From 2009 to 2011, the average property tax assessment in Illinois was $3,507. This had increased to $3,959 in 2015. In 2013, property taxes accounted for more than three times as much tax revenue as sales tax and more than double the amount collected from corporate and personal income taxes.

Approximately 64% of property taxes are derived from residential properties, while 22% of property taxes collected are attributable from commercial properties. Just under 60% of property tax collections are used to fund public education systems, and 63% of local government funding is used to support public schools.

Illinois Counties With Highest and Lowest Property Taxes

The counties in Illinois with the highest property tax rates are found in the northeast region of the state. In 2015, Lake County had the highest property tax levy, with an average bill of $6,285 per year. Other counties with high property tax assessments include DuPage County, with an average levy of $5,417, McHenry County with an average levy of $5,226 and Kane County with an average levy of $5,112.

The counties with the lowest property taxes are found in the southern-most region of the state. Hardin County had the lowest property tax, with an average collection of $447. Pulaski County had an average assessment of $526, while Gallatin County had an average assessment of only $553.

Illinois Compared to Neighboring States

The Midwest has a few states that mirror Illinois’ high property tax rate. In 2016, the effective property tax rate in Wisconsin was 1.97%, while the effective property tax rate in Michigan was 1.83%. These two states have the fourth and eighth highest rates, respectively. However, this isn’t always the case for neighboring states, especially those south of Illinois, as Iowa’s rate is 1.47% and Missouri’s rate is only 1%. Missouri’s rate is approximately equal to the median rate across all states. The lowest property tax rate for any neighboring state is found in Kentucky, where the effective rate in 2016 is 0.84%. Still, this is tied for the 18th lowest rate in the United States. Indiana, with an effective rate of 0.88%, comes in 23rd.

Illinois Compared to the National Average

Illinois’ median property tax rate came in as the seventh highest in the country. On average, 5.11% of an individual’s income went towards paying property taxes, and this is the fifth-highest rate in the United States. The assessed property tax was an average of 1.73% of the property’s value. This rate was the sixth highest in the country.

Why Illinois Property Taxes Are Among Highest in the Country

Along with one of the highest effective property tax rates in the nation, Illinois is one of seven states to assess a gasoline tax. It utilized a rate of 6.25% in 2016. It also has the 10th highest state and local sales tax rates. Why must Illinois assess high property tax rates?

Illinois has implemented a flat income tax rate. In 2016, corporations had to pay 5.25% of net income, while individuals had to pay 3.75% of net income. Neighboring states with progressive income tax brackets assess rates. Wisconsin taxes the top income bracket 7.65%, while individuals living in Iowa pay 9% on taxable income over $68,000. The top income tax rate for individuals living in Minnesota is 9.85%. These higher rates allow governments to collect revenue via income tax. Illinois raises a greater portion of their revenue from property tax implementations.

There are a multitude of benefits enjoyed by those living in Illinois. Thirty-three Fortune 500 companies are headquartered in Illinois, which creates an excellent labor pool. Illinois's income per capita of $29,666 is above the national average. Also, Illinois’ strong education system is evidenced by its students' SAT scores, which ranked as the second highest in the nation. Although Illinois has implemented a property tax assessment that is one of the highest in the United States, the revenue collected from the levy gets returned to Illinois residents in a number of ways.

Indiana Property Tax Guide

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