What is the General Homestead Exemption?
According to the Illinois Property Tax Code, “homestead property is entitled to an annual homestead exemption limited, except as described here with relation to cooperatives or life care facilities, to a reduction in the equalized assessed value of homestead property equal to the increase in equalized assessed value for the current assessment year above the equalized assessed value of the property for 1977…”
In simple terms, the Illinois Property Tax Code allows for a benefit called the “homestead exemption” for certain properties. This exemption reduces the assessed value of a homestead property.
To qualify for the General Homestead Exemption, homeowners must meet the following criteria:
- Property ownership and primary residency on the property as of January 1st of the tax year seeking the exemption.
- Only one property can receive this exemption.
Calculating the Homestead Exemption
To better understand the impact of the General Homestead Exemption, let’s consider an example. Imagine your property has an assessed value of $100,000, and you qualify for a $6,000 exemption. In this case, the new taxable value would be $94,000. This reduced value of $94,000 is used to calculate your property tax instead of the original $100,000.
General Homestead Exemption Changes in 2023
The General Homestead Exemption was set at $6,000. However, for the 2023 tax bill (to be paid in 2024), the exemption amount increases to $8,000. This increase in the exemption can provide homeowners with even greater tax relief.
Senior Homestead Exemption Changes in 2023
Apart from the General Homestead Exemption, there is another valuable exemption available to seniors in Lake County. To qualify for the Senior Homestead Exemption, homeowners must meet the following criteria:
- Be 65 years of age or older.
- Own and live in the property as their principal residence.
The Senior Homestead Exemption was set at $5,000. However, in 2023, this exemption amount increases to $8,000, offering seniors additional tax benefits.
How do I apply for a Homestead Exemption?
If you already qualify for one of these exemptions, you do not need to reapply; your eligibility will carry forward. However, if you recently purchased a home or changed your primary residence, you can make changes or apply for the exemption through the Lake County website: www.lakecountyil.gov/156/Tax-Relief
Is the Senior Homestead Exemption the same as the Senior Freeze?
It’s important to note that the Senior Homestead Exemption and the Senior Freeze Exemption are not the same. The Senior Freeze Exemption is specifically for low-income seniors who meet the following criteria:
- Be 65 years of age or older.
- Have owned and occupied the home as their principal residence on Jan. 1 of the past two years.
- Have a total household income of $65,000 or less.
- Apply for the exemption each year.
If you believe you might qualify for the Senior Freeze Exemption, you can find more information on the Lake County website: www.lakecountyil.gov/462/Low-Income-Senior-Citizens-Assessment-Fr
Have more questions about your property tax bill?
If you have additional questions or would like assistance with your property tax bill, feel free to reach out to me. I’d be happy to help you by checking your current exemption status.
Or you can always visit the Lake County Assessor’s Office online: www.lakecountyil.gov/154/Chief-County-Assessment-Office