Cook County Releases New Tax Rates on Commercial and Residential Real Estate

The Cook County Clerk recently released new, increased tax rates for commercial and residential real estate for property in the City of Chicago. The average Chicago residential real estate owner will see tax rates increase by an average of 10 percent while rates for commercial real estate will increase by an average of 9.3 percent. Many already anticipated the huge tax increases as both the city and its school system imposed a multi-year tax increase to make up for shortages in worker pension funds.

In the suburbs, commercial tax rates will rise 3 percent on average in the south and actually decrease 4.2 percent on average in the northern suburbs. Residential property tax rates will rise 6.5 percent in the north suburbs and 3.9 percent in the south suburbs. The issues over property tax increases are likely to become a focal issue in the upcoming race for governor in 2018.

On average, the typical single-family home or condominium homeowner with a market value of $224,500 in Chicago will see their real estate taxes rise to $3,996.34, an increase of $363.15 over the previous year. For commercial real estate, taxes are expected to rise from the previous year’s total of $12,369.12 to $13,519.48 for 2016 to a property with an average market value of $270,000.

Cook County Tax Rate Calculation

According to the Cook County Clerk’s summary on the increase, “Taxes are calculated by dividing the amount of money each taxing district has requested in their levy by the total taxable revenue within each district. A taxing agency or a district is a body of government such as a school district, library, or municipality, which levies real estate taxes. The taxes of all districts that service a particular property are added to create the composite tax rate available to each property.”

The summary goes on to explain the overall increase in the City of Chicago is due to a $109 million levy increase by the Chicago Board of Education. A $272 million increase was also approved by the Illinois State Legislature to pay for the increase in teacher pensions and retirement benefits.

Highest Real Estate Tax Rates in Cook County

●      Village of Ford Heights - 38.591 percent

●      Village of Park Forest - 35.872 percent

●      City of Chicago Heights - 34.182 percent

Lowest Real Estate Tax Rates in Cook County

●      Village of Barrington - 6.520 percent

●      Village of South Barrington - 6.645 percent

●      Village of Northfield - 6.713 percent

Free Consultation

If you need an attorney to aid in a real estate tax appeal, negotiating and closing commercial or residential real estate or drafting and negotiating a lease for your business, contact Hauert Law Office.  The Hauert Law Office represents clients in all aspects of real estate transactions, including buyers, sellers, landlords, tenants, developers, and investors. For your free consultation, contact our office.