Owning a home is a significant financial commitment, and property taxes can be a substantial part of that burden. However, if you're a homeowner in Cook County, Illinois, you may be eligible for various tax exemptions to ease this financial load. In this blog, we'll explore the different homeowner exemptions available in Cook County and how you can take advantage of them.
What Are Homeowner Exemptions?
Homeowner exemptions are tax breaks provided to property owners who meet specific criteria. These exemptions can reduce your property's Equalized Assessed Value (EAV), ultimately lowering your tax bill. In Cook County, several types of homeowner exemptions include:
- The homeowner exemption
- Senior citizen exemption
- Senior citizen assessment freeze exemption
- Home improvement exemption
- Disabled veteran exemption
The Homeowner Exemption in Cook County
You may qualify for the homeowner exemption if your property is your primary residence. Depending on local tax rates and assessment increases, this exemption can save you between $250 to $2,000 per year. The exemption lowers your property's EAV by $10,000 annually. Individuals applying for the first time are required to reside in the property as their primary residence starting from January 1 of the relevant tax year. If a property hasn't changed hands in the past year, the Cook County Assessor's Office will automatically renew this exemption.
Senior Citizen Exemptions
Seniors can benefit from two types of exemptions:
- Senior Citizen Exemption: This exemption allows seniors to save up to $250 per year and up to $750 when combined with the Homeowner Exemption. To qualify, you must be 65 years or older and have a household income of less than $65,000 yearly.
- Senior Citizen Assessment Freeze Exemption: This exemption freezes the assessed value of your property, potentially leading to minimal or even decreasing taxes over time. To qualify, you need to both own and live in the property on certain specified dates, and you must also bear financial responsibility for the property.
Home Improvement Exemption
If you've made up to $75,000 worth of improvements to your property, you won't see an increase in your property taxes for at least four years. The value of this exemption varies depending on your property's location and the reduction in the assessed value.
Disabled Veteran Exemption
The disabled veteran exemption is for veterans with disabilities that are directly related to their military service. The exemption level depends on the degree of disability, as certified by the U.S. Department of Veterans Affairs. In some cases, veterans with a disability rating of 70% or higher may be eligible for complete property tax exemption. To qualify, the property must be the veteran's primary residence, and the veteran must be the owner or hold a legal or equitable interest.
How to Apply for Tax Exemptions in Cook County
Applications and additional information can be found on the Cook County Assessor's website. Some exemptions, like the homeowner and senior citizen exemptions, are auto-renewed under certain conditions.
Contact Our Schaumburg Attorneys for Help with Property Tax Law
For personalized advice tailored to your situation, please consult with the Law Offices of Robert M. Kaplan, P.C. We're here to guide you through the complexities of property tax law in Cook County.