The state again had the highest residential property tax rate in the U.S. in 2024, tied with New Jersey.
By LyLena Estabine | Illinois Policy Institute
Illinois remains at the top of the country in homeowner property taxes, tied with New Jersey.
Both states had an average effective rate of 1.88% of home value in 2024, more than double the national average of 0.86%.
That translates to a bill of roughly $5,452 on a house worth the 2024 Illinois median of $290,000. But the whole state isn’t affected evenly.
Residential property taxes are particularly burdensome in counties such as Kendall, McHenry, Lake and DeKalb, all four of which are among the 12 highest-rate counties in the country. Median household property taxes in those counties ranged from to $5,974 to $8,923. On top of income taxes and the highest combined state and local tax rate in the U.S., that’s a hefty bill to manage.
High taxes, particularly property taxes, were a top-two issue for 58.1% of likely Illinois voters in a recent poll. Neighboring states all have lower property tax rates, which can entice people to leave Illinois. In 2024, Illinois lost a net of nearly 12,000 people to Indiana, where the effective property tax rate was only 0.76%. Nearly a net 10,000 left for Wisconsin, with an effective property tax rate of 1.32%.
Illinois property taxes are driven by a combination of local and state decisions. Public schools are funded primarily by property taxes, but school districts are forced to rely so heavily on them in part because the state diverts a growing share of its education spending to pensions.
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