January 27, 2020
The Civic Federation recently released its annual Effective Property Tax Rates report. The report highlights that in 2017 property tax burdens for many communities in the Chicago region declined from the previous year. While analysis of the report often focuses on the 12 Cook County municipalities included in the study, this blog will examine the selected communities in the collar counties.
An effective property tax rate is an estimate of the percentage of a property’s full market value owed in property taxes during a given tax year. It offers a method of comparing property tax burdens across municipalities and counties. For example, the report shows that in 2017 the average property tax burden for property owners in Elgin in Kane County was 3.17%. More simply stated, in 2017 a property owner in Elgin with real estate worth $200,000 paid an average of $6,340 in property taxes.
The counties surrounding Cook County in Illinois, known as the “collar counties” are Lake, McHenry, Kane, DuPage and Will Counties. Unlike in Cook County, which assesses different types of properties (residential, commercial, industrial) at different rates for the purpose of property taxation, the collar counties assess all types of property at 331/3%.
There is a wide variation in 2017 effective property tax rates among the selected collar county communities. The lowest rate of 1.03% was in Oak Brook in DuPage County and the highest rate among the selected collar county communities was in Waukegan in Lake County at 3.73%. Variations between collar county communities reflect differences in property wealth and the extent to which local governments are dependent on property taxes. Oak Brook has high real estate values and a diversified tax base that includes significant retail sales tax revenues. Waukegan has relatively lower property values and relies more heavily on property taxes to fund its local governments.
The following map and chart show tax year 2017 effective property tax rates for the selected communities in each of the collar counties studied.
To calculate your community’s effective property tax rate, click here, follow the steps listed and input the data in the calculator provided.