Property Exemption Programs

Through different types of exemptions, this program either reduces or defers an increase in the equalized value of your property. The net effect of these exemptions is to lower the assessed valuation to which the tax rate is then applied. As explained below, qualifications and application procedures vary for each program. However, you must own the property and it must be used as your principal residence to qualify for any of these exemptions.

Homestead Limited Exemption

This exemption lowers the equalized assessed value of your property by $6,000. To receive this exemption, you must:

•  Have lived on the property on or before January 1st of the tax year; otherwise, the value may be prorated for the portion of the year that it was owner occupied.
• Have the exemption initiated by the Township Assessor’s Office.

Homestead Improvement Exemption

This exemption defers for four years any increase in the assessment of your property due to an addition or other improvement to your home for which the township assessor would add value.

• A maximum of $25,000 of assessed ($75,000 market) value may be deferred under this program.
• The Township Assessor’s Office initiates and monitors properties for this exemption.
• The property has to be the taxpayer’s principal residence.

Senior Homestead Exemption

This exemption lowers the equalized assessed value of your property by $5,000, and may be claimed in addition to the Homestead Limited Exemption. To receive this exemption, you must:

• Have lived on the property on or before January 1 of the tax year.
• Have reached age 65 during the tax year.
• Apply for the exemption at the Township Assessor’s Office. You will need to bring a copy of the deed to the property and proof of age with you when you apply.
• If property is in a trust, a copy of the trust as well as the trust agreement is needed. The trust agreement must state the beneficiary’s name.

Low-Income Senior Citizens Assessment Freeze Homestead Exemption

This exemption freezes the assessment on your property, but does not freeze the tax rate. This exemption may be claimed in addition to those described above. You need to understand that the actual taxes which you pay, may continue to increase based upon the amounts levied by the taxing bodies where you reside (school, park, village or city, township, etc.).

The filing deadline for this exemption is September 15 of each year. Forms will be mailed to all individuals who have a senior homestead exemption in mid-summer. To receive this exemption, you must:

• A property must be the principal residence of the owner for the beginning of two consecutive years, and the owner must be 65 or older by December 31 of the tax assessment year and meet certain household income requirements.
• Be age 65 or older of the tax assessment year and meet certain income requirements.

Income Requirements: For the 2025 (payable 2026) the maximum household income for this exemption is $65,000.  On December 12, 2025, the Governor signed Senate Bill 642 into law, creating Public Act 104-0452, which increases the maximum household income beginning with the 2026 (payable 2027) year:

After the 2028 year, the maximum income limitation will remain at $79,000 unless it is changed by the General Assembly.

Whose income is included in Maximum Household Income?
By state law, Household Income means the combined income of the members of a household for the calendar year preceding the taxable year.

State law further defines a Household to include:

• The applicant; and
• The spouse of the applicant (even if the spouse resides elsewhere); and
• ​All other persons using the residence of the applicant as their principal place of residence as of January 1 of the year for which the LISCAFHE is sought.​

How is “Income” defined?

By state law, Income has the same meaning as provided in Section 3.07 of the Senior Citizens and Persons with Disabilities Property Tax Relief Act, except that it does not include veteran’s benefits. The amounts that must be reported for each member of the household include:

• Adjusted gross income, properly reportable for federal income tax purposes; plus
• An amount equal to all amounts paid or accrued as interest or dividends during the taxable year;
• An amount equal to the amount of tax imposed by the Illinois Income Tax Act paid for the taxable year;
• An amount equal to all amounts received during the taxable year as an annuity under an annuity, endowment or life insurance contract or under any other contract or agreement;
• An amount equal to the amount of benefits paid under the Federal Social Security Act during the taxable year;
• An amount equal to the amount of benefits paid under the Railroad Retirement Act during the taxable year;
• An amount equal to the total amount of cash public assistance payments received from any governmental agency during the taxable year other than benefits received pursuant to this Act;
• An amount equal to any net operating loss carryover deduction or capital loss carryover deduction during the taxable year; and
• An amount equal to any benefits received under the Workers’ Compensation Act or the Workers’ Occupational Diseases Act during the taxable year.

The application form provides space for all of these categories.

• Please note that this exemption must be renewed annually. The Chief County Assessment Office mails applications to all taxpayers receiving the Senior Homestead Exemption.
• First-time applicants can obtain forms from the Chief County Assessment Office or the Cuba Township Assessor’s Office.

Disabled Persons’ Homestead Exemption

This exemption lowers the equalized assessed value of your property by $2,000 starting in tax year 2007, and may be claimed in addition to the General Homestead Exemption and the Senior Citizens’ Homestead Exemptions, if applicable. This exemption cannot be claimed in addition to the Disabled Veterans’ Standard Homestead Exemption or the Disabled Veterans’ Exemption.

• Have lived on the property on or before January 1 of the tax year.
• Be disabled under the Federal Social Security Act and supply either:
  • A copy of your Illinois Disabled Person Identification Card stating that you are under a Class 2 disability (for each year you qualify); or
  • Proof of Social Security Administration Social Security Benefits. This proof includes an award letter, verification letter, or annual cost of living adjustment.

Whichever you supply, it must indicate that the benefits are for disability; or

• Proof of Veterans Administration disability benefits which would be an award letter showing total 100% disability; or
• Proof of Railroad or Civil Service disability benefits which would be an award letter showing a total 100% disability.
• Please note that this exemption requires annual renewal. The Chief County Assessment Office will mail forms each year to all disabled persons who received the exemption in the prior year.

First-time applicants can obtain forms from the Chief County Assessment Office or your local Township Assessor.

Disabled Veterans’ Standard Homestead Exemption

This exemption provides a reduction in equalized assessed value (outlined below) of a primary residence occupied by a veteran with a disability, or the veteran’s surviving spouse. This exemption can be claimed in addition to the General Homestead Exemption and the Senior Homestead Exemption. However, it cannot be claimed in addition to the Disabled Veterans Exemption (specially adaptive housing) of $100,000, or the Homestead Exemption for Persons with Disabilities.

• A disabled veteran with a 70% or higher service-connected disability will be tax exempt.
• A disabled veteran with at least 50%, but less than 70% service-connected disability will receive a $5,000 reduction in the property’s EAV.
• A disabled veteran with at least 30%, but less than 50% service-connected disability will receive a $2,500 reduction in property’s EAV.

Returning Veterans’ Homestead Exemption

This exemption started in tax year 2007 and lowers the equalized assessed value (EAV) of your property by $5,000 in the year you return from active duty in an armed conflict. It is a one-year exemption and can be claimed in addition to the General Homestead Exemption and any applicable Senior Citizens’ Exemptions. Note that a veteran who dies during his or her active duty service is eligible to receive this exemption. To receive this exemption, please contact your Township Assessor or the Chief County Assessment Office.