Cook County Property Taxes Soar Past Inflation and Wages

Cook County’s property tax burden grew far beyond inflation and wage growth over the past three decades, intensifying pressure on homeowners and businesses and exposing structural cracks in Illinois’ tax system.

A new report from Cook County Treasurer Maria Pappas found property taxes levied across the county climbed to $19.2 billion in 2024, a roughly 182 percent increase from $6.8 billion in 1995. Over the same period, inflation rose 91 percent and wages grew 161 percent — meaning tax bills have steadily eaten up a larger share of household income, according to the Chicago Tribune.

The report, released Monday, pins much of the blame on loopholes in the state’s Property Tax Extension Limitation Law, or PTELL, which was designed to cap annual increases but has been widely circumvented by local taxing bodies. Pappas called on Gov. JB Pritzker and state lawmakers to pursue reforms, warning the current system is unsustainable.

“Illinois in 2025 had the dubious distinction of having the highest residential property tax rate in the nation,” Pappas said, adding that Chicago also leads the country on commercial rates.

The tax burden has been particularly acute in Chicago, where total property taxes from the city, Chicago Public Schools and other local agencies surged 211 percent since 1995 to nearly $8.9 billion, the outlet reported. Suburban Cook County jurisdictions weren’t far behind, with 132 municipalities and districts raising levies 160 percent to $10.3 billion.

Schools are the biggest driver. The report found 153 school districts accounted for nearly 55 percent of all property taxes in 2024, with levies up 189 percent over 30 years. Continued underfunding from the state has forced districts to lean heavily on local property taxes, even as pension obligations and operating costs climb.

Tax increment financing added another layer of complication, as TIF revenues — which are not subject to PTELL caps — have surged more than 1,000 percent since the mid-1990s, reaching over $1.8 billion as districts proliferated across the county.

Elevated and unpredictable tax burdens have long been cited as a drag on Chicago-area dealmaking, complicating valuations and deterring capital, particularly in office and multifamily sectors already facing headwinds, according to the publication.

Pappas’ report lands in an election year, with property taxes poised to be a central issue in the governor’s race. While Pritzker has pointed to increased state funding for schools as a way to ease pressure, according to the outlet, he has also shifted some responsibility back to local districts to restrain levies.

The report offers a familiar menu of fixes — closing PTELL loopholes, consolidating local governments, expanding the sales tax base and revisiting a graduated income tax — but acknowledges the political lift required.

— Eric Weilbacher