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Illinois Property Taxes: What Buyers and Sellers Need to Know
How Property Taxes Work in Illinois
Illinois collects property taxes in arrears meaning you pay this year for last year’s taxes.
- Your 2025 property taxes are paid in 2026.
- Your 2026 taxes won’t be paid until 2027.
Tax bills are usually mailed in June or July. So in June 2026, you’ll receive your bill for 2025 taxes.
You can pay the bill in full or use the installment option (typically four payments). If you have a mortgage with an escrow account, your lender usually handles payment automatically but always verify the bill has been paid.
Look up your taxes online:
I Bought a House Last Year: How Much Do I Owe in Taxes?
This is one of the most common questions. Let’s use an example:
Johnny and Suzy Lincoln closed on their new home on June 30, 2025. Annual taxes are 3,000.
They shouldn’t pay the full $3,000 in June 2026 because they only owned the home for half the year. Here’s what happens:
- At closing, the seller credits Johnny and Suzy $1,500 for the 6 months they didn’t own the home.
- In June 2026, the full $3,000 bill arrives and the buyer (or their lender) pays it.
- Each party pays their share of the year: seller for Jan–June, buyer for July–Dec.
The Title Company handles the proration calculation automatically at closing. They also verify that the previous year’s taxes (2024) were paid. If closing happens in January or February, they prorate carefully to avoid surprises.
Bottom line: All of the calculations are taken care of by the title company.
I Sold a House Last Year: How Much Do I Owe in Taxes?
Nothing! You squared up at closing.
- The title company prorated taxes to the day of closing.
- You gave a credit to your buyer for the portion of the year you no longer owned the home.
- When the full bill arrives in June, the buyer (or their lender) pays it.
You have no further tax obligation after closing.
If you ever have questions about a specific transaction, feel free to give me a call or reach out to your title company. They’ll have the exact numbers.
By the way, there is an open discussion topic about taxes if you have comments. Join the Discussion
Thanks,
George Sykes
Managing Broker, Worth Clark Realty
618-531-4000
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