Chicago Homeowners to Pay Majority of Property Taxes

Chicago homeowners will cover a bigger share of the city’s property tax burden this year after a wave of successful appeals sharply reduced commercial property valuations.

Cook County Assessor Fritz Kaegi’s office had initially projected that homeowners would be responsible for about 49 percent of the city’s total tax haul, citing a triennial reassessment showing stronger commercial value growth, Crain’s reported. But after appeals to the Cook County Board of Review, commercial values were cut by 17 percent, compared to just a 1 percent reduction on residential properties, shifting the balance.

The result: homeowners are now expected to cover about 54 percent of the total property tax bill, up from roughly 51 percent last year.

The shift mirrors a pattern seen across Cook County in recent years, where commercial landlords have consistently used the appeals process to claw back assessed values, reshaping the tax landscape.

Commercial property owners filed appeals nearly 64 percent of the time between 2021 and 2023, while homeowners appealed about 27 percent of the time, a study by Cook County Treasurer Maria Pappas found.

For residential owners, the stakes are high. In some South and Southwest suburban communities last year, rising home values coupled with sinking commercial valuations led to median tax bills jumping nearly 20 percent.

The leap last year was the biggest annual percentage increase in nearly three decades. Similar sticker shock could hit Chicago this cycle.

Commercial landlords, represented by groups like the Building Owners and Managers Association of Chicago, argue the Board of Review’s commercial valuation cuts in the appeals process simply correct Kaegi’s “overassessments.” But Kaegi’s office maintains the tug-of-war between his valuations and the appeals board is an outdated dynamic in need of systemic reform that distorts the market and discourages investment.

Cook County Board President Toni Preckwinkle commissioned a study in an effort to improve the system and has recommended more data-sharing and alignment between the assessor’s office and the appeals board to avoid the wild swings between initial valuations and final tax bills.

In the meantime, Cook County property owners will brace for uncertainty. The tax bills, normally sent out in early July, are expected to be delayed due to vendor-related problems.

— Judah Duke