By: Ted Dabrowski and John Klingner
Illinois lawmakers refuse to do anything about the state’s punitive property taxes, so Illinoisans continue to get crushed. Not only with the taxes, but with stagnant home values. Many Illinoisans are being squeezed out of their homes and forced to move elsewhere.
A recent analysis by SmartAsset, a consumer-focused financial information company, finds that six of the top 20 cities with the highest real estate taxes in the nation are located in Illinois, including the top two spots. SmartAsset analyzed the 342 cities across the country with populations greater than 100,000.
Peoria, Illinois led the entire country with the highest effective property tax rate in 2023 at 2.64%. The median tax bill there was $4,455 a year. Rockford came in second, at 2.46% and a median tax bill of $3,452. For contrast, the average tax rate across the 342 cities, weighted by aggregate real estate taxes paid, was 1.04%.
Elgin was 7th in the nation with a tax rate of 2.23%. Aurora was 8th-highest at 2.21%. The other two Illinois cities in the top 20 were Joliet with 2.08% and Springfield at 2.03%.
The SmartAsset data corroborates what ATTOM, another real estate data firm, found last year: that Illinoisans pay the nation’s highest property taxes.
The other states with several cities in the top 20 included Connecticut, New York, New Jersey and Texas. Note that Texas, unlike Illinois and the other top 20 states, doesn’t have an income tax.
Dominating the other end of the scale – cities with the lowest property taxes – was the state of Arizona. Eleven of the 20 lowest taxing cities can be found there with rates ranging from 0.32% to 0.42%.
To help understand how extreme Illinois has become, consider what Peorians would pay if they were able to pay the low rates experienced elsewhere. If Peorians paid the national average tax rate, their median tax bill would be just $1,757 – $2,700 less!
And if Peorians paid the same rate as residents in Colorado Springs, then their tax bills would drop to just $692. Compare that to the $4,455 they pay now.
It’s hard to fathom just how much extra Illinoisans pay for their bloated governments.
If lawmakers want to truly reform Illinois property tax costs – and compete with other states for people and talent – they’d do the following:
- Allow for a constitutional amendment and major reforms to pensions – pension costs are crushing local governments.
- Right-size government salaries and benefits. More than 150,000 state and local government workers and pensioners take in more than $100,000 a year.
- Slash the number of governments, at nearly 7,000, the most in the country.
- Roll back the extreme powers they’ve given Illinois’ public sector unions (think the Chicago Teachers Union and what they do with their bargaining and striking powers).
Until all that happens, expect Illinois to keep topping the list for property taxes…and for Illinoisans to keep leaving because living here is unaffordable.
Read more from Wirepoints:
- Wirepoints’ seven most-read stories of 2024 captured most of what’s wrong with Illinois
- Peoria school district chief could be nation’s ‘Superintendent of the Year?’ A city where less than 1 in 10 black children read at grade level?
- Chicago’s Southland residents are irate about their property tax hikes. Wait till they see how their money is being spent.
- Illinois lawmakers shouldn’t burden taxpayers with Tier 2 pension “fixes” until they know what they’re doing
- Illinois property tax woes continue: ATTOM says Illinoisans pay nation’s highest rate
A largely unasked question is becoming glaring: Is Illinois doing all it should to use artificial intelligence to make government cost less and work better? So far, the evidence says no.
Audio and summary 
If this bill passes, say goodbye to local control over all Illinois parks and expect to see open drug and alcohol use, needles, no sanitation and fire hazards, but no ordinary park users.
Feel like you are being gouged? It is because you are. High taxes and low services, such a deal.
It’s worse – urban blight continues to increase. ‘Urban Praire’ is very much an IL phenom. Most communitites realize treading water economically is as good as it gets. The illegals not sticking around says a lot. It’s sad, but this is what IL Democrats wanted – a dystopian world of big government.
The 6 IL cities listed had an average tax of $5,023.83. I would hardly call that crushing. I was born and raised in IL. My family is here. My job is here. People are leaving IL for weather as are the jobs. If you are leaving Peoria with it’s crippling tax of $4455 for TN’s tax rate of $1716 to save $2739, then you must be extremely poor. I am a moderate democrat with an Associates degree. I am not work, and I am not elite. Just sayin.
You always give up some things and get others resulting in new advantages and new disadvantages. No decision is free of such consequences. Yet we always think living elsewhere will bring total happiness. It never happens!
People don’t move thinking life will be total happiness. They move knowing they are going to pay taxes with the hope they get something measurable in return. You won’t find many people who’ve moved from Illinois in recent years and regret doing so. In fact it’s just the opposite with regret they didn’t make the move sooner.
Okay, I’ll take the optimistic point of view and suggest at least half of those who move to their version of paradise still feel that way at least six months later and maybe even a year later. But, at some point that’s going to start trending downward and result in some form of personal or marital discord and maybe even regret. So, if you took a poll of their satisfaction level some five years later I’d bet maybe a quarter or more will come to regret having moved. I could well be wrong, but guess what—so could you. It’s likely… Read more »
Everyone I know that left wishes they did it years earlier.
Resounding agreement – safer streets, better schools and lower taxes are right across the Illinois border. You can work in Illinois and live in Indiana … they even offer school choice.
Keep in mind that people in general prefer to portray an image of intelligence and happiness with their life and life’s choices. What that means in this context is that most people are disinclined to say or do things displaying what foolish decisions they have made along the way and especially so as regards their current status in life as relatives, neighbors and colleagues would ponder their general aura. No way, José; people like their intellect to be seen as the reason for their successes rather than its failures. In simpler terms such conversations lead toward a higher percentage of… Read more »
That’s an interesting perspective. The article presents statistics to show that 6 Illinois cities are among the highest-taxed in the country. Previous articles show that Illinois is also one of the top states for out migration.
Somehow from that you spin an elaborate fantasy that people might move, but they are really unhappy with that choice. It results in personal and marital discord within 6 months of moving. But they hide all this misery from friends and neighbors because they are concerned about appearing stupid.
We will look forward to future installments of your fairy tale.
Apparently your wife is very agreeable to your every decision or you are unmarried. Mine could have taught Gloria Steinem and Bella Abzug a thing or two about how to overcome being a timid personality. So, yes, marital harmony has its own set of rules at play in every marriage, and what attracts or suffices to please one partner may not the other.
You have just given your powers of psychological analysis another hit. I am a woman. You can ask my husband.
Pardonnez moi, Madam Futhertz.
You spin the move or not move topic as totally or mostly driven by your expected financial outcome. Some others will do likewise, yet many of us CHOOSE to stay, so there are numerous factors that can impact that decision, and to paraphrase what I said elsewhere yesterday any such move allows you some advantages along with some disadvantages. If money is your primary motivator, then that’s fine—for you. Others of a different set of priorities will decide another way, and contrary to what’s often said or implied here they are not dumb simply because they look at what’s more… Read more »
James unfortunately you’re delusional and trying to justify in your mind that what the data says isn’t actually happening or that you’re the one making the right decision ak you can sleep better at night. I currently live in IL but moved to TN for 10yrs. Only reason I came back was my parents who move here. TN was much better state to live in most respects. My coat of living increased significantly. I went from saving lots of money to basically living check to even though my income didn’t change. About 10% of my income goes to state related… Read more »
Gee, I didn’t realize you were an IL licensed mind reader. Good for you. There are so few with that official endorsement, so presumably you are living the high life. Congrats! On a more serious note I essentially agree with your concluding thoughts. The process of educating another person or even yourself is far more difficult than throwing more money. Essentially both sides of that equation, educators and students, have to be truly committed to the cause over an extended period of time. That’s a set of hurdles very hard to achieve. Money has little to do with it except… Read more »
You make a good point that ive been overlooking all this time. Theres no place like Illinois when it comes to marital bliss.
Peoria is a dump with one highest foreclosure rates in the country. The public schools are terrible and the taxes are high. It’s not just the real estate tax, but the sales taxes and all the other fees adding up. Up until recently (when the everything bubble really blew up) leaving state meant not only lower taxes but cheaper housing costs too. It used to be a bargain to leave the state and buy cheaper housing with lower taxes. But now with higher interest rates and insane appreciation everywhere EXCEPT Illinois, it’s no longer a bargain to leave the state… Read more »
I discovered the hard way, that the goal is to get on the outbound train and not to try and time it.
Timing depends on where you are in life. I’m not willing to spend $200k more to live outside Nashville for a similarly sized house and community. Prepandemic it would have cost the same, or maybe even less, with a lower interest rate too. As I go through life, my situation might change, and I might not be as price and interest rate conscious as I am today.
Like many Illinois residents, I can afford to live here comfortably. I think my complaint is the same as that of many residents: the state collects excessively high taxes and fees from us and then spends that money irresponsibly.
High taxes and fees aren’t my main gripe, they are merely a symptom of the disease: the voters who consistently vote for one-party progressive Democrat rule insanity. The Democrats in the state vote for the most whackjob, corrupt or just plain retarded Democrats in the party, and their authoritarian no-dissent iron fist makes living in the state intolerable. I could tolerate an Illinois of a decade ago, at least there was some opposition to Democrats, but now they control every aspect of the state, and they are running it into the ground, on purpose. The real problem is the voters.
Look at ten years, that’s ver $27,000 assuming no further tax increaes and no lost opportunity cost. And then there is the low appreciation of the assest itself, typically in much of IL barely keeping up with inflation. I won’t get into all the other taxes and fees everyday people are forced to pay in IL. A close friend took a loss of $40k on his home to sell it and get out of IL 6 years ago to NC. Financially his networth has already fully recovered as his new home is appreciating at +10%/ year and his taxes are… Read more »
“get out of IL 6 years ago” Six years ago may as well be 60 years ago at this point, hard to make comparisons after Covid’s great sorting and subsequent inflation. I personally think the leave Illinois train has is delayed for now. I believe the Everything Bubble will blow up – Trump even hinted at that the other day in a social media post referencing 1929 – and that will change the landscape entirely. Imagine buying a house anywhere in the country in 2007 or 2008 – it would took a decade or more just to recover on price.… Read more »
Funny how taxes in Illinois never really took a break to recover. You can wait and watch for years as housing prices in certain areas continue to rise, and when you go to pounce you’ll be basically paying the asking price today. Not everyone who buys a home does so for the sole purpose of being a speculator.
But you’re competing with speculators in the market. Look at many properties for sale today, there are so many renovated flips with grey fake wood floors. Housing prices are falling in other places around the country. We’re past the peak, it’s only downhill from here.
I have a friend that moved to TN and tells me that he has an independent fire department that charges a fee to cover protection. If he chooses not pay the fee, he will be charged $10,000 to put out any fire; no tax saving there.
What is the annual fee? i doubt it would be so high as to state no tax savings. I assume if he does not pay then he cannot purchase homeowner’s insurance. Otherwise, go with not paying and let house burn, insurance will cover.
Your friend is either lying or lives somewhere extremely remote. I also lived in TN and have never heard of this.
It is well known that Wirepoints’ audience is very, very downmarket. These are people who get sunk by their Netflix bill going up $0.50.
I hope that’s true. That’s who we care most about.
Didn’t learn a thing from the election, huh? And you think you are the virtuous ones.
“my taxes went up $1000 a year and now my life is ruined” is a poor person complaint. Sorry. Save your money and invest it. Stop spending so much on tattoos and avocado toast.
What the graphic above indirectly points out is the fact the tax rate is driven by expenditures. If you look at historical data even during the housing crash the taxing bodies did not take in less tax money-they just raised rates. If your house was worth half of what it was, they doubled the rate. The ONLY way for the rate to go down is for government to spend less, and that ain’t gonna happen.I paid 1716 for my house with an assessed value of 267,000 in Tennessee. Schools are funded by the state, not at the local level.
“Schools are funded by the state, not at the local level.” And that’s the rub, isn’t it? Most of my real estate tax dollars are at least spent locally in my district. Mismanaged quite a bit but they stay in the district. Springfield has been salivating for YEARS to take Your local tax dollars and spend it as they see fit, for ‘equity’. They think it’s unfair that Richie Rich in Glencoe gets all that good tax money and good schools while Frankie in Ford Heights does not. They’ve already talked about race based formulas to redistribute money to certain… Read more »
Here is what the Illinois constitution says about education. SECTION 1. GOAL - FREE SCHOOLS A fundamental goal of the People of the State is the educational development of all persons to the limits of their capacities. The State shall provide for an efficient system of high quality public educational institutions and services. Education in public schools through the secondary level shall be free. There may be such other free education as the General Assembly provides by law. The State has the primary responsibility for financing the system of public education. (Source: Illinois Constitution.) First. Goal- Free schools. Not free… Read more »
My numbers in Tennessee are similar to yours. The thing is, my Tennesse neighborhood looks very similar to what I left behind in Illinois. The extra money you pay in Illinois taxes gets you nothing.
Hope you don’t live in one those districts where 80 cents of every dollar in property taxes goes to your schools.
Just shut up and pay. Or move as I did to Tennessee four years ago. My net property tax savings now exceed $40,000. These savings supplement our retirement.
We feel that we were forced to flee after I retired. Our children have done the same in the last couple of years but they are young and at the beginning of their careers. Their new states are welcoming them with open arms.
Me too, Tennessee, also 4 years ago. No longer dread the tax bill. Also, found some self-respect by no longer submitting to Illinois evil. No sympathy for those we left behind, perfectly capable of doing the same thing …. leaving. My entertainment comes from the pitiful excuses people give for staying. They act like someone has a gun to their head saying, “Don’t make a move.”
Illinois voters also rarely vote down referendums for schools, libraries & park districts. Some woke municipal board decides it wants to spend $$$$$ for some stupid project and puts it to a vote. My own town has had several of these over the years and they pass overwhelmingly. The voters show up in droves to vote to spend money for new park district facilities, new school buildings, and bigger woker libraries. And residents then complain about their real estate taxes. Or they can be like the fella I work with, who is 100% in favor of confiscatory taxes in zir’s… Read more »
Are the taxpayers getting Value for what they are paying?
Yes! CPS spends $30,0000.00/year on its ‘students’. Can’t make this stuff up!
Can WP find any local official or state rep overly concerned with sky high property taxes? Doubt it – they are to busy grabbing for themselves at the taxpayer trough and pandering to the public unions.
As an example my rental home in Rockford is valued at approx $236K and I pay almost $8,200 in property taxes. So I pay 3.46% of value in taxes without the homeowners exemption. My taxes are almost 50% of rental income. Will not renew the lease this year and hope to find a new tenant and get more in rent or sell it. When I add in insurance and upkeep there is little left in profit. What is disgusting is I paid $184K in 2007 so my appreciation for 17 years is $3,058 per year mostly coming from the last… Read more »
Holy crap. Obscene.
Luckily your fortunes are changing:
https://www.mystateline.com/news/rockford-continues-to-climb-the-ranks-as-one-of-the-nations-hottest-real-estate-markets/
Rockford continues to climb the ranks as one of the nation’s hottest real estate marketsPosted: Dec 19, 2024
Rockford’s housing market has continued booming to close out the year, ranking 2nd in realtor’s hottest housing markets.The ranking comes partly because Rockford boasts the third-lowest median home price among the top 20 markets.
Another reason for the boom was due to Rockford’s housing inventory increase over the past seven months, making it the first stretch of this magnitude in 15 years.
Thanks. That is one reason I’m waiting to see if values increase but as they increase across the board the tax rate will decrease but I will still pay the same or more than the year before. The other reason is I will have to pay depreciation taxes and capitol gain taxes but the latter will not be too much so I will be lucky to keep the purchase price but no more. What scares me is if by a miracle my value goes up newer homes a few blocks away are valued at approx $325-$375K but they pay between… Read more »
The inflated home values today are just a manufactured fell good for everyone to alleviate whatever sting comes when they open up their property tax bill. The key is being comfortable knowing you’ll be able to find a buyer down whatever road. I know people who’ve been trying to sell in a nice appreciated area for the better part of a year, and absolutely no one is interested.Good luck whatever you decide.
Woodstock IL McHenry County has been ~3% of Fair Market Value or higher (near 5%) since 2008.
Woodstock TIF properties survive because their property tax dollars are directed in a caudal-cephalo direction, whereas other ignorant/unsophicated/
Woodstock CUSD taxpayers are rectally fisted to pay for profits of Woodstock TIF and Woodstock CUSD Board favorites.
No wonder Joliet can afford to give away fire engines and hire a city manager that formerly worked her magic in CHI.
Joliet is a lost cause, used the riverboat money to inflate pensions and build a baseball stadium that is a money pit like the Rialto, now it’s caught up with them like Chicago, massive pension debt. So tax the residents for your fiscal mismanagement!
The Illinois Comptroller count of local governments is 8,529, not nearly 7,000.
That’s why a CPS ‘student’ costs $30,000.00/year. For their mathematical ‘Nowledge!’
$30,000.00/year*12 years? Dang! What a return on a simple $360,000.00 ‘investment’ in the future.