Property tax bills are calculated using a number of factors which are as follows:
- Fair Market Value or FMV is an estimate of the highest price the property would bring between willing buyers and sellers.
- Assessed value or AV of the property for most types of property equates to 1/3 of the fair market value.
- Equalization Factor or EF is a factor the State of Illinois applies to the assessed value in an attempt to equalize assessment practices throughout the state. Equalization Factor is also known as the township multiplier or county multiplier.
- Various Exemptions are then deducted from the equalized assessed value to yield the taxable assessed value. The exemptions that apply to a property vary according to factors such as use of the property, age of the owner, and owner's income.
- Taxable Assessed Value (EAV) is the value of the property on which taxes are based.
- Tax Rate which is the amount of tax due in terms of a percentage of the tax base is calculated by the County Clerk's office. The rate varies depending on the property’s location and the taxing districts that serve that property.
Formula for calculating taxes for most parcels:
Fair Market Value divided by three equals Assessed Value
FMV/3=AV
Assessed Value times Equalization Factor less Exemptions equal Taxable Assessed Value
((AV x EF) -Exemptions) =EAV
Taxable Value times Tax Rate per $100 of Value equals Tax Amount
(EAV *Rate/100)=Tax
Example Calculation
The tax amount for a property with a $100,000 fair market value (FMV) receiving the homestead exemption of $6,000 with a 1.01 equalization factor (EF) and a tax rate of 7.5 per $100 of assessed value would be calculated as follows:
FMV/3=AV
$100,000/3=$33,333.
((AV x EF) -Exemptions) =EAV
(33,333 x 1.01)-6,000=$27,666.33
(EAV *Rate/100)=Property Tax
$27,666.33 x 7.5 / 100 = $2,074.97
Information on Parcels
Assessment and property tax information is available on line by clicking the lookup button on the Treasurer’s homepage.