Local governments in Illinois are authorized to collect property taxes in real property (land and buildings). Real property is assessed at 33.4% of market value, except in Cook County, where residential is assessed at 10% and commercial and industrial property are assessed at 25%. Tax rates average approximately 8.86% of actual value statewide.
- Illinois does not collect a state tax on personal property. All property other than real estate is exempt from the property tax in Illinois. Thus, all classes of personal property, including machinery, equipment, inventories and intangibles, are exempt.
- Local taxing bodies may abate the property taxes of a new or expanded industrial or commercial facility (up to $3 million spread over as many as 10 years).
- Taxing bodies within Illinois Enterprise Zones may abate property taxes without a dollar limit for the life of the zone (up to 30 years from the time of the zone's creation) for any project in the zone.
- Pollution controls are assessed at salvage value (lacking any economic productivity) rendering them essentially exempt from the property tax.
- Property tax caps are in effect in many Illinois counties, limiting increases in property tax rates to the rate of inflation or 5%, whichever is lower.
- Property tax Tax Increment Financing Zones (TIFs) are used in Illinois to promote development.
- Cook County provides reduced assessment for new and expanded facilities.