Illinois again ranked second for the highest property tax rates in the country in 2021, behind only New Jersey. Illinois homeowners have an average of $ 4,942 in property taxes on a home with a median value of $ 217,500 in the United States, exactly double the national average. This is a tax each year of 2.27% of the value of the house, according to the 2021 state …
Illinois again placed second for highest property tax rates in the nation in 2021, behind only New Jersey.
Illinois homeowners average $ 4,942 in property taxes on a home valued at the median of $ 217,500 in the United States, exactly double the national average. That’s a tax each year of 2.27% of the home’s value, according to the 2021 state rankings by WalletHub.
“The first property tax bill I opened was a sticker shock,” retiree said Jerry R. McDonald, who moved to Springfield in 2012 when he married his lifelong Illinois resident Nancy, wife Nancy. “The difference was about two and a half times what I paid for in central Kentucky. It was very disconcerting. “
It’s the fourth year Illinois ranked second in the WalletHub survey. The new survey found that Illinois property taxes were $ 237 higher than in the 2020 survey.
Illinois is surrounded by states with lower property taxes, a major factor in Illinois’ continued population loss. The state has just seen its worst year of population loss since World War II. A move to Indiana would save an Illinois $ 3,089 in property taxes on that $ 217,500 home, based on WalletHub data. The savings would be $ 915 in Wisconsin, $ 2,831 in Missouri, $ 1,535 in Iowa, $ 3,076 in Kentucky and $ 1,599 in Michigan.
McDonald said since 2012 he has seen his taxes rise too quickly in the Springfield area.
“Our property taxes have increased, by a rough estimate, by about 15%. The state’s finances are in disarray … The pension fund arrears are exhausting the state and the solution … is long term and complicated.
While the nationwide median home value is $ 217,500, the Illinois median home value is lower: $ 194,500. Despite this lower median home value, Illinois is also home to the highest average property taxes: $ 4,419. When each state was ranked based on taxes on its own median home, Illinois came in sixth.
As landlords feel the pressure, the increases are also affecting the 36% of households that rent in the United States, said Stephanie Leiser, senior lecturer in public policy at the Ford School, University of Michigan. If you are renting, she says, your monthly payment likely absorbs some of the landlord’s property taxes.
High property taxes are a problem statewide, but property owners in Cook County have particularly felt the problem lately. The first property tax payment was due March 2 and follows an October report showing Cook County property taxes increased by about thrice the inflation rate from 2000 to 2020.
Pension debt is the source of these high tax rates. Of the nearly $ 94 million current property tax increase for the City of Chicago, $ 42.5 million of this income will be used to fill the funding gaps for pensions. The city’s eight pension funds have accumulated nearly $ 45 billion in debt, more debt than 44 US states. Illinois local governments have retirement debt worth 63 billion dollars that raises property taxes every year.
Chicago Mayor Lori Lightfoot asked cash and underlined the seriousness of the pension problem, but did not propose a specific plan. Towards the end of his term, former Chicago Mayor Rahm Emanuel approved a constitutional amendment to control the pension problems of the city and the state.
Public pension reform received bipartisan support from state lawmakers and the governor in 2013, but a decision in 2015 by the Illinois Supreme Court means that the only way to achieve this for the State of Illinois and local governments is through a amendment. Pension reform that controls future cost increases can ensure a secure retirement for civil servants and protect spending on basic services.
But just as important, pension reform may prevent property taxes from pushing more residents outside of Illinois.