Property Taxes 

Property taxes are authorized by the state of Illinois and generate revenue to pay for services provided by local governments. In Cook County, the majority of property taxes are used to fund public school districts, but also provide funding for services provided by other taxing units, including parks, public libraries, emergency protection, forest preserves, public health and safety, as well as municipalities, townships, and Cook County itself.

Every year, each of those government districts and services makes a levy request, asking for the amount of money it needs to conduct its operations and serve the community for the coming year. Property owners, both individual homeowners and businesses, are asked to pay the taxes to support these government services. Each property owner’s tax bill is based on the value of their property.

Multiple Cook County offices are involved in calculating, collecting and disbursing property taxes:.

• The Cook County Assessor sets property values and responds to taxpayer appeals.

• The Board of Review reviews assessments and adjusts values as warranted.

• The Cook County Clerk calculates tax rates based on levy requests submitted by taxing districts and equalized assessments set by the assessor. A tax rate is generated for each individual taxing district; the sum of all district rates constitutes the composite tax rate. Tax bill calculation involves several factors and steps:

  • A property’s assessed valuation, or AV, is set by multiplying property value by the assessment level.

  • The preceding number is multiplied by an equalization factor set annually by the Illinois Department of Revenue.

  • The preceding multiplication sets the equalized assessed value, or EAV, of a property.

  • Subtracted from the EAV are any exemptions that apply, such as the standard homeowner’s exemption on a residential home.

  • EAV minus all exemptions = a property’s taxable value.

  • Taxable value is multiplied by the composite property tax rate, as determined by the county clerk to arrive at the sum of taxes due. 

• The Cook County Treasurer actually handles the money: preparing tax bills, collecting taxes and disbursing that tax revenue to local taxing districts–the school districts, park districts, libraries, etc.

School districts and municipalities can increase their property tax requests to cover increased costs and inflation. But in the state of Illinois, yearly property tax increases are limited to the lesser of 5 percent or the increase in the Consumer Price Index for the year preceding the tax levy year. Levies also can be increased for new property within the taxing bodies’ boundaries.