Ask Terry Questions Property tax exemptions in Cook County

Property tax exemptions in Cook County

By Terry Savage on March 07, 2014 | Taxes & Economy

Terry, I live in Cook County Illinois. At what age does the Homeowners exemption for your primary residence take affect? Are there other exemptions? Does it matter if one spouse is not of retirement age?
Thanks,Ray

Terry Says:  That’s a good question, and the answer is a bit complicated because there are four different programs that might help you save on  property taxes — aside from the basic appeal of your assessment.  Here’s the information directly from the Cook County Treasurer’s website:  http://www.cookcountytreasurer.com/exemptions.aspx

There are currently four exemptions that must be applied for or renewed annually: The Homeowner Exemption, Senior Citizen Homestead Exemption, Senior Citizen Assessment Freeze Exemption, and the Home Improvement Exemption.

1. Homeowner Exemption

Taxpayers whose single-family home, townhouse, condominium, co-op or apartment building (up to six units) is their primary residence can save $250 to $2,000 per year, depending on local tax rates and assessment increases. First-time applicants must have been the occupants of the property as of January 1 of the tax year in question.

The Cook County Assessor’s Office now automatically renews Homeowner Exemptions for properties that were not sold to new owners in the last year.

In neighborhoods where assessments have increased sharply, this exemption also now can help buffer the reassessment and be worth as much as $2,000 ($20,000 in Equalized Assessed Value multiplied by the local tax rate).

This program is administered by the Cook County Assessor’s Office. New owners should apply to:

Cook County Assessor’s Office 118 North Clark Street, Room 320 Chicago, IL 60602 312.443.7550

You may find applications and additional information at: www.cookcountyassessor.com

2. Senior Citizen Homestead Exemption

Seniors can save up to $250 a year in property taxes, and up to $750 when combined with the Homeowner Exemption. For the 2013 tax year, the applicant must have owned and occupied the property as of January 1, 2013 and must have been 65 years of age or older during the year for which you are applying.

3. Senior Citizen Assessment Freeze Exemption

Qualified senior citizens can apply for a freeze of the assessed value of their property. Over time, in many areas, this program results in taxes changing minimally and often decreasing as surrounding properties continue to rise in assessed value. This is the most valuable homeowner exemption program. The value increases over the years as it eliminates the impact of regular reassessment increases that may occur every three years.
For the 2013 tax year, the applicant must have owned and occupied the home on January 1, 2012 and January 1, 2013 and have been responsible for the 2012 and 2013 taxes.

4. Home Improvement Exemption

Homeowners can make up to $75,000 worth of property improvements without an increase in property taxes for at least four years. The value varies depending on the reduction of the assessed value and the tax rates where the property is located.

There are also several state and city programs now available.

Senior Citizen Tax Deferral The household income limit to participate in this program has increased to $55,000. This program works like a loan from the State of Illinois to qualified senior citizens, with an annual interest rate of 6%. Any portion or all (up to $5,000 per year) of the tax may be deferred until the house is sold or until the death of the taxpayer. To apply, contact the Cook County Treasurer’s Office at  312.443.5100

Disabled Veteran Homestead Exemption Administered through the Illinois Department of Veteran’s Affairs. Call  312.814.2460    .

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