Illinois law currently provides taxpayers with four homestead exemptions which may reduce the total equalized assessed valuation by the mandated amount for each exemption prior to the computation of the dollar amount of taxes due. The exemptions are as follows:
1. Homestead Limited Exemption
This exemption will lower the equalized value of the property by a maximum of $6,000. To qualify, you must own and live on the property.
2. Senior Homestead Exemption
If you are the owner of a residential property, occupied it prior to Jan. 1 of the assessment year and turned 65 anytime during the assessment year, your equalized value may be reduced by $5,000 of assessed value.
3. Senior Assessment Freeze:
This exemption freezes applicants qualifying assessed valuation by establishing a base assessment year. This will be used to compute future taxes each year the applicant qualifies. This base assessed valuation will be used in computing the amount of taxes. You must file an annual application and meet age (65+), owner, and annual gross income criteria mandated by statute to continue to qualify.
4. Homestead Improvement Exemption
If you add an assessable improvement or addition to your residence the increase in assessed valuation up to $25,000 may be exempted for up to four (4) years from the date of completion. This request for exemption is initiated by the Township Assessor to the Supervisor of Assessments.
5. Returning Veterans' Homestead Exemption
Beginning in 2007, under 35 ILCS 200/15-167, a returning veteran may be eligible for an exemption that will remove $5,000 of equalized assessed value from their property. Applications are available from the county assessment office and must be made for the year in which the qualifying veteran returns from active duty in an armed conflict. To qualify for the Returning Veterans' Homestead Exemption the veteran must meet the following requirements:
- Be an Illinois resident who has served as a member of the U.S. Armed Forces, Illinois National Guard, or U.S. Reserve Forces.
- Returning from active duty in an armed conflict involving the armed forces of the United States during the assessment year.
- A veteran who dies during his or her active duty service is eligible to receive this exemption.
- Owned or had a legal or equitable interest in the property used as the principal place of residence on January 1 of the assessment year.
- Must be liable for the payment of the property taxes.
This exemption may be claimed only in the year in which the eligible veteran taxpayer returns from active duty in an armed conflict. If a veteran taxpayer receives this exemption, then is again deployed on active duty in an armed conflict and returns again in a subsequent year, the veteran taxpayer is eligible for this exemption again if the other conditions are met.
6. Disabled Persons Homestead
Beginning in 2007, under 35 ILCS 200/15-168, a disabled person may be eligible for an exemption that will remove $2,000 of equalized assessed value from their property. Applications are available from the County Assessment Office and must be filed by the owner of record (or person holding equitable interest) and made each year the taxpayer remains eligible. To qualify for the Disabled Persons' Homestead Exemption the taxpayer must be "unable to engage in substantial gainful activity by reason of a medically determinable physical or medical impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months." Evidence that a taxpayer meets this condition includes:
- A Class 2 (or 2A) Illinois Disabled Person Identification Card from the Illinois Secretary of State's Office.
- Proof of Social Security Administration disability benefits.
- Proof of Veterans Administration disability benefits.
- Proof of Railroad or Civil Service disability benefits.
- An examination by a physician (must meet the same standards as used by the Social Security Administration).
- An eligible taxpayer must occupy the property as their primary residence as of January 1 of the assessment year, must be liable for paying the real estate taxes and must be an owner of record or have a legal or equitable interest in the property as evidenced by a written instrument.
7. Disabled Veterans' Standard Homestead Exemption
Beginning in 2007, under 35 ILCS 200/15-169, a disabled veteran may be eligible for an exemption that will remove $5,000 of equalized assessed value from their property for a veteran with at least a 75% service-connected disability or $2,500 of equalized assessed value from their property for a veteran with at least 50%, but less than 75% service-connected disability. Applications are available from the County Assessment Office and must be filed by the owner of record (or person holding equitable interest) and made each year the taxpayer remains eligible. To qualify for the Disabled Veterans' Standard Homestead Exemption the veteran must meet the following requirements:
- Be an Illinois resident who has served as a member of the U.S. Armed Forces on active duty or state active duty, Illinois National Guard, or U.S. Reserve Forces, and not dishonorably discharged.
- Have at least a 50% service-connected disability certified by the U.S. Department of Veterans' Affairs.
- Must be the owner of record and occupy the house as of January 1 of the assessment year.
- The property must have a total equalized assessed value of less than $250,000 for the primary residence.
An unmarried surviving spouse of a disabled veteran may continue to receive this exemption on his or her spouse's homestead property or transfer the exemption to a new primary residence. A taxpayer may not claim this exemption if they claim the Disabled Veterans Homestead Exemption (35 ILCS 200/15-165) or the Disabled Persons' Homestead Exemption (35 ILCS 200/15-168).
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