Question 1

How are property tax rates determined in Illinois?

Accepted Answer

Property tax rates in Illinois are set by each taxing district (municipality, school district, park district, library, etc.) based on their annual levy (the amount of tax revenue they need). The rate is calculated by dividing the levy by the total equalized assessed value (EAV) of all property in the district.

Question 2

What is the composite tax rate?

Accepted Answer

The composite tax rate is the sum of all overlapping taxing district rates that apply to a specific property. A typical Illinois property is taxed by 8-12 overlapping districts. The composite rate determines your total tax bill when multiplied by your property's EAV.

Question 3

Why do tax rates vary within the same town?

Accepted Answer

Properties within the same municipality can have different composite rates because overlapping districts (school, park, fire, library) have different boundaries. A home in one school district may have a different rate than a home two blocks away in a different school district.

Property Tax — Tax Year 2027 (payable 2028)i