As a property owner, there are many expenses for which you will be responsible. These include the mortgage, insurance and property taxes. The property tax exemption is annual; it is a dollar amount (varies) that is deducted from your home’s value, based on your situation. In most instances when you claim a homestead exemption, the result is lower taxes.

How does it work?

When you buy a home, you will most likely be receiving a homestead exemption by your county tax office. Illinois grants an exemption automatically, in other states it might have to be applied for yearly. It’s important to confirm your assessment is accurate, so reach out to your local assessor’s office soon after you purchase to check on this. If approved, a homestead exemption may lower the amount of property taxes you pay each year.

How do you know if you are eligible and how to claim?

Exemptions for homestead, over 65 homestead, disabled homestead, disabled veteran are the most common. You must be able to prove ownership and the special groups mentioned must verify their age, military service or veteran status. These papers are reviewed by the tax assessor’s office in the county where the property is located. It may be wise to consult an attorney to ensure that you qualify and get the most benefits from the homestead law.

Key things to note:

• You can’t claim if you aren’t a primary home owner.
• Your vacation or rental home doesn’t qualify.
• Relatives living with you only qualify if they also have ownership on the property.
• You can protest your property valuation.

Learn more about Illinois Homestead Exemptions at Tax.Illinois.Gov.

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