Property Taxes

Property Taxes

Business personal property tax was replaced with personal property replacement taxes (PPRT) in 1979.The statewide average effective tax rate is 2.07%. Local Property taxes are the primary source of income for all Illinois school districts. Taxes are levied per $100 of equalized assessed value (EAV) Assessments are based on market value, and vary based on County, and by residential, commercial or industrial use. Tax rates average approximately 7.82 percent of assessed value statewide. Property taxes are assessed for the County, Village, Library District, Township, Elementary School District, High School District, Community College District, and Park District. 

• Illinois does not collect business personal property tax, this was replaced with personal property replacement taxes (PPRT) in 1979.
• All property other than real estate is exempt from the property tax in Illinois. Thus, all classes of personal property, including machinery, equipment, inventories, and intangibles, are exempt.
• Pollution controls are assessed at salvage value for purposes of assessment for ad valorem property taxes.
• Tax Increment Financing Zones (TIFs) are used in Illinois to promote development. There are 17 cities in North Central Illinois that have established TIF districts.  Most of the industrial property in the region is in a TIF zone. 
• Property Tax Collections as percentage of state-local revenue = 23.1%

An Example of your Total Property Tax Bill in North Central Illinois:

Estimated Total Annual Property Taxes

Property Tax Comparison - Effective Business Tax Rate on Industrial and Commercial Development

Data Updated August 2023
Source: smartasset.com/taxes/property-tax-calculators