Tax Exemptions
What is the Illinois Homestead Exemption
Program and who qualifies?
Through seven different types of exemptions,
this program either reduces or defers an increase in the
equalized value of your property. The net effect of these
exemptions is to lower the assessed valuation to which the tax
rate is then applied. As explained below, qualifications and
application procedures vary for each program. However, you must
own the property and it must be used as your principal residence
to qualify for any of these exemptions.
General Homestead Limited Exemption
For tax year 2008 (payable in 2009) this exemption increases is
$5,500. For tax year 2009 (payable in 2010), this exemption is
$6,000. To receive this exemption, you must:
-
Have lived on the property which is your
principal residence on or before January 1st of the tax
year; otherwise, the value may be prorated for the portion
of the year that it was owner occupied.
-
Have the exemption initiated by the
Township Assessor's Office.
Homestead
Improvement Exemption
This exemption defers for four years any increase in the
assessment of your property due to an addition or other
improvement to your home for which the township assessor would
add value.
-
A maximum of $25,000
of assessed value may be deferred under this program.
-
The Township
Assessor's Office initiates this exemption.
-
The property has to
be the taxpayer's principal residence.
Senior Homestead
Exemption
This exemption lowers the equalized assessed value of your
property by $4,000 starting in tax year 2008 (previously
$3,500), and may be claimed in addition to the Homestead Limited
Exemption. To receive this exemption, you must:
• Have lived on the property which is your principal residence
on or before January 1st of the tax year; otherwise, the value
may be prorated for the portion of the year that it was owner
occupied by a senior citizen.
-
Have reached age 65 during the tax year.
-
Apply for the exemption at the Township
Assessor's Office. You will need to bring a copy of the deed
to the property and proof of age with you when you apply. If
the property is held in trust, you will also need a copy of
the trust agreement indicating the beneficiary.
-
This exemption no longer requires an
annual renewal filing (effective for 2005 tax year).
-
Please contact your township assessor's
office before going in to apply to verify that you have all
required documentation.
Senior Citizens Assessment Freeze
Homestead Exemption
This exemption freezes the assessment on your
property if your total household income is $55,000 or less.
This exemption may be claimed in addition to
those described above. This exemption does not freeze your tax
rate; you need to understand that the actual taxes which you pay
may continue to increase based upon the amounts levied by the
taxing bodies where you reside (school, park, village or city,
township, etc.).
The filing deadline for this exemption is in
July of each tax year (the actual due date may vary from year to
year). Forms will be mailed to all individuals who have a senior
homestead exemption in mid-May. To receive this exemption, you
must:
-
Have fulfilled a property residency
requirement as explained on the application form.
-
Be age 65 or older.
-
Have a maximum household income of
$55,000. This household income includes that of all persons
using the property as their principal dwelling place for two
January 1st.
-
Please note that this exemption must be
renewed annually. The Chief County Assessment Office mails
applications to all taxpayers receiving the Senior Homestead
Exemption.
-
First-time applicants can obtain forms
from your local township assessor’s office.
-
Your completed application must be
notarized.
Please contact your township assessor's office
before going in to apply to verify that you have all required
documentation.
Disabled Persons'
Homestead Exemption
This exemption lowers the equalized assessed value of your
property by $2,000 and may be claimed in addition to the
Homestead Limited Exemption and the Senior Citizen's Homestead
Exemptions, if applicable. This exemption cannot be claimed in
addition to the Disabled Veterans' Standard Homestead Exemption
or the Disabled Veterans' Exemption of $70,000; you can only
receive one of these exemptions and, if you are a veteran, you
should choose to apply for the one most beneficial to you. To
receive this exemption, you must:
-
Have lived on the property on or before
January 1st of the tax year.
-
Be disabled under the Federal Social
Security Act and supply either:
-
a copy of your Illinois Disabled Person
Identification Card stating that you are under a Class 2
disability (for each year you qualify); or.
-
Proof of Social Security Administration
Social Security Benefits. This proof includes an award
letter, verification letter, or annual cost of living
adjustment (COLA) - This paperwork must be issued in the tax
year for which you are applying. Whichever you supply, it
must indicate that the benefits are for disability; or
-
Proof of Veterans Administration
disability benefits which would be an award letter showing
total 100% disability; or
-
Proof of Railroad or Civil Service
disability benefits which would be an award letter showing a
total 100% disability.
-
Please note that this exemption requires
annual verification of eligibility. The Chief County
Assessment Office will mail the appropriate forms each year
to all disabled persons who received the exemption in the
prior year.
First-time applicants can obtain forms from your local
township assessor’s office.
-
Your completed application must be
returned to your local township assessor:
Disabled
Veterans' Standard Homestead Exemption
This exemption may be claimed in addition to the General
Homestead Limited Exemption and the Senior Citizen's Homestead
Exemptions, if applicable; however, it cannot be claimed in
addition to the Disabled Veterans' Exemption of $70,000, or the
Disabled Persons' Homestead Exemption. To receive this
exemption, you must:
-
Be a Lake County, Illinois resident and
have served in the United States Armed Forces, The Illinois
National Guard, or U.S. Reserve Forces, and have received an
honorable discharge.
-
Have at least a 50% service-connected
disability certified by the U.S. Department of Veterans'
Affairs.
-
Have owned and occupied the property as
the primary residence on or before January 1st of the tax
year.
-
Supply documentation as required by the
instructions on the back of the form.
-
Have a total equalized assessed value
(EAV) of less than $250,000
-
An unmarried surviving spouse of a
disabled veteran can continue to receive this exemption on
his or her spouse's homestead property or transfer the
exemption to a new primary residence. To qualify, the
surviving spouse must meet the following requirements:
-
Sell the disabled veteran's previous
homestead property before transferring this exemption to his
or her new primary residence.
-
Own and occupy the property as a primary
residence and hold a legal or beneficial title to the
property on January 1 of the assessment year.
-
Have a total equalized assessed value
(EAV) of less than $250,000.
Please note that this exemption will require
annual verification of eligibility. The Chief County Assessment
Office will mail the appropriate forms each year to all disabled
veterans or their surviving spouses who received the exemption
in the prior year.
-
First-time applicants can obtain forms
from your local township assessor’s office.
-
Your completed application must be
returned to your local Township Assessor.
-
Information on the Disabled Veterans'
Exemption ($70,000) through the Illinois Department of
Veterans' Affairs
Returning
Veterans' Homestead Exemption
This exemption started in tax year 2007 and lowers the equalized
assessed value of your property by $5,000 in the year you return
from active duty in an armed conflict. It is a one-year
exemption, and can be claimed in addition to the General
Homestead Limited Exemption and any applicable Senior Citizen's
Exemptions. Note that a veteran who dies during his or her
active duty service is eligible to receive this exemption. To
receive this exemption, you must:
If you were discharged from active duty,
If you are still on active duty,
The documents must state that you are returning from an armed
conflict involving the U.S. armed forces within the tax year for which you are
requesting the exemption.
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