Bought a Chicago home and want to lower your property tax bill fast? If you live in the home as your primary residence, you may qualify for Cook County’s Homeowner Exemption. The process is straightforward once you understand the January 1 rule, what to file, and when. This guide walks you through eligibility, the step-by-step application, documents you need, and what to do if you missed a year. Let’s dive in.
What the Homeowner Exemption does
Cook County’s Homeowner Exemption reduces your home’s Equalized Assessed Value by $10,000 for an owner-occupied primary residence. Your actual tax savings depend on your local tax rate. In simple terms, the savings are roughly the exemption amount multiplied by your local rate. See the Assessor’s overview of the exemption and savings logic for details on how it works and where it appears on your bill. Cook County Assessor: Homeowner Exemption and Assessor overview.
Important timing note: exemptions appear on the second‑installment property tax bill, not the first. Assessor FAQ
Who qualifies in Chicago
- You must own the property or be contractually responsible for the taxes, and you must occupy it as your principal residence on January 1 of the tax year. Assessor eligibility
- If you purchased after January 1, you typically do not qualify for that year. You usually become eligible the next tax year. For newly built homes not ready on January 1, the Assessor may prorate in certain cases. Assessor guidance
- If your name is not yet on the recorded deed, the Assessor can accept alternate documents that show tax liability. Assessor documentation
Transfer and notice rules
If the prior owner had a Homeowner Exemption, Illinois law requires the Assessor to mail you a notice after the transfer. The exemption remains for the year of transfer and will be canceled after that year unless you reapply and qualify. Watch for that notice and plan to file in the next cycle. Illinois statute 35 ILCS 200/15-170
About renewals: Cook County’s current practice is to auto‑renew many exemptions, including the Homeowner Exemption, and issue notices if action is needed. Because the statute and county operations evolve, follow the Assessor’s current announcements and file your first application as a new owner at that address. Assessor renewal updates
How to apply step by step
- Confirm eligibility
- You owned and occupied the home on January 1.
- Check your property’s exemption history for your PIN and see what is already applied. Assessor Homeowner Exemption
- Gather documents
- Photo ID and proof of occupancy for the tax year. If your ID address does not match the property, add a bank or utility statement, pay stub, Social Security award letter, or your Cook County voting record plus the occupancy affidavit.
- Proof of property tax liability, usually the recorded deed. If not yet recorded or held in a trust or co‑op, provide acceptable alternatives. Assessor documentation list
- Apply during the filing window
- File online through the Assessor’s application system or submit by mail using the forms on the Homeowner Exemption page. File here
- The filing period typically opens in spring. For example, the 2025 deadline was April 21, 2025. Always confirm the current deadline each year. Cook County filing deadline announcement
- Track status and watch your bill
- Check your application status online and expect the exemption to show on the second‑installment bill. If it is missing after second‑installment bills are issued, contact the Assessor or Treasurer. Assessor FAQ
- Fix a missed year
- If you qualified in a prior year but did not receive the exemption, submit a Certificate of Error for eligible years. Certificate of Error info
Document checklist
Use this quick list to speed things up:
- Photo ID: Illinois driver’s license or ID, City of Chicago ID, matrÃcula consular, passport, military ID, or permanent resident card.
- Proof of occupancy: utility or bank statement, pay stub, Social Security award letter, or Cook County voting record, plus the occupancy affidavit if needed.
- Proof of tax liability: recorded deed. If not recorded or unique ownership applies, submit deed copy, contract for deed, trust agreement, stock certificate for a co‑op, or an occupancy agreement.
- Co‑ops: use the co‑op form and follow submission instructions to [email protected] or mail. Co‑op instructions
Special cases to know
- Cooperatives: Co‑op owners have a different application path and paperwork. Assessor co‑op guidance
- New construction: Timing and proration can differ. Contact the Assessor if your home was not ready on January 1. Assessor guidance
- Name and recording: Confirm how your name appears on the deed at closing. If your deed recording is delayed, be ready to provide alternate proof of liability.
First‑year timeline
- At closing: Confirm your deed details and mailing address for tax bills.
- January 1 test: You must be the owner‑occupant on January 1 to claim that tax year.
- Spring: Apply online or by mail during the filing window. Apply via the Assessor
- Summer or fall: Look for the exemption on your second‑installment bill. When exemptions appear
Common mistakes to avoid
- Missing the January 1 rule. If you bought after January 1, plan for eligibility next year.
- Waiting for the first‑installment bill. Exemptions show on the second installment.
- Assuming it continues automatically after a purchase. As a new owner, file your first application if you qualify.
- Submitting ID without matching occupancy proof. Add a utility or bank statement or other acceptable document.
Buying or selling in Chicago and want a smooth, tax‑smart plan? Our team helps you structure your move, prepare your paperwork, and stay on top of deadlines. Reach out to Rafi Sahakian for one‑on‑one guidance.
FAQs
Who qualifies for the Homeowner Exemption in Chicago?
- You must own or be contractually responsible for the property taxes and occupy the home as your principal residence on January 1 of the tax year. Eligibility details
I bought my Chicago home after January 1. Can I claim it this year?
- Generally no. The key date is January 1. You typically become eligible the next tax year unless new construction proration applies. Assessor guidance
Where will I see the exemption on my Cook County tax bill?
- On the second‑installment bill. First‑installment bills do not include exemptions. Assessor FAQ
How do I apply online for the Cook County Homeowner Exemption?
- Start at the Assessor’s Homeowner Exemption page to access the online application and forms. Apply here
The prior owner had the exemption. Do I need to reapply?
- Yes, after the transfer year. By statute, the exemption remains through the year of sale and is canceled after unless you reapply and qualify. Illinois statute
I missed last year’s exemption in Chicago. What can I do?
