Hey everyone, Michael LaFido here! Today, I want to tackle a topic that’s top-of-mind for so many of us, especially if you’re a homeowner in Illinois: property taxes. I just received my own property tax bill in the mail, and let me tell you, digging into the details really opened my eyes. If you’ve ever wondered exactly where all that hard-earned money is going, you’re not alone!
Now, here’s what stood out to me—of all the different allocations in my bill, six—yes, six—different pensions are funded by my property taxes. That’s a big part of why so many people are leaving Illinois for more tax-friendly states like Tennessee, Texas, or the Carolinas. (Did you know there are seven states with no state income tax?) But today, I’m focusing just on property taxes.
Illinois comes in second in the nation for highest property taxes, trailing only New Jersey. And when you look at the numbers, it’s no surprise why. In Chicago, a staggering 80% of property tax revenue goes directly to fund pensions. On my own bill, 71% is earmarked for the public schools—which is great for education, but the pension burden doesn’t go away. Unfortunately, Illinois’ pension systems are only 36% funded, meaning the money coming in just isn’t enough. That shortfall forces property taxes even higher to make up the difference.
If you’ve ever felt overwhelmed or frustrated by your property tax bill, you’re not alone. Want to do something about it? I personally appealed my property taxes a couple years ago and got them lowered significantly (and many attorneys only charge if they’re successful!). If you want advice or a referral, feel free to reach out—I’m always here to help.
Whether you’re thinking about making a move, want a second opinion on selling your home, or just want to understand your taxes better, drop me a line. The spring market is in full swing, summer is approaching, and it’s still a hot seller’s market. Stay informed, keep asking questions, and let’s navigate this together. Take care, everyone!
– Michael LaFido