Illinois Property Tax Exemptions: Homestead, Senior and Veteran Relief

General Homestead Exemption: for residential property occupied by its owner(s) as a principal dwelling place (and certain single-family leaseholds where the occupant is liable for the taxes), the exemption equals the increase in the current equalized assessed value (EAV) over the 1977 EAV, up to $10,000 in Cook County, $8,000 in counties contiguous to Cook, and $6,000 in all other counties. A Homestead Improvement Exemption also exempts up to $75,000 of fair cash value added by a new improvement or rebuilding after a catastrophic event, for four years.

Homestead exemptions are handled by the Chief County Assessment Office (in Cook County, the Cook County Assessor's Office). Depending on the county, some exemptions are granted automatically and others require state forms, such as PTAX-324/PTAX-329 (senior homestead), PTAX-340 (senior assessment freeze, filed every year), PTAX-343 and PTAX-343-R (persons with disabilities, renewed annually), PTAX-341 (returning veterans), PTAX-342 (veteran surviving spouse) and PTAX-323 (home improvement). The senior tax deferral is filed with the County Treasurer on Forms IL-1017 and IL-1018.

Senior Citizens Homestead Exemption: owners (or holders of a legal or equitable interest) 65 or older who live in the home and are liable for the taxes receive a reduction of up to $8,000 in EAV in Cook and contiguous counties, or $5,000 elsewhere. Low-Income Senior Citizens Assessment Freeze: owners 65 or older with total household income of $75,000 or less for tax year 2026 (payable 2027), $77,000 for 2027 (payable 2028), and $79,000 for 2028 and later may have the home's EAV frozen at the base-year value; file Form PTAX-340 every year. Tax bills can still rise with tax rates or improvements.

Standard Homestead Exemption for Veterans with Disabilities: for a veteran with a service-connected disability who owns or leases a single-family primary residence, the EAV reduction is $2,500 for a 30% to under 50% rating, $5,000 for 50% to under 70%, and the first $250,000 of EAV is exempt at 70% or more; for tax years 2024 and later, WWII veterans are exempt regardless of disability level. An eligible unremarried surviving spouse can keep or transfer the exemption under certain conditions (Form PTAX-342). Returning Veterans' Homestead Exemption: a $5,000 EAV reduction for the year a veteran returns from active duty in an armed conflict and the following year. Specially adapted housing bought or built with federal funds for a disabled veteran: up to a $100,000 reduction in assessed value while the veteran, spouse or unmarried surviving spouse lives there. These veteran exemptions cannot be combined with the persons-with-disabilities exemption in the same year.

Homestead Exemption for Persons with Disabilities: a $2,000 annual reduction in EAV for a primary residence occupied by a person with a disability who owns it (or holds a legal or equitable interest) and is liable for the taxes. File Form PTAX-343 with proof of disability, then PTAX-343-R each year, with the Chief County Assessment Office. It cannot be combined in the same year with the specially adapted housing exemption or the Standard Homestead Exemption for Veterans with Disabilities.

Senior Citizens Real Estate Tax Deferral Program: homeowners 65 or older who meet income and other requirements may defer taxes on their principal residence; the state pays the taxes and recovers them with interest when the property is sold or transferred, secured by a lien, and the maximum deferral (including interest and lien fees) is 80% of the owner's equity. Apply through the County Treasurer (Forms IL-1017 and IL-1018). A Natural Disaster Homestead Exemption covers the increased EAV of a home rebuilt after a widespread natural disaster in 2012 or later (Form PTAX-327, filed yearly).