Illinois Has The 2nd Highest Property Taxes In U.S

One thing that many people don't think about are all the things you have to pay for when you're a homeowner. When you are renting there are a bunch of financial responsibilities that fall on the landlord rather than the tenant, which makes things much easier on those who are renting. For example, when your HVAC goes out, your pipes burst, insurance, and other costs can quickly bog you down. Although these financial pieces are there, they're not the biggest one to be worried about.

Yes, you may have to pay to have those things replaced, fixed, or there in case of an emergency but there is one financial responsibility that comes with owning a house that many people don't know about or don't talk about. It's property taxes, often times new homeowners are unaware of the fact that they have to pay property taxes as well. For some this isn't as big of deal because the rates are reasonable but in states like Illinois it can be much tougher on the wallet for homeowners.

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Each year, the average American household spends $2,869 on real-estate property taxes plus another $448 for residents of the 26 states with vehicle property taxes. In order to determine who pays the most relative to their state, the personal-finance website WalletHub today released its Property Taxes by State in 2024 report, as well as expert commentary. The report compares home and vehicle taxes across the nation.

Illinois is one of the most expensive states to live in when you think about income tax, sales tax, and other financial factors. So it only makes sense that the property taxes would follow suit, as Illinois comes in the with the second highest rates for property taxes. Illinois has a 2.11% Effective Real-Estate Tax Rate, a $5,960 on Annual Taxes on $281.9K Home, with the State Median Home Value standing at $239,100, and lastly property taxes of $5,055 on Home Priced at State Median Value

One of the most intriguing findings within the study was that Blue States have 29.17 percent higher real-estate property taxes, averaging $3,208, than Red States, averaging $2,483. They also compared the current rates with those in the past for those same states, and Illinois has been on the expensive side for years now. I'm not saying don't buy a house or property in Illinois, just be careful of where and how much because the property taxes can come back to haunt you.