What is the Property Tax Rate in Chicago?

Based on HomeLight’s analysis of publicly available data, the average effective property tax rate for a primary residence in Chicago is approximately 1.90% of its estimated value. This is higher than the national average of 0.90%.

For example, with a 1.90% effective tax rate, a homeowner with a $362,500 home might pay around $6,887 in annual property taxes.

An effective property tax rate represents the actual percentage of a property’s market value that a homeowner pays in taxes, considering the assessed value and any exemptions or deductions.

Note: HomeLight’s Chicago property tax calculator provides a ballpark estimate for a primary residence using average rates. Your tax can vary based on location and the specific taxing districts (e.g., schools, fire districts, and libraries) that apply to your parcel. For a precise number, contact the Cook County Treasurer’s Office.

Are There Property Tax Exemptions in Chicago?

Homeowners in Chicago may qualify for several property tax exemptions that can lower their tax bill. These are offered through the Cook County Treasurer’s Office, depending on your location. Common exemptions include:

Homeowner exemption: For homeowners occupying the property as their principal residence on January 1 of the tax year. This exemption reduces the equalized assessed value (EAV) by $10,000.
Over-65 exemption: Must be the owner-occupant of the residence and aged 65 or older in the year prior to the tax year. This is identical to the homestead exemption.
Disabled individual exemption: For disabled individuals who own and occupy their primary residence, there is an annual reduction of $2,000 in EAV.
Veteran with disabilities exemption: For qualified veterans with service-connected disability and property under $250,000 EAV.

If you’re buying a home in Chicago, note that property tax exemptions do not automatically transfer from the previous owner. After the home changes hands, you’ll need to reapply based on your own eligibility.

When Are Chicago Property Taxes Due?

Property taxes in Chicago are billed biannually:

March 1: First installment (55% of prior year’s total tax)
August-October: Second installment (based on the current year’s assessment)

What Do Property Taxes Pay For in Chicago?

Local property taxes in Chicago pay for important local services, including:

Public schools
Police, fire, and EMS services
Roads, streets, and traffic signals
Parks, libraries, and community centers
City and county government operations
Infrastructure like water, sewer, and trash services
Repayment of local bond projects (such as transit and school improvements)

What Does It Cost to Buy a Home in Chicago?

How Much House Can You Afford?

Affordability in Chicago depends on your income, debt, credit score, and mortgage rate. With a median household income of around $75,134 in the Windy City, a buyer might afford a home in the $210,000–$240,000 range using standard debt-to-income guidelines. However, with the Chicago median home price exceeding $362,500, many buyers need dual incomes or additional savings to qualify.

Use HomeLight’s Home Affordability Calculator to estimate your budget based on your income, debts, and current rates.

What Down Payment Will You Need in Chicago?

According to Nerdwallet, the average down payment on a house in Chicago is 14%. However, down payment amounts vary widely depending on loan type and credit score. While 20% used to be the expected standard, many buyers put down between 5% and 15%, with 3% options available for FHA and some conventional first-time buyer loans.

For a $362,500 home, here’s what your down payment could look like:

3% down = $10,875
5% down = $18,125
10% down = $36,250
15% down = $54,375
20% down = $72,500

Try HomeLight’s Down Payment Calculator to see how different down payments affect your monthly payment and loan size.

How Much Are Closing Costs in Chicago?

Buyers in Chicago can expect to pay about 2% to 5% of the purchase price in closing costs. These may include:

Loan origination and underwriting fees
Title insurance and escrow fees
Appraisal and inspection costs
Prepaid property taxes and homeowners’ insurance
Filing and recording fees

For a $362,500 home, that means estimated closing costs of $7,250 to $18,125. Use HomeLight’s Closing Costs Calculator to get a personalized estimate based on your expected Chicago home purchase price.

How To Find a Trusted Chicago Real Estate Agent

An experienced Chicago agent can help you understand local tax rates, school districts, and development trends — and guide you toward neighborhoods that fit your lifestyle and budget.

HomeLight’s free Agent Match tool uses data from over 27 million transactions and thousands of verified reviews to match you with top Chicago agents based on real performance, not paid ads.

Tell us a little about your buying plans and get matched today with no obligation.

Additional resources when searching for a trusted buyer’s agent in Chicago:

Buying and Selling? Consider “Buy Before You Sell”

If you’re buying a new home in Chicago but need to sell your current property first, HomeLight’s Buy Before You Sell program can simplify the entire process. This modern solution helps you unlock equity from your current home so you can make a non-contingent offer on your new home — and only move once. Watch the short video below to see how it works.