PRESS RELEASE from the
ILLINOIS POLICY INSTITUTE

CONTACT: Micky Horstman (312) 607-4977

Chicago property tax changes vary wildly by neighborhood
The Illinois Policy Institute found in 30+ Chicago neighborhoods property taxes increased by at least 10%, in 2020-2021

CHICAGO (Aug. 8, 2023) – Cook County property taxes were supposed to be due Aug. 1 for residents and businesses, but the county pushed back the second installment deadline to Dec. 1.

A new report from the Illinois Policy Institute found more than 30 Chicago neighborhoods saw their total property tax burden increase by at least 10% in 2020-2021.

Chicago’s property taxes were extremely volatile in 2020-2021 with increases and decreases in total tax of up to 40% throughout different parts of the city. The most extreme increase was the Lower West Side neighborhood, where total taxes went up 44.7%.

While some parts of the city saw staggering increases, over a dozen neighborhoods saw double-digit decreases in property tax totals.

“These rapid property tax decreases aren’t something to be celebrated. Undesirable metrics, such as rising crime, have severely impacted property values in these areas,” said Josh Bandoch, head of policy at the nonpartisan Illinois Policy Institute. “New polling indicates crime and high taxes as the biggest issues Illinois is facing, likely contributing to the city’s rapid outmigration.”

Chicago’s $48 billion public pension debt is crowding out finances for maintaining and improving city services, including funding for the police. Experts say reforming the pension system will ensure the city stops offsetting its budget deficit with higher property taxes. It could also free up additional spending to support Chicago police officers.

Instead, Mayor Brandon Johnson and his allies have already called for additional tax increases. They include a change to the real estate transfer tax on sales of residential or commercial property, which increases the cost for homeowners and businesses.

“Chicago businesses and residents are at their fiscal breaking point already. Adding more punitive taxes is a surefire way to increase outmigration,” Bandoch said. “We need to make Chicago a place where people are excited to move. And we can’t do that unless Johnson addresses the city’s growing pension debt – the true cause of increasing property taxes.”

Property tax facts:

• Chicago has the second-highest commercial property taxes among large American cities.
• On average, commercial property taxes in Cook County have more than doubled in 20 years. Business owners in the north and northwest suburbs saw 134% property tax hikes, from $12,282 to $28,710. Commercial property tax hikes in the south and southwest suburbs were not far behind.
• Chicago had 23 neighborhoods where median residential property taxes dropped, which likely indicates a significant decrease in home values.
• In the south and southwest Cook County suburbs, the average residential property tax bill went up 127% in 20 years from $2,170 to $4,917.

To read more about Chicago property taxes, visit: illin.is/ChicagoPTax

To read more about Cook County property taxes, visit: illin.is/CookPTax

For interviews or interviews, contact media@illinoispolicy.org or (312) 607-4977.