If you’re a senior homeowner in Chicago, your property tax bill may be one of the largest expenses associated with staying in your home.

And here’s something many homeowners don’t realize:

You may qualify for property tax savings that aren’t currently showing up on your bill.

Illinois and Cook County offer several property tax exemptions and relief programs that can reduce the taxable value of a home or help eligible homeowners manage their property tax payments.

For seniors who want to remain in their homes, these programs can be especially important.

Let’s look at the property tax exemptions every Chicago senior homeowner should know about—and a few additional programs that may also help.

First: What Does a Property Tax Exemption Actually Do?

One of the biggest misunderstandings about property tax exemptions is that an $8,000 exemption does not necessarily mean your property tax bill will be reduced by $8,000.

Most exemptions reduce your home’s Equalized Assessed Value, commonly called its EAV.

Your EAV is one of the numbers used to calculate your property taxes.

So when an exemption reduces your EAV, the result may be a lower property tax bill.

Exactly how much you save depends on factors including your local tax rate.

For Chicago homeowners, these exemptions are generally administered through the Cook County Assessor’s Office.

1. The Senior Citizen Homestead Exemption

Let’s start with the big one.

The Senior Citizen Homestead Exemption, commonly called the Senior Exemption, is available to many Cook County homeowners age 65 and older who own and occupy their property as their primary residence.

In Cook County, the Senior Exemption currently reduces the property’s Equalized Assessed Value by $8,000.

Who may qualify?

Generally, you must:

• Be at least 65 years old during the applicable tax year
• Own the property or otherwise have a qualifying legal interest
• Be responsible for the property taxes
• Use the home as your principal residence

If you’re newly eligible, you’ll need to apply.

Once the Senior Exemption has been established on an eligible Cook County property, the Cook County Assessor says it generally renews automatically each year.

Here’s another important benefit:

Cook County seniors receiving the Senior Exemption also qualify for the Homeowner Exemption, so you generally don’t have to submit a separate Homeowner Exemption application when receiving the Senior Exemption.

Bettina’s Tip:
Turning 65 doesn’t automatically mean you should assume the exemption has appeared on your tax bill. Check your exemption history and make sure it’s actually there.

2. The Low-Income Senior Citizens Assessment Freeze

This is one of the most important property tax benefits for qualifying senior homeowners—and also one of the most commonly misunderstood.

It’s usually called the:

Senior Freeze.

Despite the name, it does not freeze your actual property tax bill.

Instead, it freezes the Equalized Assessed Value of your property at a qualifying base-year level.

That can help protect qualifying homeowners from increases in taxable assessed value.

Your actual tax bill can still change because local tax rates can change or because certain improvements are made to the property.

Who qualifies for the Senior Freeze?

You generally must:

• Be at least 65
• Own or have a qualifying interest in the property
• Use the property as your primary residence
• Meet household income requirements
• Meet the program’s other eligibility requirements

And there’s an important change Chicago seniors should know about.

The income limit is increasing.

For tax year 2026, which affects property tax bills payable in 2027, the maximum qualifying household income increases to:

$75,000 or less.

The limit is scheduled to rise again in later years.

That means some seniors who didn’t qualify under the previous $65,000 limit may become eligible.

Don’t confuse the Senior Freeze with the regular Senior Exemption.

They are different benefits.

The regular Senior Exemption reduces your EAV.

The Senior Freeze may help prevent your EAV from increasing above the qualifying frozen level.

Eligible homeowners may be able to receive both.

And don’t forget this:

Unlike the regular Cook County Senior Exemption, the Senior Freeze requires an application each year under the state program requirements.

Put this one on your annual financial checklist.

3. The Homeowner Exemption

Although it’s not specifically a senior exemption, every senior homeowner should know about the Homeowner Exemption.

It’s available to many people who own and occupy their Cook County property as their primary residence.

The exemption reduces the home’s Equalized Assessed Value and therefore may reduce the resulting property tax bill.

Once established, Cook County generally renews the Homeowner Exemption automatically.

And, as mentioned earlier, seniors who qualify for the Senior Exemption generally receive the Homeowner Exemption along with it.

Still, don’t assume.

Check your tax bill.

Mistakes happen, ownership changes happen, and exemptions can sometimes be missing.

4. The Long-Time Homeowner Exemption

Have you lived in your Chicago home for many years and recently experienced a major increase in the property’s assessed value?

You may want to learn about the Long-Time Homeowner Exemption.

This is a less common exemption.

According to the Cook County Assessor, only about 2% of homeowners qualify.

It is designed for certain homeowners who meet income and residency requirements and have experienced a sufficiently large increase in their property’s assessment.

Unlike some exemptions, you typically don’t simply decide to apply on your own.

The Assessor’s Office identifies potentially eligible properties and sends applications to homeowners who may qualify.

This can be especially relevant for longtime homeowners in Chicago neighborhoods where home values have risen significantly.

If you’ve been in your home for decades and your assessment suddenly jumped, don’t automatically assume you have no options.

5. Persons With Disabilities Exemption

Some senior homeowners may also qualify for the Persons with Disabilities Exemption.

This benefit isn’t based on age.

It’s available to qualifying homeowners with disabilities who meet the program requirements and occupy the home as their principal residence.

The exemption currently provides an annual $2,000 reduction in Equalized Assessed Value.

For a senior who qualifies both by age and disability, it’s worth investigating which exemptions can apply to the property.

Don’t assume that receiving one exemption automatically prevents you from receiving another.

Your eligibility depends on the specific program requirements.

6. Veterans With Disabilities Exemption

Chicago seniors who are veterans should also review property tax programs specifically available to veterans.

Cook County offers a Veterans with Disabilities Exemption for qualifying veterans with service-connected disabilities certified by the U.S. Department of Veterans Affairs.

The property tax benefit varies depending on the veteran’s qualifying disability level.

There are also separate provisions involving returning veterans and certain World War II veterans.

If you or your spouse served in the military, don’t overlook veteran-specific property tax benefits simply because you’re already receiving a senior exemption.

7. Planning to Modify Your Home to Age in Place? Know About the Home Improvement Exemption

This one may surprise you.

Suppose you’ve decided:

“I don’t want to downsize. I want to stay right here.”

You may decide to make improvements to your longtime home.

Perhaps you’re adding living space, making structural improvements, or completing renovations that increase the property’s value.

The Home Improvement Exemption can temporarily prevent qualifying improvements from immediately increasing the taxable value of the property.

Cook County says the exemption can apply to as much as $75,000 of added value for up to four years for qualifying improvements.

Even better, Cook County says eligible homeowners generally do not have to submit an application because the exemption is automatically applied to qualifying properties.

This could be particularly useful to homeowners evaluating whether renovating their current home makes more sense than moving.

BONUS: The Senior Citizens Real Estate Tax Deferral Program

This one isn’t technically a property tax exemption—but every senior homeowner should know it exists.

The Senior Citizens Real Estate Tax Deferral Program allows certain qualifying seniors to postpone paying a portion of their property taxes.

Think of it more like a loan than a tax discount.

For the current program, qualifying Cook County homeowners may defer up to $7,500 per year in property taxes.

The deferred amount accrues 3% simple interest, and the state places a lien on the property. The deferred taxes generally become repayable when the property is sold, transferred, or after the homeowner dies, subject to the program’s requirements.

For the 2025 tax year program, applicants needed household income of $75,000 or less and generally had to meet requirements including being at least 65 by June 1, 2026 and having owned and occupied the qualifying property for at least three years.

Important:

This isn’t free money.

Because the amount must eventually be repaid with interest, homeowners should understand the financial consequences before participating.

Consider discussing the program with appropriate financial, tax, or legal professionals before deciding whether it’s right for you.

How Do I Know Which Exemptions I’m Already Receiving?

This may be the easiest—and most valuable—homework assignment you do this week.

Pull out your property tax bill.

Cook County property tax exemptions generally appear on the second-installment property tax bill.

You can also look up your property through the Cook County Assessor’s website and review the property’s Exemption History and Status.

Ask yourself:

Do I see a Homeowner Exemption?

Do I see my Senior Exemption?

Could I qualify for the Senior Freeze?

Am I eligible for another exemption because of disability or veteran status?

If you’re unsure, don’t guess.

Contact the Cook County Assessor’s Office and ask them to review your property’s exemptions.

What If I Was Eligible but Didn’t Receive My Exemption?

This is another important point.

Missing an exemption doesn’t always mean the savings are gone forever.

Cook County has a process called a Certificate of Error that may allow qualifying homeowners to request corrections for certain missing exemptions from prior tax years.

The exact years available and eligibility requirements can change, so check with the Assessor’s Office for your specific property.

That means if Mom is 72 and suddenly realizes her Senior Exemption hasn’t been appearing on her tax bills, don’t simply shrug and assume nothing can be done.

Ask.

There may be a way to correct it.

Why This Matters When You’re Deciding Whether to Stay or Move

As a Seniors Real Estate Specialist®, one of the conversations I want homeowners to have before deciding to sell is:

“What would it actually cost me to stay?”

Property taxes are part of that calculation.

If you’re thinking about downsizing because your monthly housing costs feel too high, first make sure you’re receiving every legitimate property tax benefit available to you.

An exemption may not completely change your financial picture.

But it could change it enough to make staying in your longtime home more manageable.

And if it doesn’t?

Then you have better information to use when comparing:

• Staying in your current home
• Downsizing
• Purchasing a lower-maintenance home
• Moving to a condo
• Exploring a 55+ community
• Moving closer to family
• Relocating elsewhere

Good real estate decisions begin with good information.

My Advice: Make This an Annual Property Tax Checkup

Once a year, take a few minutes and review:

• Your current property assessment
• Your property tax bill
• The exemptions being applied
• Whether your income now qualifies you for a program
• Whether exemption rules have changed
• Whether you need to renew an exemption
• Whether you’re entitled to a benefit you aren’t currently receiving

This is especially important as you enter retirement, because reducing recurring expenses can become increasingly valuable.

Need Help Thinking Through Your Next Chapter?

If you’re a Chicago-area homeowner age 50+ and wondering whether it makes more sense to stay, renovate, downsize, or sell, you don’t have to begin with a For Sale sign.

You can begin with information.

As a Seniors Real Estate Specialist® (SRES®), I help older homeowners and their families explore their housing options and develop a plan that makes sense for their next chapter.

Sometimes that means selling.

Sometimes that means downsizing.

And sometimes the right answer is staying exactly where you are.

If you’d like to talk through your options, I’d be happy to start with a no-pressure conversation.

You can also download my FREE “Downsizing Without the Stress” Guide to help you begin planning at your own pace.

Bettina Yarbrough, SRES®
Chicago Realtor® | Serving Chicago & Surrounding Suburbs
BettinaTheRealtor.com

Your next chapter deserves a plan—and you don’t have to make it alone.

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