Illinois housing costs at a glance
| Illinois | |
|---|---|
| Median home value (Zillow) | $290,000 |
| Average effective property tax | 1.79% |
| Typical rate for a new buyer (calculator default) | 2.0% |
| Average homeowners insurance ($300k dwelling) | $2,568 a year |
| 2026 conforming loan limit (one unit) | $832,750 |
Example: median-priced home
Illinois home for $290,000, 20% down, 6.5% 30-year fixed: principal and interest $1,466 + property tax $483 + insurance $214 = about $2,164 a month. Enter your own rate quote and the actual tax rate of the property for a precise figure.
Illinois property tax
Illinois has some of the highest property taxes in the United States, with an average effective rate of about 1.79% and rates of 2%–3% common in the Chicago suburbs. Taxes are paid a year in arrears in two installments. Homeowners can lower the bill with the general homestead exemption and, for older owners, the senior and senior freeze exemptions; file them with your county assessor.
Other Illinois costs
- Transfer tax: the state charges $1 per $1,000 of the price and counties $0.50 per $1,000. Chicago adds its own real property transfer tax, part of which is paid by the buyer.
- Insurance: about $2,600 a year on average for $300,000 of dwelling coverage, largely because of hail and wind storms.
- See also the Illinois paycheck calculator for the flat 4.95% income tax.
Other states
See also the Illinois paycheck calculator and mortgage costs in other states.
Frequently asked questions
What is the property tax rate in Illinois?
About 1.79% of home value on average, among the highest in the country; 2% to 3% is common in many Chicago suburbs.
What is the monthly payment on a median-priced Illinois home?
On a $290,000 home with 20% down at 6.5%, principal and interest are about $1,466; with property tax at 2% and insurance the total is about $2,160 a month.
Why are Illinois property taxes so high?
Local governments, especially school districts, rely heavily on property taxes, and Illinois has thousands of separate taxing bodies.
Are Illinois property taxes paid in arrears?
Yes. The bill you pay this year is for the previous year, usually in two installments.
For information only; not a loan offer. Property tax, insurance and closing costs depend on the specific property and lender.
Sources
- Illinois Department of Revenue – property tax
- FHFA – 2026 conforming loan limits
- NAHB analysis of Census ACS property tax data
- Zillow Home Value Index
- Insurify – home insurance by state
Rules checked: October 2026