Chicago Property Tax and Transfer Tax Explained

This article is part of our Moving to Chicago guide.

Chicago property tax is calculated and billed by Cook County. The Assessor values your home, a state multiplier adjusts that value, exemptions come off, and the result is multiplied by the local tax rate. The median Chicago homeowner bill for tax year 2025, billed in 2026, was $4,597. On top of that, buyers pay a one-time city transfer tax of 0.75% of the price at closing, and sellers pay about 0.45%.

This guide walks through each step with a worked example at the citywide median sale price. If you’re still deciding whether to buy, start with our guide to buying a home in Chicago or the wider moving to Chicago guide.

How does Cook County assess a Chicago home?

The Cook County Assessor estimates the market value of every property, then applies an assessment level. For homes (Class 2 residential), the assessment level is 10% of market value. Most commercial property is assessed at 25%. So a home the Assessor values at $400,000 has an assessed value of $40,000.

The county reassesses on a three-year cycle, one region at a time. The City of Chicago was last reassessed in 2024 and is next due in 2027. The 2024 values first showed up in full on tax year 2024 bills, which were paid in 2025.

What is the state equalizer?

Illinois law sets property assessments at one-third of market value statewide. Cook County assesses homes at 10%, so the state applies a multiplier, called the equalizer, to bring Cook County’s total in line. The final equalizer for tax year 2025 is 3.0300, announced June 18, 2026. It was 3.0163 for tax year 2023. Your assessed value times the equalizer gives your equalized assessed value (EAV).

How is a Chicago property tax bill calculated?

The Cook County Treasurer’s property tax primer (October 2025 update) gives the formula:

Market value × 10% = assessed value
Assessed value × state equalizer = equalized assessed value (EAV)
EAV − exemptions = adjusted EAV
Adjusted EAV × composite tax rate = your tax bill

The composite tax rate is the sum of the rates of every taxing body that covers your address: the city, Chicago Public Schools, the park district, the county, the water reclamation district and others. The Cook County Clerk publishes the rates for each tax code every year.

Worked example: a home at the Chicago median sale price

The median sale price in the City of Chicago was $405,000 in August 2026 (Illinois REALTORS, all home types). For this example we assume the Assessor’s market value matches that price and that the owner lives in the home and gets the homeowner exemption. In practice the Assessor’s value can sit above or below what you paid.

Step	Calculation	Result
Market value	Median sale price, Aug 2026	$405,000
Assessed value	$405,000 × 10%	$40,500
Equalized assessed value	$40,500 × 3.0300 (TY2025 equalizer)	$122,715
Homeowner exemption	− $10,000	$112,715
Estimated bill	$112,715 × your composite tax rate	Depends on your tax code

Our arithmetic on the sourced inputs above. Your bill depends on your tax code, your exemptions and the Assessor’s value for your home.

To finish the estimate, multiply $112,715 by the composite rate printed on the home’s second-installment bill, or on the Cook County Clerk’s rate report for its tax code. Every percentage point of tax rate adds about $1,127 to this bill ($112,715 × 1%). For scale, the most common Chicago composite rate was 6.995% in tax year 2023 (Civic Federation). The Assessor notes that rates almost always fall after a reassessment, and Chicago was reassessed in 2024, so use the current rate on the bill rather than this older figure.

How much is the median Chicago property tax bill?

The median Chicago homeowner bill was $4,597 for tax year 2025, billed in 2026, according to the Cook County Treasurer’s August 2026 analysis. That was up 3.2% from $4,457 for tax year 2024, which had jumped 16.7% to a record after the 2024 city reassessment. The city’s own levy rose 2.3% to $1.85 billion.

Use the worked example for a home you’re thinking of buying, and the median for a sense of what a typical Chicago owner pays. To compare these costs with other cities, see our moving costs by city guide.

What property tax exemptions can Chicago homeowners get?

Exemptions cut your EAV before the tax rate is applied. Your savings equal the exemption amount times your local rate. These are the main ones, per the Cook County Assessor (checked October 2026):

Exemption	What it does	Who qualifies	Renewal
Homeowner	Cuts EAV by $10,000	You own the home and live in it as your main residence on January 1 of the tax year	Automatic
Senior	Cuts EAV by $8,000	Homeowners aged 65 or older	Automatic
Low-Income Senior Assessment Freeze	Freezes your EAV	Seniors with household income of $65,000 or less (2024 income, for tax year 2025)	File every year
Home Improvement	Excludes up to $75,000 of added value for 4 years	Owners who improve their home	Automatic

In the Treasurer’s tax year 2023 Chicago example, the homeowner exemption saved $699.90 and the senior exemption saved $559.92. The dollar savings move with the tax rate each year.

The Assessor also offers exemptions for longtime homeowners, people with disabilities, veterans with disabilities, returning veterans and World War II veterans. If you buy, you get the homeowner exemption starting with the next tax year, since it depends on living in the home on January 1. Apply through the Assessor once you’ve moved in.

When are Chicago property taxes due?

Cook County bills property tax in two installments, and each bill pays for the previous year. Under the normal schedule, the first installment equals 55% of the prior year’s total bill and is due around March 1. The second installment covers the balance and reflects the new assessment, rates and exemptions. By statute it is due by August 1, though recent years have run late.

Tax year 2025 bill	Amount	Due date
First installment	55% of the tax year 2024 bill	April 1, 2026
Second installment	The balance	October 1, 2026 (bills out by September 1)

What is the late penalty?

Late payments are charged 0.75% per month, or 9% a year, for tax year 2023 and later (35 ILCS 200/21-25). The rate was 1.5% per month before that.

How do you appeal a Chicago property tax assessment?

You can’t appeal the tax rate, but you can appeal the value the Assessor puts on your home. There are two local steps.

Cook County Assessor. File during your township’s window, which opens after reassessment notices are mailed. Chicago township windows open in reassessment years and also each year in between. Dates are on the Assessor’s calendar.
Cook County Board of Review. If the Assessor’s decision doesn’t satisfy you, or you missed its window, file with the Board of Review. It has its own township windows and an online portal.

Beyond the Board of Review, the state Property Tax Appeal Board is another forum for contesting an assessment. The main question in any appeal is whether the Assessor’s market value is too high, so a recent purchase price and errors in your property record are the place to start. With Chicago next reassessed in 2027, that year’s notice is the one to watch closely.

How does property tax work when you buy?

Because Cook County taxes are collected one year in arrears, the seller still owes tax for the part of the year they owned the home when you close. The seller credits that amount to you at closing, and you pay the bill when it arrives. Contracts often set the credit at 105% or 110% of the last full bill to cover a likely increase. Our rent vs. buy in Chicago page shows how property tax fits into a monthly cost of ownership, and condo vs. single-family in Chicago covers how condo units are taxed alongside assessments.

Who pays the Chicago transfer tax at closing?

Three governments tax the transfer of a Chicago home: the city, Cook County and the State of Illinois. The buyer pays the city’s main portion. The seller pays the city’s CTA portion and, by custom, the county and state taxes. The law lets either party pay the county and state taxes, so the contract can shift them.

Tax	Rate per $500	Percent of price	Who pays	On a $405,000 home
City of Chicago	$3.75	0.75%	Buyer	$3,037.50
City of Chicago, CTA portion	$1.50	0.30%	Seller	$1,215.00
State of Illinois	$0.50	0.10%	Seller, by custom	$405.00
Cook County	$0.25	0.05%	Seller, by custom	$202.50
Buyer total	$3.75	0.75%	Buyer	$3,037.50
Seller total	$2.25	0.45%	Seller	$1,822.50

Rates per the City of Chicago, Illinois statute and Chicago Title’s July 1, 2026 transfer tax chart. Dollar amounts are our arithmetic at the August 2026 median sale price.

To calculate it yourself, divide the price by $500, round up to the next whole number, and multiply by the rate. At $405,000 that’s exactly 810 units of $500, so the buyer pays 810 × $3.75 = $3,037.50.

Two more points for buyers:

There is no tiered “mansion tax.” The Bring Chicago Home referendum, which would have raised rates on higher-priced sales, failed on March 19, 2024, and the July 2026 Chicago Title chart shows a flat rate.
Buyers aged 65 or older can get the CTA portion refunded if the price is $250,000 or less and they live in the home for at least a year (Section 3-33-060(O), per the City of Chicago).

What should you do next?

Before you make an offer, look up the home’s current bill and exemptions on the Cook County Treasurer’s site, and check whether the Assessor’s value is close to the asking price. Budget 0.75% of the price for the city transfer tax on top of your other closing costs. After you move in, apply for the homeowner exemption. Our Chicago home buying guide covers the rest of the process, from attorney review to closing.

Frequently asked questions

When will Chicago be reassessed next?

In 2027. The city was last reassessed in 2024, and Cook County reassesses each region every three years.

Does the buyer or seller pay the Chicago transfer tax?

Both. The buyer pays the city’s $3.75 per $500 (0.75%). The seller pays the CTA portion ($1.50 per $500) and, by custom, the state ($0.50) and county ($0.25) taxes, about 0.45% in all.

How much is the homeowner exemption worth in Chicago?

It removes $10,000 from your equalized assessed value. In the Treasurer’s tax year 2023 Chicago example, that saved $699.90.

Will my property tax bill go up after I buy?

Your bill moves with the three-year reassessment, the state equalizer, local tax rates and your exemptions. The homeowner exemption only starts with the tax year after you move in, so plan for the bill without it at first. The median Chicago bill rose 3.2% for tax year 2025 after a 16.7% jump the year before.

Sources

Author: Go Big City Team

Next step: see the full Moving to Chicago guide for rent, costs, transit, weather, jobs and neighborhoods in one place.