Why Are Property Taxes So High In Illinois — Is It Time to Sell?

TL;DR: Why Are Property Taxes So High in Illinois — and What You Can Do About It

• Illinois has the second-highest property tax rate in the U.S., with homeowners paying over $5,000 per year on average—more than double the national average.
• A complex system of nearly 7,000 taxing districts, growing pension debt, and rising home values are all driving tax bills higher every year.
• Areas like Cook, Lake, DuPage, and Will Counties have seen spikes of up to 30% in a single year, leaving many homeowners overwhelmed or at risk of foreclosure.
• If your property is outdated, inherited, vacant, or tied up in financial stress, selling for cash may be the smartest way to avoid further burden.
• Fantastic Homes buys houses in any condition across Illinois—no agents, no repairs, no fees. Get a fair cash offer within 24 hours and close on your timeline.

Illinois property taxes are climbing faster than most homeowners can keep up—and there’s no sign of relief. With some of the highest rates in the country, even modest homes are racking up annual bills in the thousands.

Whether you’re facing foreclosure, managing an inherited home, or simply struggling to keep pace, it’s fair to ask: why are property taxes so high in Illinois—and how much longer can you afford to stay?

If your property needs major repairs, is sitting vacant, or is tangled in a stressful situation, selling may be the smartest option.

At Fantastic Homes, we buy houses in any condition—no repairs, no agent fees, no waiting.

We’ve helped homeowners across Illinois, including Cook, Will, Lake, and Kane Counties, sell fast and move on with less stress.

If you’re ready for a fast, fair cash offer and want to regain financial freedom, reach out to our team today.

Illinois Property Taxes at a Glance

The State of Property Taxes in 2024 and 2025

As of 2024, Illinois has the second-highest effective property tax rate in the nation—just behind New Jersey. According to the Tax Foundation, Illinois homeowners pay an average effective rate of 1.95%, while New Jersey tops the list at 2.08%.

Illinois homeowners pay an average of $5,055 per year in property taxes, which is more than double the national average of approximately $2,457.

In areas like Cook County, property tax bills have surged—increasing by as much as 30% in some neighborhoods following recent reassessments. In just 15 southern suburbs of Chicago, the median tax bill is now $6,117.

If it feels like your property taxes keep going up—you’re not imagining it.

How Illinois Compares to Other States

Why are Illinois property taxes so high compared to other states?

Unlike many states that rely on income or sales taxes, Illinois depends heavily on property taxes to fund local services. Other states—like California and Texas—have higher home prices but lower tax rates.

Where Property Taxes Hit the Hardest (Lake County, Cook County & Beyond)

Property tax burdens aren’t the same across the state. In fact, Lake County property taxes Illinois homeowners pay are the highest in the state, with a median annual bill of $8,609. Meanwhile, Cook County saw its total property tax collections rise by $706 million in just one year—highlighting how sharply costs are increasing for many residents.

Counties like Will, Kendall, DuPage, and McHenry are also seeing year-over-year increases in property tax bills—often without noticeable improvements in local services.

If you live in one of these high-tax areas, it’s worth considering whether holding onto your home still makes financial sense.

If you want to see how much you could make by selling your home and relieving yourself of the financial burden, fill out our online form for a free property evaluation based on the highest off-market price. There’s zero obligation to accept the offer—and the money you make is exactly what you walk away with.

How Are Property Taxes Calculated in Illinois?

Assessed Value vs. Market Value

Property taxes in Illinois are based on your home’s assessed value, not its actual market value.

Typically, this is one-third of the market value, but here’s the catch: assessments don’t always reflect reality—especially if your home is outdated, in poor condition, or sitting vacant.

If your house is assessed at a higher value than what it would sell for, you’re paying more than your fair share. For many homeowners—especially those in probate or dealing with inherited property—this can feel like being punished for a home they didn’t even ask for.

The Role of Local Taxing Districts

One of the biggest reasons why property taxes in Illinois are so high is the sheer number of local taxing districts.

Illinois has nearly 7,000 of them—far more than any other state. Each one can levy taxes on your property, including school districts, townships, fire protection districts, park districts, and even mosquito abatement zones.

These layered taxing bodies create a bloated, confusing system that lacks transparency. It’s not just how much you’re paying—it’s who you’re paying, and for what.

Why Are Property Taxes So High in Illinois?

Heavy Reliance on Property Taxes for School Funding

In Illinois, about two-thirds of property taxes go to fund public schools. Unlike other states that provide school funding at the state level, Illinois shifts the burden to local homeowners—regardless of income or home condition.

That means even if your school district is underperforming or your kids have long since graduated, your tax bill keeps climbing.

Nearly 7,000 Local Government Units and Layered Taxing Bodies

Again, this can’t be overstated—why Illinois property taxes are so high has everything to do with the system’s structure. With thousands of overlapping tax bodies, homeowners are often charged multiple times for services that may be duplicated, inefficient, or barely noticeable.

For example, you might be paying separate taxes to a township, municipality, park district, and library district—all serving the same geographic area. And because each entity sets its own levy, there’s no unified cap to prevent your total tax bill from ballooning.

For homeowners dealing with hardship—divorce, job loss, probate—this fragmented system makes it incredibly difficult to predict or manage rising costs.

You’re not just facing a high tax rate; you’re navigating an outdated system that was never built for transparency or affordability.

Skyrocketing Pension Obligations and Government Spending

A growing share of your property taxes goes toward covering retirement benefits for public employees.

Illinois now has approximately $144 billion in unfunded pension liabilities—a gap that continues to grow. This funding shortfall stems from a range of issues, including years of short-term budget decisions that prioritized immediate needs over long-term pension planning.

Today, local governments rely more on property tax revenue to help close that gap—leaving homeowners to carry more of the financial burden.

Rising Home Values and the End of COVID-19 Tax Reductions

During the pandemic, some counties froze assessments or offered small tax breaks. But now, those programs have ended—and home values have surged. That means reassessments are pushing bills even higher, even if your income hasn’t changed.

This is hitting retired homeowners and those on fixed incomes the hardest. If you’re still trying to recover financially, now might be the right time to consider selling your home for cash—before the burden grows. You could get paid what your property is worth in as little as seven days, without repairs, fees, or delays.

When High Property Taxes Become Too Much to Handle

The Emotional and Financial Toll on Homeowners

High property taxes don’t just strain your wallet—they wear you down.

For many Illinois homeowners, falling behind isn’t about irresponsibility; it’s about trying to stay afloat in a system that keeps shifting the goalposts. The stress of mounting bills can affect your mental health, damage your credit, lead to foreclosure, and make it harder to plan for the future.

If you’re at risk of losing your home, you should at least be the one who decides where it goes—and actually benefit from it. Selling to Fantastic Homes, one of the top cash home buyers in Illinois, puts the power back in your hands.

Simply fill out our online form to get your free, no-obligation cash offer today!

Why Selling May Be the Most Practical Solution

Who This Solution Works Best For

Probate or Inherited Property
Managing a loved one’s estate is hard enough—and often brings legal complexity, unexpected costs, and emotional weight, especially among heirs. Selling to a cash buyer avoids months of showings, repairs, and probate-related headaches.

Foreclosure or Tax Delinquency
Falling behind on property taxes or mortgage payments can feel overwhelming—but you’re not out of options. We buy homes facing foreclosure or tax liens, helping you avoid further damage to your credit and get out before it’s too late.

Divorce or Life Transitions
When life changes, you need fast options. Our team helps couples split assets without delay or added stress.

Vacant, Damaged, or Outdated Homes
Whether your property is vacant, in disrepair, or facing code violations, we’ll still make you a fair cash offer. No need to clean, fix, or update anything—we specialize in buying homes other buyers won’t touch.

Why Sell to a Cash Home Buyer in Illinois?

No Repairs, No Agents, No Closing Costs

Forget inspections, commissions, home staging fees, and endless contractor quotes. With Fantastic Homes, you sell directly to us—and you don’t pay us a thing. We’re the ones paying you.

Give it a shot by filling out our online form for a free home evaluation and see just how much you could make. You’ll get your cash offer within 24 hours—no pressure, no obligations.

Fast Closings, Fair Offers, and Zero Stress

We can close in as little as 7 days—but we work on your timeline. Whether you’re ready to sell immediately or need a month or two to tie up loose ends, we’ll wait. And no lowballing—we make fair, transparent offers based on real market data.

Local Experts Who Understand the Illinois Market

We’re a family-owned business, not a big corporate chain—so when we say we understand what Illinois homeowners are going through, we mean it.

We know the neighborhoods, the tax burdens, and the stress that comes with unexpected life changes. That’s why we don’t make one-size-fits-all offers.

We take the time to understand your situation, and every offer we make is tailored with fairness, flexibility, and empathy—because behind every form is a real person, and we never forget that.

FAQs: Why Are Property Taxes So High In Illinois — and What to Know About Selling Your Home Fast

Why are Illinois property taxes so high compared to other states?

Because of over-reliance on local funding, pension debt, and too many taxing bodies. Unlike other states, Illinois puts the financial burden on property owners.

Can selling my house help me avoid future property tax hikes?

Yes. Once you sell, you’re no longer responsible for future tax bills. If you sell before the next assessment, you may avoid thousands in future taxes.

What does a cash home sale actually look like in Illinois?

Simple. We evaluate your home, make an offer within 24 hours, and if you accept, we handle all the paperwork and close fast—no showings, no inspections, no waiting.

Will I need to fix anything or pay off back taxes before selling?

No. We buy homes as-is, and we can handle tax liens or delinquent accounts during the closing process.

What kinds of homes do you buy?

Inherited homes, rental properties, homes in foreclosure, vacant homes, outdated homes, and those with code violations.

What areas of Illinois do you serve?

We buy homes across Illinois, including Lake, Will, Cook, DuPage, Kane, Kendall, and McHenry Counties—and many others.

Get a Free, No-Obligation Cash Offer Today

Sell As-Is — No Cleanups, No Repairs, No Paperwork, No Fees, No Headaches

Avoid the Stress of Rising Taxes and Delays

Reach Out to Our Friendly, Local Team for Fast Help

Don’t wait until your next tax bill hits. Contact Fantastic Homes today for a fast, fair, no-obligation cash offer—and take the next step toward peace of mind.

Just fill out our online form or give us a call at (224) 222-1918.

Related:

Are Property Taxes Included in Mortgage Payments?

How Soon Can You Sell A House After Buying It In Illinois?