Property taxes. Nobody likes to pay them, but that is part of the obligation when you own real estate.
Outside of New Jersey, the state of Illinois averages the highest property tax rate in the country.
If you are considering a Chicago property investment, one thing you need to keep in mind is the Chicago property taxes that go along with that.
What are these property taxes? How does this work?
Here are some of the biggest things that you need to know.
Consider the County
The first thing that you need to know about Chicago property taxes is that it is going to be based on what county the city is located in. In this case, Chicago is located in Cook County.
So, because the city is located there, Chicago falls under Cook County's jurisdiction. This applies to property tax laws and what certain real estate owners are responsible for.
What are Cook County property owners responsible for? That depends on the answer to this next question.
Residential or Commercial
The next thing that you need to consider is what type of real estate you own in Chicago. The reason that this comes into play is that there are different property tax rates for each.
An example could be that someone that owns residential property in Chicago has to pay about 10% of the assessed value of their property compared to the fair market value. On the other hand, someone that owns commercial property could have to pay about 25% of the assessed value compared to the fair market value.
In other words, if you are planning on buying property to use for commercial purposes in Chicago, expect to have to pay higher property taxes because of it.
Something important when it comes to Cook County is that certain property tax exemptions in this county may not be there for other counties.
An example of this is a homeowner exemption. If you have a home in Cook County that you use as your primary residence, you can get exempt from property tax payments.
There are also exemptions for people with disabilities, people that are veterans, people that are long-time homeowners, seniors, and more. Look into these exemptions and see if there is one that you qualify for before paying your taxes.
Learn More About Chicago Property Taxes
These are the biggest things that you need to know about Chicago property taxes. The most important thing to know is what county the city is located in because this is the jurisdiction and local ordinance that you have to follow.
From there, you need to know what you are using this property investment for and read more about the tax exemptions that you may be eligible for.
Do you want to know more? Message us today to learn how we can help you manage your property in areas such as property taxes.
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