Illinois Property Tax Exemption

An Illinois Property Tax Exemption is a legal provision that reduces or, in some cases, completely eliminates a property’s Equalized Assessed Value (EAV).

Because property taxes in Illinois are calculated based on EAV, lowering this value directly reduces the amount of property tax a homeowner or organization must pay.

Illinois offers a wide range of exemptions for eligible homeowners—based on factors such as primary residence status, age, disability, or military service—as well as for qualifying non-profit and governmental properties used for charitable, religious, educational, or public purposes.

Common Illinois Homeowner Property Tax Exemptions

Most homeowner exemptions apply only to a primary residence and must meet ownership and occupancy requirements. These exemptions reduce the assessed value of the property rather than providing a direct dollar-for-dollar tax credit.

General Homestead Exemption (GHE)

The General Homestead Exemption is the most widely used exemption in Illinois. It is available to homeowners who own and occupy their home as their principal residence.

EAV Reduction:

• Up to $10,000 in Cook County
• Up to $6,000 in most other counties
• Automatically renews in many counties once granted

Senior Citizen Homestead Exemption

This exemption provides additional tax relief for homeowners age 65 or older who occupy the property as their primary residence.

EAV Reduction:

• Up to $8,000 in Cook County
• Up to $5,000 in other counties
• Often auto-renewed, depending on county rules

Low-Income Senior Citizens Assessment Freeze Homestead Exemption

Commonly referred to as the Senior Freeze, this exemption is one of the most valuable available.

Benefit: Freezes the property’s EAV at a base year level, protecting seniors from tax increases due to rising assessments

Eligibility Requirements:

• Age 65 or older
• Household income of $65,000 or less
• Annual re-application is required

Homestead Exemption for Persons with Disabilities

This exemption supports homeowners with qualifying disabilities.

• EAV Reduction: $2,000 annually
• Must be the taxpayer’s primary residence

Standard Homestead Exemption for Veterans with Disabilities

Illinois provides significant property tax relief to veterans with service-connected disabilities certified by the U.S. Department of Veterans’ Affairs.

EAV Reduction Based on Disability Rating:

• 30–49% disability: $2,500 reduction
• 50–69% disability: $5,000 reduction
• 70% or greater disability: Full property tax exemption
• Applies to the veteran’s principal residence

Returning Veterans’ Homestead Exemption

This exemption assists veterans returning from active duty in an armed conflict.

• EAV Reduction: $5,000
• Available for two consecutive tax years
• Applies to the veteran’s primary residence

Homestead Improvement Exemption

This exemption helps homeowners who make qualifying improvements to their property.

• Benefit: Temporarily defers increases in assessed value caused by new improvements
• Duration: Up to four years
• Maximum Improvement Value: $75,000 in fair cash value

Non-Homestead Property Tax Exemptions

Illinois law also allows exemptions for certain non-residential properties, including:

• Property owned by the State of Illinois or local governments
• Property used exclusively for schools, religious institutions, cemeteries, and charitable organizations
• Property must be used solely for exempt purposes and not leased or operated for profit

How to Apply for Illinois Property Tax Exemptions

Most property tax exemptions are administered at the county level.

• Applications are filed with the County Assessor’s Office or the Chief County Assessment Office
• Deadlines and documentation requirements vary by county
• Some exemptions automatically renew, while others—such as the Senior Freeze—require annual filing

Electronic Filing Recommendation

Many Illinois counties now offer online exemption applications, allowing homeowners to file electronically, upload supporting documents, and track application status. Electronic filing is strongly recommended because it is:

• Faster and more convenient
• Less prone to processing errors
• Provides confirmation and recordkeeping benefits

Homeowners should visit their county assessor’s website to determine electronic filing availability and specific submission deadlines.

Final Tip

Applying for all eligible property tax exemptions can result in substantial long-term savings. Reviewing your exemption status annually—especially after life changes such as retirement, disability status, or military service—can help ensure you are receiving every benefit available under Illinois law.