Property Taxes are taxes on residential and commercial property that are based on the property's assessed value. They are among the most significant sources of local government revenue in Illinois and are levied to fund public services such as education, public safety, infrastructure, parks, and other governmental functions. Because property taxes are generally stable and predictable, they provide an important foundation for local government budgets.
Property taxes are the largest single source of state and local government revenue in the United States and are especially important for funding local services such as public education. Their high visibility and sensitivity to rising property values, however, make them politically unpopular, particularly when tax bills increase faster than household incomes. In response, most states have adopted some form of property tax limitation to curb tax growth and provide greater predictability for…
TIF is a tool used by local governments, like cities, towns, or villages, to boost their economies and pay for redevelopment projects in specific areas. Governments do this by taking property tax revenue above a set starting point and reinvesting it back in the same area. The goal is to encourage development that would not happen without this public funding.
A recent report by Cook County Treasurer Maria Pappas shows that Cook County property taxes surged 182% in the 30-year period between 1995 and 2024, rising from $6.8 billion to $19.2 billion. This is far greater than the 91% rate of inflation during that period and much higher than the 161% increase in wage growth (161%). The major drivers of this increase are: Increases in school district levies, which hiked property taxes by over 189% in this period.The failure of the state’s property…
Tax Increment Financing, or TIF, is one of the most widely used—and often misunderstood—economic development tools in Illinois. With approximately 1,488 active TIF districts across 511 municipalities in Illinois as of 2025, TIF plays a significant role in shaping local investment, property tax dynamics, and public finance. This primer explains how Tax Increment Financing (TIF) operates in Illinois, including Chicago; assesses its fiscal impacts on taxpayers and overlying taxing bodies; outlines…
Full value studies estimate the market value of residential and commercial real estate in a taxing district. They provide a snapshot of the value of a taxing district’s property tax base at a point in time. Examining trends in full value can show how market values have changed over time and whether the assessment burden has shifted across different geographic areas and property classes. The full market value of real estate is an indicator of regional economic health, the size of the property…
A statement from the Civic Federation in response to the second installment of the Cook County property tax bills
Illinois’ Property Tax Extension Limitation Law (PTELL) was enacted in the 1990s to slow the rate of growth of local property taxes by capping the annual increases in property tax extensions for non-home rule governments, such as school districts and park districts, to the lesser of 5% or the rate of inflation. In reality, property taxes have grown much faster than inflation, and PTELL has not achieved its intended purpose of limiting property tax growth. This joint report from the Civic…
Property taxes are the primary revenue source for Illinois local governments, funding schools, pensions, and essential services. Maintaining strong property tax collection rates—typically above 95%—is critical for community stability and fiscal health. This report's findings underscore deep structural inequities in Illinois’ reliance on property taxes to fund local services. Without intervention, declining collection rates and widening disparities will continue to undermine the fiscal health of…
This report explains the system and method for how property taxes are levied, calculated and collected in Cook County, Illinois. This is called the tax extension and billing process. Additional Civic Federation primers will explain the Cook County assessment, property tax appeals and tax increment financing (TIF) systems.The purpose of this report is to make the property tax system more transparent and understandable for policymakers, homeowners, renters, business owners, and residents across…
