‘Real’ property tax rates are finally coming down, but not for city homeowners
In its report, the Chicago watchdog tries to take some of the mystery out of who pays what by looking at specific communities and dividing the estimated market value of different property types by how much their owners have to pay in taxes. This gives the effective property tax rate, an indication of the percentage of the value of your property that you must pay to the tax authorities each year.
In the 2015 tax year, for which taxes were actually paid in 2016, the post-recession recovery generally drove up property values faster than tax levies. Thus, in most regions, effective tax rates have fallen slightly, for example by 3.3% in Naperville, 0.6% in Joliet, 6.8% in Aurora and 2.1% in Elgin.
In Cook County, which taxes residential and commercial properties at different rates, the cuts included 5.3% on homes in Schaumburg and 2.5% on homes in Orland Park, and cuts on commercial properties in 2.3% in Arlington Heights and 4.2% in Evanston. And even in Chicago, where the commercial real estate market has recovered faster than residential prices, the effective tax rate on commercial properties has fallen 13.6%.