Recent reporting highlights the growing frustration many Cook County homeowners feel about rising property taxes. In the recent race for Cook County Assessor, incumbent Fritz Kaegi saw his weakest support in areas that have experienced some of the largest property tax increases, contributing to the victory of Lyons Township Assessor Pat Hynes.
Overall, taxpayers were asked to pay an additional $872 million in property taxes compared with the previous year. Much of that increase was borne by homeowners in the north suburbs, who accounted for roughly 60% of the new tax burden. Property taxes in those areas rose 3.7%, slightly higher than the 3.1% increase seen in the south suburbs, according to data from the Treasurer’s office.
While Lake County taxes sometimes receive less attention than Cook County, they remain relatively high compared with many parts of the country. Lake County’s effective property tax rate typically falls around 2.1%–2.3% of a home’s market value, depending on the local taxing district.
For many buyers considering a home in Chicago’s North Shore and surrounding North Suburbs, one of the biggest questions isn’t just the purchase price — it’s the property taxes.
Communities like Highland Park, Deerfield, Northbrook, Glencoe, Lake Forest, and Glenview offer strong schools, well-maintained infrastructure, parks, and local services. But those services are funded largely through property taxes, which can sometimes surprise buyers who are new to the area.
Understanding how property taxes work in Illinois — and specifically in Cook and Lake Counties — can help buyers make more informed decisions before they purchase a home.
Why Property Taxes Can Look High in the North Shore/North Suburbs
Property taxes in this region are higher than many parts of the country primarily because local governments rely heavily on property taxes to fund services. These taxes support things such as:
• Public schools
• Park districts and recreation programs
• Police and fire departments
• Libraries
• Local infrastructure and municipal services
In communities across the North Shore and North Suburbs, highly rated school districts are often one of the biggest drivers of property values and school funding makes up a large portion of the property tax bill.
How Property Taxes Are Calculated in Illinois
Illinois property taxes are based on two primary factors:
- The assessed value of the property
- The local tax rate
The assessed value is determined by the county assessor. In Cook County, residential property is generally assessed at 10% of market value. In Lake County, the process differs slightly but still ties closely to estimated market value. Once the assessment is determined, local taxing districts apply their tax rates. These districts include municipalities, school districts, park districts, and other local entities. The combination of these rates determines the final tax bill.
Why Taxes Can Change After You Buy a Home
One common surprise for buyers is that the property tax bill they see before purchasing a home may not stay the same after closing. This happens for several reasons:
Reassessment Cycles
Properties are periodically reassessed to reflect market values. In Cook County, reassessments occur on a three-year cycle by township. Property reassessments in Lake County, Illinois work a little differently than in Cook County, which is why many buyers and homeowners find the system confusing. Lake County follows a quadrennial reassessment cycle, meaning that every property is fully reassessed once every four years. The next full reassessment is expected around 2027. Even though the full reassessment occurs every four years, assessments are still reviewed and updated annually. So while the major reassessment happens every four years, values can still change in between if circumstances warrant it. If the market has changed significantly, the assessed value, and therefore the tax bill, may change as well.
Exemptions
Certain exemptions may apply to the previous homeowner but not the new buyer. One of the most common is the Homeowner Exemption, which reduces the taxable value for owner-occupied homes. Buyers need to apply for this exemption after they purchase their home.
Improvements or Renovations
Major renovations can sometimes trigger reassessments that increase the assessed value of the property.
What Buyers Should Look At Before Purchasing
When evaluating a property, buyers should look at more than just the most recent tax bill. Important considerations include:
• The property’s current assessed value
• Whether exemptions are applied
• The township reassessment schedule
• Comparable tax levels for similar homes in the area
Reviewing these factors helps buyers estimate what the future tax bill may look like, not just what the previous owner paid.
The Escrow Process: How Most Buyers Pay Property Taxes
Most homeowners pay property taxes through their mortgage escrow account.
Each month, the lender collects a portion of the estimated annual property tax along with the mortgage payment. When taxes are due, the lender pays the bill directly.
Because Illinois property taxes are paid in arrears (the bill issued this year reflects the previous tax year), buyers often receive a tax credit from the seller at closing to account for the portion of the year the seller owned the property.
This system can be confusing initially, but it ensures taxes are properly allocated between buyer and seller.
Why Property Taxes Are Only One Part of the Equation
While property taxes are an important financial consideration, they are only one part of evaluating a home purchase.
Communities across the North Shore and North Suburbs offer amenities and services that many buyers value highly — from strong school systems and community resources to access to parks, transportation, and lakefront areas.
Understanding how taxes fit into the overall cost of homeownership helps buyers evaluate the full picture.
The Bottom Line for Buyers
Property taxes in this region can seem complicated at first, but with the right information they become much easier to understand.
Before purchasing a home, buyers should review the tax history, understand the reassessment schedule, and estimate how taxes may change over time.
Doing this early in the process allows buyers to make confident decisions and avoid surprises later.
If you’re considering buying a home on the North Shore or in the surrounding North Suburbs, understanding property taxes is an important step in the process.
A careful review of recent sales, tax records, and local market conditions can help buyers evaluate both the home and the long-term cost of ownership before making a decision.
