Austin, West Garfield Park and North Lawndale residential property values were reassessed earlier this year, meaning some homeowners will pay more on their 2025 property tax bills than they did in 2024. They’ll be in good company. Cook County property taxes rose an average of 4% this year, marking the 30th consecutive year of hikes, a Cook County Treasurer’s Office analysis showed.
As property taxes rise, some policymakers and county officials are advocating for a new way to ease their financial burden: A circuit breaker program that serves low-income homeowners.
Economists classify property taxes as regressive because lower-income households pay a higher share of their income toward the tax compared with wealthier counterparts. In Illinois, the property tax system is based on assessed home value, meaning the 1.3 million homeowners who will pay more next year won’t all see the same percent increase on their bill. It also means property tax amounts are disconnected from homeowners’ ability to pay.
The result? Lower-income homeowners struggle to keep up with property tax payments.
The 19 highest tax rates in Cook County are in Chicago’s south suburbs, where the population is primarily lower-income Black residents, according to the treasurer’s office. This year, the area’s median bill grew nearly 20%. Fewer than a quarter of reassessed homes across the county saw their bills go down.
On average, middle-class Illinois homeowners spend 6% of their income on property taxes. Millionaires spend just 1%.
“Simply put, disparities of this magnitude are not fair or equitable, and we need to ensure we’re supporting the people who make our state run: the firefighters, teachers, social workers, and other working-class people who would benefit from desperately needed property tax relief,” Cook County Board of Review Commissioner George Cardenas told Austin Weekly News in an email. “By easing property tax burdens on working-class and lower-income households, people are better able to invest in their futures.”
A circuit breaker program could relieve this disparity by providing an income tax credit for property taxes that exceed a certain percentage of the homeowner’s income. Depending on the program, renters may also be eligible to earn credit.
Right now, many Americans are struggling with the cost of housing and property taxes contribute to that, said Brakeyshia Samms, a policy analyst at the Institute on Taxation and Economic Policy.
“A lot of families are overloaded, and circuit breakers can kick in and help mitigate that problem by rebating a share of income for the property taxes,” she said. “These credits really are one of the most effective tools that promote property tax affordability.”
In 2012, Illinois implemented a circuit breaker program that provided credits to qualifying seniors and people with disabilities. The state legislature did not approve funds for the program for the 2013 fiscal year, ending the program.
More than half of U.S. states administer circuit breakers of some kind, although they vary widely in size and scope. Thirteen states make this type of credit available to working-age homeowners.
County officials are working with legislators and community groups to draft a program proposal for next year’s legislative session, said Cook County Assessor Fritz Kaegi. The state will have to decide on income criteria, home value cutoffs, timing and structure of the program.
“We want to be a leader in making sure that property taxes are fair to everyone,” Kaegi said. “It’s a good idea for the state to incorporate a circuit breaker program that provides relief for when bills increase, for the people who need it most.”