They say two things in life are certain: death and taxes. If you own property in Cook County, you understand the pain of receiving property tax bills. Fortunately, there may be ways to reduce your tax liability. We’ll walk you through the process and help you identify ways to save on your Cook County property taxes.
Types of Cook County Homestead Exemptions
If you’re new to property ownership, the term homestead exemption may also be new to you. Do you think you might qualify for Cook County homestead exemptions, but don’t know how to apply? That’s where Ownwell can help. Below is a non-exhaustive list of exemptions for homeowners in Cook County, Illinois.
General Homestead Exemption
If you own a residential property and it’s your primary residence, you may qualify for a general Cook County homestead exemption. This can reduce the equalized assessed value (EAV) of your home by $10,000 for tax purposes.
To qualify, you must have a lease, a contract, or own the property by January 1st of the tax year. In most situations, this exemption is renewed annually. However, it’s always a good idea to check your tax statement in case you need to fill out the Cook County Homestead Exemption application again to decrease your Chicago property taxes.
Senior Citizens Assessment Freeze Homestead Exemption (SCAFHE)
The SCAFHE is a senior exemption for individuals aged 65 years or older who reside in Cook County. It reduces the equalized assessed value by at least $8,000 and goes up to the same amount as the general homestead exemption if it’s more. Note, the two exemptions can’t be combined.
This exemption also “freezes” the value of your home during your base year, which is usually the year before you first apply and qualify. As long as you qualify each year, your property's equalized assessed value will remain the same.
To qualify, you must occupy the property as your primary residence and be 65 or older during the tax year. And you must renew it every year in Cook County.
Disabled Persons Homestead Exemption
If you become disabled during the tax year or were already in a disabled condition, you may qualify for the disabled persons homestead exemption. This reduces the taxable value of your property by $2,000, although the actual amount may vary based on your disability categorization. It can be combined with other exemptions, like the general homestead or the senior citizens' homestead exemption.
The county requires specific documents on the application to provide proof of disability, which can be found here.
Veterans Homestead Exemption
For those returning from active duty in armed conflict, there are additional exemptions. If you qualify, you’ll receive a $5,000 reduction of the equalized assessed value of your real estate taxes only during the year you return.
If you are a disabled veteran and occupied the residence as your primary home during the tax year, you may also be eligible for this exemption. You must have service-connected disabilities rated at 30% or higher that have been certified by the United States Department of Veterans Affairs as of the tax year you’re filing for.
Similarly, note that there is also a World War II Veterans Exemption, which allows veterans who were members of the United States Armed Forces during World War II, regardless of their level of disability rating, to receive property tax savings. The date range is December 7, 1941, to December 31, 1946.
Long-Time Occupants Homestead Exemption
The Cook County Assessor's Office offers a long-time occupant exemption for people who have lived in a property for 10 or more consecutive years and have a household income of $100,000 or less. The period is reduced to five years if you received government or nonprofit assistance to acquire the property. However, it's worth noting that only a small percentage of residents qualify for this exemption, with just 2% currently eligible.
The county also offers a home improvement exemption, which allows you to upgrade your home or increase its value without being taxed on up to $75,000 of the added value for up to four years.
Property Tax Extension Limitation Law (PTELL)
PTELL stops a taxing district, such as a municipality or school district, from increasing property tax extensions by more than the rate of inflation. It doesn't limit individual tax bills, but limits total tax revenue growth. It's designed to protect Cook County homeowners from rapidly increasing tax burdens, and districts can only exceed the set "cap" if voters approve.
Please note that your value may still change due to the loss of exemptions, reassessment, or voter-approved increases.
Natural Disaster
In places affected by natural disasters, Cook County offers several programs to help taxpayers. These include the natural disaster homestead exemption, the homestead improvement exemption, and federal and state disaster tax relief. Eligibility and benefits vary depending on the situation, but the exemption can last up to four years.
Eligibility Requirements
Property tax exemptions aren’t available to landlords or people who rent out their houses. To qualify for any homestead exemption, the property must be your primary residence as of January 1st of the tax year.
The Application Process
Applications are available through the Cook County Assessor's website. The online platform is ideal for reapplication, first-time applicants, and new homeowners. You'll provide the necessary documentation that you own the property and use it as your primary residence. The application deadline changes by a few days each year, so check the assessor's website, but it's usually around the end of April.
If you missed the deadline and still wish to apply, you can submit a Certificate of Error.
Common Mistakes to Avoid
Before you make an individual property tax payment, don’t assume you’re automatically eligible for an exemption, and don’t expect the county to do the work for you. Review your property tax statement every year to ensure you complete the application process when necessary.
Some exemptions, such as the disabled persons exemption, require a long list of documentation. Ensure you have everything ready before applying to avoid any delays, and pay close attention to the filing periods.
If you get a notice that you’re property was reassessed at a higher amount, don’t ignore it and assume it will go away. You may want to appeal the assessed value. Appealing involves working with the tax assessor and the County Board of Review. Illinois property tax rates are some of the most complicated in the nation, so allow a professional to help you.
Maximizing Savings with Professional Advice from Ownwell
From assessment notices to taxing districts, tax bills can be confusing. At Ownwell, we help you take advantage of the exemptions available to you. We also review retroactively to determine if you’ve missed years when you were eligible for an exemption.
Not only that, but we work on a contingency-fee basis and only collect money if you save. Let us help you maximize your potential savings.
