Figuring out property taxes.

[Tim Sipowicz]

Hello BP. I’m running numbers on a potential buy and hold and when looking at the property tax history, it says $2800 in 2019 but an assessment of $7800. Should I expect to pay that $7800 if I purchase this property? Is the $2800 most likely due to a homeowners exemption? Thanks 

[Brie Schmidt]

Originally posted by @Tim Sipowicz:

Hello BP. I’m running numbers on a potential buy and hold and when looking at the property tax history, it says $2800 in 2019 but an assessment of $7800. Should I expect to pay that $7800 if I purchase this property? Is the $2800 most likely due to a homeowners exemption? Thanks 

 The 2019 taxes are $2800 and that can include a homeowner or senior exemption.  The assessed value of $7800 means the assessor values the property at $78,000 and that is what the taxes are based off of.  Why Chicago drops off the last 0 I don't know.  2021 was a reassessment year so it is important to know what the new assessment is, because your taxes will likely go up but we don't know the 2021 tax rate will Aug 2022.  

To project what your taxes will be you can take the new assessed value * 2.1% or if you don't have that do 80% of the purchase price * 2.1% and that is a good ballpark.  Google cook county treasurer for actual tax bill amounts and history and cook county assessor for the assessed value and exemptions and amounts.  Homeowner and senior exemptions aren't going to change much but a senior freeze will drastically change the taxes and you don't qualify to carry that over