The state of Illinois has the second-highest property taxes in the nation, more than double the national average. Cook County itself is on the high end of that, and in 2024, tax bills spiked for more than 240,000 homeowners. The average homeowner can expect to see their property tax bill increase by $1,700 annually.
Many homeowners, especially senior citizens who often have no unsubsidized income, are seeking ways to reduce their property tax bills. The state and county offer an Illinois property tax freeze for seniors, as well as exemptions. We want to ensure you understand precisely what these are and how to take advantage of them.
Key Programs for Seniors
If you’re a retired senior or living on a fixed income, growing tax bills are a big problem. You may have lived in your home for decades, and as property values around you skyrocket, so does your property tax. The good news is that Illinois offers several senior exemptions that can help you lower your tax bill.
Low-Income (SCAFHE)
To qualify for the Senior Citizens Assessment Freeze Homestead Exemption, also known as SCAFHE, you must be at least 65 years old and use the home as your personal residence. Your annual household income must be less than $65,000, and you must be responsible for the real estate taxes on the property.
SCAFHE is different than the traditional senior homestead exemption because there is a possibility that the equalized assessed value of your home may be “frozen” as long as you qualify. This senior freeze helps keep tax amounts lower, even as property values rise.
The senior property tax freeze in Illinois only caps the value of your home, not your actual tax rate or bill. If you make improvements that increase the property's value, or if the overall property tax rate in the area goes up, this Illinois senior property tax freeze may no longer apply.
This exemption also doesn’t automatically renew, so you must reapply each year. You can submit your application to the Chief County Assessment Office or the Cook County Assessor’s Office. Ownwell can help homeowners apply for homestead exemptions for that year and retroactively for up to two years across all U.S. states.
Senior Citizens Homestead Exemption
While the basic senior citizens’ Illinois homestead exemption doesn’t freeze the value of your home, it does take $8,000 off the Equalized Assessed Value (EAV). This means if you own a home worth $489,000, the property tax liability is assessed at $481,000.
To meet the filing requirements and filing deadline for this exemption, you must be 65 years or older, and the home must be your principal residence as of January 1 of the tax year. Unlike SCAFHE, this exemption automatically renews each year, so there’s no need to remember to reapply. However, you can’t stack it with the general property tax exemptions.
Senior Citizens Real Estate Tax Deferral Program
The senior citizens real Estate Tax Deferral Program differs from an exemption but functions almost like a loan to help with your tax bill payment. Under this real estate tax deferral program, you can defer up to $7,500 of real estate taxes each year on your primary residence in Illinois. You can repay the loan either when you sell the property or from your estate after you die, which can help you avoid delinquent property taxes.
The qualification criteria for this tax deferral program for seniors are:
Age: Provide proof of age that you are 65 or older before June 1 of the year of the application
Income: Have a household income limit of $65,000
Residency: Own and occupy the property for at least three consecutive years for residential purposes
Insurance: Have fire or casualty insurance equal to the amount of the deferred taxes
Special circumstances: Have no outstanding property tax or special assessments
If the homeowner dies, the surviving spouse can still qualify if they are at least 55 and apply within six months of the taxpayer’s death. If you have joint ownership, you must have written approval from your spouse or a Trustee if the property is held in an Illinois Land Trust.
Long-time Occupant Homestead Exemption (LOHE)
In Illinois, there's a specific exemption for Cook County residents called the Long-time Occupant Homestead Exemption (LOHE). The LOHE has stringent requirements under Illinois state law. Still, some taxpayers may qualify to stack this exemption on top of the general homestead exemption for additional limited income protection. The program is designed to lower taxes for those who have owned their homes for a long time, but only 2% of homeowners are eligible each year.
To be eligible, you must have owned and lived in your Cook County property for 10 years, for example, from January 1, 2014, to January 1, 2025, to apply in 2025. Income requirements mean you must make $100,000 or less the year before you apply. To qualify, your assessment increase must be significant enough to exceed the legislature’s set amounts.
Tailored Exemptions for Veterans and Persons with Disabilities
There are two types of exemptions for veterans for a property tax reduction:
The veterans with disabilities exemption for specially-adapted housing can be up to $100,000 off the assessed value for specially adapted housing built with federal funds. To qualify for this exemption, your disability is determined by the U.S. Department of Veterans Affairs.
The standard homestead exemption for veterans with a service-connected disability allows qualified veterans to benefit from a decreased equalized assessment value that corresponds to the level of their disability. A veteran’s surviving spouse can also keep this exemption if the veteran is deceased.
Renewal information:
The standard homestead exemption for veterans auto-renews unless your percentage of disability changes.
The Specially Adapted Housing exemption typically requires annual renewal.
Eligibility Criteria
To qualify for a property tax freeze for seniors in Illinois, you must be 65 years of age or older. You must own the home and use it as your primary residence. For the SCAFHE, your total household income must be less than $65,000. As the homeowner, you must be liable for any real estate taxes on the property. For most of these programs, an annual application is required.
How To Apply for Exemptions
The senior exemption and the exemption for persons with disabilities renew automatically each year. To initiate the annual renewal application, you can use an online form. The following must be renewed each year:
SCAFHE
Veterans with disabilities exemption
Long-time occupant homestead exemption (Cook County only)
The typical deadline to apply for a senior property tax freeze in Illinois varies from year to year but usually falls around late March. Check the tax assessor’s website each year to find the exact deadline.
To avoid common mistakes that may impact your exemption status, don’t assume there’s an automatic renewal. Make sure to apply for past years if applicable. Check back for your exemption status and ensure your application is complete before submitting it.
Illinois tax law is complicated, and you may benefit from having an expert help you identify and apply for your exemptions. If you’re unsure whether you qualify for an exemption, let Ownwell answer your questions. We can also help you with property tax appeals if your assessed value is too high.
What Happens When Tax Rates Increase and Property Values Change?
When property values and tax rates increase, your tax liability also increases. So while it’s nice if your home appreciates, keep in mind that this comes with a larger tax bill, especially in Cook County.
If your mortgage company handles the payment of property taxes each year, your monthly mortgage payment will increase when property values and interest rates rise. This can create financial strain, especially for those on a fixed income.
Get Professional Property Tax Assistance
At Ownwell, we know how to maximize your tax savings. We identify what exemptions you qualify for and can help you collect money from previous years you’ve missed.
If you feel your assessed value is wrong, we’ll help you appeal it. We work on a contingency basis, with no upfront costs. We’re tax experts who know how to apply, appeal, and save by decreasing your property tax liability.
