Understanding Elmhurst Property Tax System for Home Buyers

As a suburb of Chicago, Elmhurst, IL, provides easy access to the bustling city while maintaining a serene and family-friendly environment. The proximity to numerous shopping malls and top-tier schools makes Elmhurst an ideal location for families and professionals. With various family-oriented activities and a strong sense of community, Elmhurst stands out as a wonderful place to call home.

There's something for everyone, from charming historic homes to modern new constructions. As an Elmhurst, IL, real estate agent, I've seen firsthand how this area attracts buyers looking for that perfect community. Property taxes here, like anywhere, can influence your monthly mortgage payments and long-term financial planning. Being well-informed about these taxes helps you make more accurate predictions about the total cost of owning a home in Elmhurst.

Property taxes are determined by the tax rate applied to the assessed value of your property. Local government entities, including the city, county, and school districts, set the tax rate annually. These authorities need funds to provide essential services, such as education, public safety, and infrastructure maintenance.

The first step in calculating your property tax is determining the assessed value of your home. In Elmhurst, the DuPage County Assessor's office evaluates properties. They assess your home's value based on the property's size, age, condition, and comparable sales in the neighborhood. This assessed value reflects a percentage of your home's market value, typically about one-third of the market value.

Once the assessed value is established, it is adjusted by a factor known as the Equalized Assessed Value (EAV). The EAV is used to ensure uniform property tax assessments across different areas. The Illinois Department of Revenue determines the equalization factor, which is applied to the assessed value of your property, to account for any discrepancies in assessment practices across the county. For instance, if your home's assessed value is $100,000 and the equalization factor is 1.2, the EAV would be $120,000. This EAV is multiplied by the local tax rate to determine your annual property tax bill.

There are several common property tax exemptions that you might be eligible for, including the homeowner's exemption, the senior citizen exemption, and the disabled person's exemption. The homeowner's exemption is one of the most widely utilized tax relief options. If you own and occupy your home as your primary residence, you can qualify for this exemption, which reduces the assessed value of your property, thereby lowering your tax bill. The amount of this exemption can vary, but it offers substantial savings for homeowners.

For our senior residents, the senior citizen exemption is valuable. Homeowners aged 65 or older can apply for this exemption, which further reduces the assessed value of their property. Additionally, a senior citizen assessment freeze exemption is available, which can freeze the assessed value of the home at a certain amount, protecting against future increases in property taxes due to rising home values.

Similarly, the disabled person's exemption provides tax relief for homeowners legally recognized as disabled. This exemption reduces the property's assessed value, easing the financial burden on disabled homeowners.

Applying for these exemptions involves a straightforward process. First, you need to fill out the appropriate application forms available from the DuPage County Assessor's office or their website. Along with the forms, you'll need to provide documentation proving eligibility, such as proof of residence, age, or disability status. It's important to note the deadlines for submitting these applications to ensure you receive the exemptions for the current tax year.

In Elmhurst, the total property tax bill is influenced by several local taxing bodies, each of which plays a role in providing essential services to the community. These include the school districts, city government, and county services.

School districts are typically the largest recipients of property tax revenue in Elmhurst. The funds collected support various educational services, from teacher salaries and classroom supplies to building maintenance and extracurricular programs. Several highly regarded school districts serve Elmhurst, and the quality of education provided is a major draw for families moving to the area. Consequently, most of your property tax bill goes towards maintaining and improving these schools.

The city government of Elmhurst also relies on property taxes to fund various municipal services. These include maintaining public parks, libraries, and recreational facilities and providing essential services like police and fire protection, street maintenance, and waste management. The city's budgetary needs directly influence the portion of the tax rate allocated to these services, ensuring that Elmhurst remains a vibrant and well-maintained community.
County services, managed by DuPage County, form another important component of the property tax structure. These include health and human services, judicial and public safety services, and infrastructure development. The county's budget needs are reflected in the property tax rate, ensuring that residents benefit from a well-rounded array of public services.

Each of these authorities sets its budget based on the community's needs and priorities. The combined financial requirements of these entities determine the overall property tax rate for Elmhurst homeowners.

Property taxes are typically billed annually, with payments split into two installments. The first installment is usually due in June and the second in September. These dates can vary slightly each year, so staying informed about the specific deadlines is essential to avoid late fees or penalties.

You can pay your taxes online through the DuPage County Treasurer's website, a quick and easy method for many homeowners. Alternatively, you can mail your payment using the provided tax bill stubs. In-person payments can be made at the DuPage County Treasurer's office or several designated bank locations throughout the county.

If you believe your property has been overvalued and, as a result, your taxes are higher than they should be, you have the right to appeal the assessment. The first step in the appeals process is to review your property's assessment notice, typically sent out in early summer. If you find discrepancies or believe the assessed value is too high, you can file an appeal with the DuPage County Board of Review.

It involves completing an appeal form and providing evidence to support your claim, such as recent sales of comparable properties or an independent appraisal. Generally, you have 30 days from the date of your assessment notice to file an appeal. It's important to adhere to these deadlines to ensure your appeal is considered.

When applying for a mortgage, lenders consider property taxes as part of your monthly housing expense. It means that the amount you owe in property taxes will be included in your mortgage payment calculations, along with principal, interest, and homeowner's insurance. Higher property taxes can increase your monthly mortgage payments, affecting your budget and the price range of homes you can afford.

Research the average property tax rates in the neighborhoods you are considering. This information can be found on the DuPage County Assessor's website or by consulting an Elmhurst real estate agent. Understanding the tax rate will help you estimate the annual property tax bill for homes for sale in Elmhurst, IL, allowing you to make more informed decisions.

I am dedicated to helping you navigate the complexities of the home-buying process. My team of highly experienced agents has a proven track record of delivering exceptional results, ensuring that each client finds the perfect home that fits their needs and budget. To get started in Elmhurst real estate, team up with us at Kelly Stetler Real Estate. Ranked as the top Compass team across DuPage County, we are ready to guide you to success.