Chicago Property Taxes Double Over 10-Year Span

Chicago property taxes are up considerably over just 10 years ago. Recent figures show the city collected $754 million in property taxes in 2010.

In 2020, that figure jumped to more than $1.4 billion, doubling the city’s collection from 2010. A recent report shows homes in the bottom 10-percent of valuation are paying an effective tax rate that’s considerably higher than the highest 10-percent.

Property tax bills appear to be rising faster than incomes and home values. According to an Illinois Policy report, lower income residents and tenants will likely be the ones most affected by a new five-percent property tax increase.

Last October, city leaders voted to raise property taxes by $23 million. That figure wasn’t based on the local inflation rate, but rather on the national inflation rate, which is higher than Chicago’s.

Nearly two million tax bills have already gone out, and payment on the first installment is due March 1. In the past, the property tax system has allegedly benefited commercial landlords over homeowners by undervaluing commercial properties.

Homeowners have then been left with a larger tax burden, while landlords have traditionally been able to pass on any tax hikes to their tenants. Some tenants have recently been priced out of homeownership due to the increase of housing prices, bidding wars and housing shortages.