North Shore Property Taxes: Exemptions Homeowners Often Miss

Key Takeaways

• Property Taxes
• Financing
• North Shore
• Written by Mark Nesci, Broker Associate with Baird & Warner

By Mark Nesci, Mark Nesci Real Estate Services

Property taxes are one of the biggest ongoing costs of owning a home on the North Shore. The good news is that Illinois offers exemptions that can lower your bill every year. The catch is that many new owners never apply for them, and the rules aren't the same everywhere on the North Shore. Here's what to know.

How do Illinois property tax exemptions work?

They lower your home's equalized assessed value, or EAV, which is the taxable value your tax rate is applied to.

An exemption doesn't take dollars directly off your bill. Instead, it reduces your EAV, and your savings equal the exemption amount multiplied by your local tax rate. Because tax rates vary by town and school district across the North Shore, the same exemption can save different amounts in different places.

As a simple illustration, if your local tax rate were 8%, an $8,000 exemption would lower your bill by about $640 a year, and a $10,000 exemption by about $800.

Why does it matter which county you're in?

Because the North Shore spans two counties, and the exemption amounts differ.

Lake County includes Highland Park, Highwood, Lake Forest, and Lake Bluff. The general homestead exemption here reduces EAV by $8,000.

Cook County includes Wilmette, Kenilworth, Winnetka, Glencoe, and Evanston. The homeowner exemption here reduces EAV by $10,000.

In both counties, homeowners 65 and older can claim an additional senior exemption of $8,000.

Do I have to apply?

Usually, yes, if you're a new owner.

Exemptions are tied to the owner who lives in the home, so they don't automatically transfer from the seller to you. After you close, check your property record with your county assessor. If the exemption isn't listed in your name, apply.

In Lake County, apply through the Chief County Assessment Office or your township assessor. In Cook County, apply through the Cook County Assessor's Office, which offers online applications. Have your closing documents and proof that you live in the home ready.

Are there other exemptions to know about?

Yes. Depending on your situation, you may also qualify for:

• Senior freeze: qualifying seniors with household income under the state limit can freeze their home's taxable value at a base year. It freezes the value, not the tax bill, so taxes can still change.
• Home improvement exemption: this can temporarily exempt part of the added value from certain improvements to your home.
• Veterans and disability exemptions: these are available for qualifying veterans and people with disabilities.

Each one has its own rules and deadlines, so check your county assessor's website.

How should buyers plan for property taxes?

Build them into your budget from the start, not after your first bill arrives.

• Look at the seller's tax bill, but remember it may include the seller's exemptions. Your bill could be higher until your own exemptions are approved.
• Apply soon after closing so you don't miss a year.
• Review your bill every year to make sure your exemptions are still applied.
• If you think your home's assessed value is too high, ask about the appeal process for your township or county.

The Bottom Line

North Shore homeowners can lower their property taxes with exemptions, but new owners usually have to apply, and the amounts depend on the county. Lake County offers an $8,000 homeowner exemption and Cook County offers $10,000, with an extra $8,000 for seniors in both. A few minutes with your county assessor after closing can save you money for as long as you own your home.

Frequently Asked Questions

How much is the homestead exemption in Lake County, Illinois?

It reduces your home's equalized assessed value by $8,000. Your dollar savings equal $8,000 multiplied by your local tax rate.

Is the homeowner exemption different in Cook County?

Yes. In Cook County, it reduces equalized assessed value by $10,000.

Is there an extra exemption for seniors on the North Shore?

Yes. Homeowners 65 and older can claim an additional $8,000 senior exemption in both Lake and Cook counties.

Do exemptions transfer when I buy a home?

No. Exemptions are tied to the owner who lives in the home, so new owners usually need to apply with their county assessor.

Keep Learning

• Read: Understanding Closing Costs on the North Shore
• Read: Living in Highland Park: A Community Guide
• Explore our Buyers page

Buying on the North Shore and want a clear picture of your total monthly costs, including property taxes? Let's talk it through. Schedule a consultation.