Illinois Pays Second Highest Number of Property Taxes, New Report Says

According to a new report from personal finance website WalletHub, Illinois pays one of the highest property tax rates in the United States at 2.27%, below only New Jersey at 2.49%.

The average American household spends $2,471 in property taxes on their homes each year, according to the US Census Bureau. The report found that Illinois households can expect to spend $4,419 on the state’s median home value ($194,500) and $4,942 on the nation’s median home value. ($217,500).

“Property tax is the primary means by which governments fund local public services, especially public education,” Steven Lanza, associate professor-in-residence at the University of Connecticut, said in a statement. “Therefore, the tax is a kind of user fee that residents pay voluntarily by their decision to settle in a particular community.”

According to the National Tax Lien Association, more than $14 billion in property taxes go unpaid each year. WalletHub found that while 36% of households are renters in the United States, all households pay property taxes, either directly or indirectly, because property taxes impact rent paid as well as state and local government finances. .

WalletHub also found that Illinois is one of 23 states that does not pay property taxes on vehicles. Meanwhile, neighboring Missouri is one of the highest paying states in vehicle property taxes, with its 2.6% tax rate ranking fourth among the 50 states and the District of Columbia.

The report also found that Illinois had one of the highest property tax rates in the nation since 2012.

The way the property tax system is used to fund schools today makes it impractical, if not impossible, to have a full conversation about property tax without discussing schools, said Jonathan Rosenbloom, a law professor at Albany Law School and Vermont Law School. in a report.

“In many states, property tax revenue represents a huge percentage of school revenue. Across the country, property tax pays 37% of school budgets, which also fuels property values ​​and a cycle to down or up.”

According to the Illinois State Board of Education, local sources, primarily through local property taxes, accounted for 43.5% of elementary and secondary education funding. The state raised more than $19 billion in local property taxes for calendar year 2020. State sources accounted for 31.9% of education funding for the 2020-21 school year and funding federal 24.7%, the most since data began in 1999-2000.

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