Calculating Property Taxes

Taxpayers demand services such as health care, schools, and fire protection. Taxing authorities need money to provide these services.

Taxing authorities such as school districts, park districts, and city councils set budgets and file levies with the County Clerk for real estate tax dollars. The cost (within limits set by state statute) is distributed to all taxpayers in the tax district.

Buyers and sellers in the market create real estate values. The County Assessment Office and Township Assessors study the market and collect information about properties to estimate value. The County Assessment Office has no control over tax rates.

Tax rates for each unit of government are determined by the following equation:

Total of all approved levies
divided by
Total equalized assessed value for the unit of government
Tax Rate

(Levies / EAV = Tax Rate)

Tax bills are calculated as follows:

Your assessment
multiplied by
State multiplier
Your exemptions
multiplied by
Tax rate
Your tax bill

(Assessment X Multiplier - Exemptions X Tax Rate = Tax Bill)