal.
How an Exemption Affects Your Mortgage Escrow
If you pay property taxes through a mortgage escrow account, an exemption does not automatically shrink your monthly payment right away. The servicer collects estimated tax payments each month and disburses them to the county when taxes come due. When an exemption reduces your bill, the servicer has been collecting more than needed.
Federal rules require your servicer to run an annual escrow analysis. If the servicer already knows your taxes will be lower the following year because of an exemption, it must use that lower figure in calculating your payments.14Consumer Financial Protection Bureau. 12 CFR Part 1024 Regulation X – Escrow Accounts If the analysis shows a surplus of $50 or more, the servicer must refund it to you within 30 days. Surpluses under $50 may be credited against future escrow payments instead.15eCFR. 12 CFR 1024.17 – Escrow Accounts
In practice the adjustment often takes one full escrow cycle. Sending your servicer a copy of your updated tax bill showing the exemption can speed things up, since the servicer is required to use known charges when recalculating payments.