Illinois property taxes No. 2, double national average in 2025
Illinois families will pay the second-highest property tax rate in the nation in 2025, spending more than double what the average American family will spend to stay in the same home. That’s driving Illinoisans away.
The average American family will spend $2,969 on property taxes for the average home in 2025, but the average Illinois family will spend $6,285 on it, according to a new report.
Illinois again ranked as the state with the second-highest property tax rate, behind New Jersey, in a new survey by WalletHub. The survey shows Illinois homeowners will pay more than double the national average in property taxes on the median U.S. home value of $303,400.
That translates to Illinois families shelling out 2.07% of the value of their home toward property taxes this year.
While Illinois’ median home value is less than the national median at $250,500, taxes on that home will still be higher than the U.S. average at $5,189.
Illinois is surrounded by states with lower property taxes, a driving factor behind the state’s continued domestic population loss.
A move to Wisconsin, the neighboring state with the next-highest property tax rate, would save an Illinoisan about $1,691 on that $303,400 U.S. median house. A move to Indiana, which boasts the lowest property tax rate among Illinois’ neighbors, would save the homeowner $4,034.
Think property taxes don’t matter because you rent? Wrong. Landlords pass on property tax costs through higher rent, so property taxes can significantly impact the affordability of housing for both homeowners and renters.
In Illinois, a homeowner’s property tax bill is based on two primary factors: the assessed value of the property and the amount of revenue the local taxing districts request to operate the next year.
Schools receive most of the property taxes – nearly two-thirds across Illinois. Illinois also has nearly 7,000 local government units with the power to demand property taxes, far more than any other state.
Over 50% of Illinois voters polled cited high taxes as the main reason they would move out of state if given the chance. Illinois taxpayers contribute the largest percentage of their incomes toward state and local taxes, meaning state and local leaders are creating an incentive to leave.
Illinois lost population for 9 consecutive years before revised Census Bureau estimates for 2023 showed the state population grew because of a massive spike in international migration that continued into 2024. That bump was not all voluntary and might be temporary as international newcomers face the same tax and economic problems long-term residents have decided to face no longer. The state has lost 420,678 residents to domestic outmigration since 2020, according to Census estimates.
With nearly 3-in-5 Illinoisans believing the value of public services they receive are not worth the property taxes they pay, lawmakers should be pursuing structural reforms that will keep Illinoisans – and new arrivals – in Illinois.