Illinois property taxes rank among the highest in the country — but the state also offers a robust set of homestead exemptions that can meaningfully reduce your annual tax bill. If you own a home in Illinois and haven’t applied for every exemption you qualify for, you’re almost certainly overpaying.
This guide breaks down every major Illinois homestead exemption, who qualifies, how much you can save, and exactly how to apply — whether you’re in Cook County, Will County, or anywhere else in the state.
How Illinois Property Taxes Work (Quick Overview)
Illinois property taxes are based on the assessed value of your property — not the market value. Most counties assess residential property at 33.33% of market value. Cook County uses a different tiered system, assessing residential property at 10% of market value. Local tax rates (expressed as a percentage of assessed value) are then applied to calculate your bill.
Homestead exemptions work by reducing your assessed value before the tax rate is applied. The larger the exemption, the lower your taxable base, and the lower your final bill. Some exemptions are fixed dollar amounts; others are percentage-based or calculated annually.
General Homestead Exemption (GHE)
The General Homestead Exemption is the baseline exemption available to all Illinois homeowners who occupy their property as their primary residence. It reduces the equalized assessed value (EAV) of your home by $6,000 in Cook County and $6,000 in all other counties.
Who qualifies: Any homeowner who occupies the property as their principal place of residence as of January 1 of the tax year.
How to apply: In most counties, this exemption is applied automatically once you purchase a home and the Assessor’s Office has your owner-occupant information on file. However, it’s always worth verifying that it appears on your tax bill — especially after a recent purchase or address change.
Estimated savings: A $6,000 EAV reduction at a 10% tax rate saves approximately $600/year. At an 8% rate, approximately $480/year.
Homestead Improvement Exemption
The Homestead Improvement Exemption protects owner-occupants from sharp tax increases triggered by home improvement projects — new additions, finished basements, garage additions, and similar work that increases assessed value.
How it works: The added assessed value from a qualifying improvement is excluded from taxation for up to four years (or until the property is sold, whichever comes first). The exemption is capped at $25,000 in increased EAV.
Who qualifies: Owner-occupants who have completed home improvements that increased the assessed value of their primary residence.
How to apply: Contact your county Assessor’s Office. In some counties, this exemption is applied automatically when an improvement triggers a reassessment; in others, you must file an application. Confirm with your local assessor which process applies to your county.
Senior Citizens Homestead Exemption
The Senior Citizens Homestead Exemption provides an additional reduction in EAV for qualifying senior homeowners. In Cook County, this exemption reduces EAV by $8,000; in other Illinois counties, it’s $5,000.
Who qualifies: Homeowners who are 65 or older as of January 1 of the tax year and occupy the property as their primary residence.
How to apply: File an application with your county Assessor’s Office. In Cook County, seniors who already qualify receive annual renewal forms automatically. In other counties, annual renewal may be required. First-time applicants should contact the assessor directly.
Stacking with GHE: The Senior Citizens Homestead Exemption stacks on top of the General Homestead Exemption. A qualifying Cook County senior can reduce their EAV by a combined $14,000 ($6,000 GHE + $8,000 Senior).
Senior Citizens Assessment Freeze Homestead Exemption (SCAFHE)
The Senior Citizens Assessment Freeze is one of the most powerful exemptions available — and one of the most underutilized. It freezes the EAV of your home at the level it was when you first qualified, protecting you from tax increases driven by rising property values.
Who qualifies:
- Age 65 or older as of January 1 of the tax year
- Total household income at or below $65,000 (all sources combined)
- Own and occupy the property as your primary residence
- Have owned and lived in the property for at least the past two years
How to apply: File an annual application with your county Assessor’s Office. This exemption is not automatically applied — you must reapply every year, and missing the deadline means losing the exemption for that year. Applications typically open in January and have deadlines in the late summer or fall, varying by county.
Why it matters: In areas where property values have risen sharply — which describes much of the Chicago South Suburbs over the past decade — the freeze can produce savings far exceeding any fixed-dollar exemption. A senior who froze their EAV at $30,000 when market values were lower may now be saving thousands per year compared to their unexempted neighbors.
Veterans with Disabilities Exemption
Illinois offers property tax relief for veterans with service-connected disabilities, with the exemption amount scaling based on disability rating:
- 30–49% disability: $2,500 EAV reduction
- 50–69% disability: $5,000 EAV reduction
- 70% or greater disability: Full exemption — the home is completely exempt from property taxation
Who qualifies: Illinois veterans with a service-connected disability rating from the VA who own and occupy their home as a primary residence. Surviving spouses of veterans who died in service or from a service-connected disability may also qualify.
How to apply: File with your county Assessor’s Office along with documentation of your VA disability rating. Annual renewal is required in most counties.
Returning Veterans Exemption
The Returning Veterans Exemption provides a one-time $5,000 EAV reduction for veterans returning from active duty in an armed conflict. It applies for the tax year the veteran returns home.
Who qualifies: Illinois veterans who have served in an armed conflict and returned to Illinois from deployment during the tax year.
How to apply: File with your county Assessor’s Office with documentation of your deployment and return date. This is a one-time exemption — it applies only for the year of return.
How to Apply: County-by-County Resources
Applications are filed with your county Assessor’s Office. For South Suburban homeowners, the key contacts are:
- Cook County: Cook County Assessor’s Office — cookcountyassessor.com. Online application portal available for most exemptions.
- Will County: Will County Supervisor of Assessments — willcountysoa.com. Applications accepted in person or by mail.
- Kankakee County: Kankakee County Supervisor of Assessments — contact the county offices directly for exemption forms.
Deadlines vary by county and exemption type. As a general rule, applications for the current tax year must be filed by late summer — but confirming exact deadlines with your county office is always the right move.
Can You Appeal Your Assessment?
Yes — and if you believe your home is over-assessed, appealing is one of the most effective ways to reduce your property tax bill permanently. Illinois homeowners can appeal to:
- The county Assessor (first-level appeal)
- The county Board of Review (second-level appeal)
- The Illinois Property Tax Appeal Board (PTAB) (state-level appeal)
To support an appeal, you’ll need comparable sales data showing that similar nearby homes have lower assessed values relative to their market prices. A local real estate professional familiar with your market can be an invaluable resource in compiling this data.
Don’t Leave Money on the Table
Homestead exemptions aren’t automatic in most cases — you have to apply, and in many instances reapply annually. If you purchased a home within the last few years and haven’t verified which exemptions are on your bill, pull up your most recent tax statement and check. Many Illinois homeowners are missing one or more exemptions they’re entitled to.
The Krembo Group works with buyers throughout the South Suburbs — Cook County, Will County, and beyond — and we’re happy to help you understand the tax landscape for any property you’re considering. Reach out to us with any questions about property taxes, exemptions, or the home buying process in the South Suburbs.
More Illinois Real Estate Guides
Browse our complete guide libraries, or contact Dan Krembuszewski at 708-921-0035 for personalized help in the Chicago South Suburbs.
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