PROP TX-HOMESTEAD EXEMPTION

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4626

Introduced 2/3/2026, by Rep. Joe C. Sosnowski

SYNOPSIS AS INTRODUCED:

35 ILCS 200/15-175

Amends the Property Tax Code. Provides that, for taxable years 2026
and thereafter, the amount of the general homestead exemption is the sum
of: (i) $10,000 in counties with 3,000,000 or more inhabitants, $8,000 in
counties that are contiguous to a county of 3,000,000 or more inhabitants,
and $6,000 in all other counties; plus (ii) the difference between the
equalized assessed value for the property in the current taxable year and
the equalized assessed value for the property in the base year. Effective
immediately.
LRB104 16202 HLH 31185 b

A BILL FOR

HB4626
LRB104 16202 HLH 31185 b
1

AN ACT concerning revenue.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Property Tax Code is amended by changing
5
Section 15-175 as follows:

6

(35 ILCS 200/15-175)
7

Sec. 15-175.
General homestead exemption.

8

(a) Except as provided in Sections 15-176 and 15-177,
9
homestead property is entitled to an annual homestead
10
exemption limited, except as described here with relation to
11
cooperatives or life care facilities, to a reduction in the
12
equalized assessed value of homestead property equal to the
13
increase in equalized assessed value for the current
14
assessment year above the equalized assessed value of the
15
property for 1977, up to the maximum reduction set forth
16
below. If however, the 1977 equalized assessed value upon
17
which taxes were paid is subsequently determined by local
18
assessing officials, the Property Tax Appeal Board, or a court
19
to have been excessive, the equalized assessed value which
20
should have been placed on the property for 1977 shall be used
21
to determine the amount of the exemption.
22

(b) Except as provided in Section 15-176, the maximum
23
reduction before taxable year 2004 shall be $4,500 in counties

HB4626
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LRB104 16202 HLH 31185 b
1
with 3,000,000 or more inhabitants and $3,500 in all other
2
counties. Except as provided in Sections 15-176 and 15-177,
3
for taxable years 2004 through 2007, the maximum reduction
4
shall be $5,000, for taxable year 2008, the maximum reduction
5
is $5,500, and, for taxable years 2009 through 2011, the
6
maximum reduction is $6,000 in all counties. For taxable years
7
2012 through 2016, the maximum reduction is $7,000 in counties
8
with 3,000,000 or more inhabitants and $6,000 in all other
9
counties. For taxable years 2017 through 2022, the maximum
10
reduction is $10,000 in counties with 3,000,000 or more
11
inhabitants and $6,000 in all other counties. For taxable
12
years 2023
through 2025

and thereafter
, the maximum reduction
13
is $10,000 in counties with 3,000,000 or more inhabitants,
14
$8,000 in counties that are contiguous to a county of
15
3,000,000 or more inhabitants, and $6,000 in all other
16
counties.
For taxable years 2026 and thereafter, the amount of
17
the reduction is the sum of: (i) $10,000 in counties with
18
3,000,000 or more inhabitants, $8,000 in counties that are
19
contiguous to a county of 3,000,000 or more inhabitants, and
20
$6,000 in all other counties; plus (ii) the difference between
21
the equalized assessed value for the property in the current
22
taxable year and the equalized assessed value for the property
23
in the base year.
If a county has elected to subject itself to
24
the provisions of Section 15-176 as provided in subsection (k)
25
of that Section, then, for the first taxable year only after
26
the provisions of Section 15-176 no longer apply, for owners

HB4626
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LRB104 16202 HLH 31185 b
1
who, for the taxable year, have not been granted a senior
2
citizens assessment freeze homestead exemption under Section
3
15-172 or a long-time occupant homestead exemption under
4
Section 15-177, there shall be an additional exemption of
5
$5,000 for owners with a household income of $30,000 or less.
6

(c) In counties with fewer than 3,000,000 inhabitants, if,
7
based on the most recent assessment, the equalized assessed
8
value of the homestead property for the current assessment
9
year is greater than the equalized assessed value of the
10
property for 1977, the owner of the property shall
11
automatically receive the exemption granted under this Section
12
in an amount equal to the increase over the 1977 assessment up
13
to the maximum reduction set forth in this Section.
14

(d) If in any assessment year beginning with the 2000
15
assessment year, homestead property has a pro-rata valuation
16
under Section 9-180 resulting in an increase in the assessed
17
valuation, a reduction in equalized assessed valuation equal
18
to the increase in equalized assessed value of the property
19
for the year of the pro-rata valuation above the equalized
20
assessed value of the property for 1977 shall be applied to the
21
property on a proportionate basis for the period the property
22
qualified as homestead property during the assessment year.
23
The maximum proportionate homestead exemption shall not exceed
24
the maximum homestead exemption allowed in the county under
25
this Section divided by 365 and multiplied by the number of
26
days the property qualified as homestead property.

HB4626
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LRB104 16202 HLH 31185 b
1

(d-1) In counties with 3,000,000 or more inhabitants,
2
where the chief county assessment officer provides a notice of
3
discovery, if a property is not occupied by its owner as a
4
principal residence as of January 1 of the current tax year,
5
then the property owner shall notify the chief county
6
assessment officer of that fact on a form prescribed by the
7
chief county assessment officer. That notice must be received
8
by the chief county assessment officer on or before March 1 of
9
the collection year. If mailed, the form shall be sent by
10
certified mail, return receipt requested. If the form is
11
provided in person, the chief county assessment officer shall
12
provide a date stamped copy of the notice. Failure to provide
13
timely notice pursuant to this subsection (d-1) shall result
14
in the exemption being treated as an erroneous exemption. Upon
15
timely receipt of the notice for the current tax year, no
16
exemption shall be applied to the property for the current tax
17
year. If the exemption is not removed upon timely receipt of
18
the notice by the chief assessment officer, then the error is
19
considered granted as a result of a clerical error or omission
20
on the part of the chief county assessment officer as
21
described in subsection (h) of Section 9-275, and the property
22
owner shall not be liable for the payment of interest and
23
penalties due to the erroneous exemption for the current tax
24
year for which the notice was filed after the date that notice
25
was timely received pursuant to this subsection. Notice
26
provided under this subsection shall not constitute a defense

HB4626
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LRB104 16202 HLH 31185 b
1
or amnesty for prior year erroneous exemptions.
2

For the purposes of this subsection (d-1):
3

"Base year" means the taxable year in which the property
4
was last sold, transferred, or conveyed prior to the current
5
tax year.

6

"Collection year" means the year in which the first and
7
second installment of the current tax year is billed.
8

"Current tax year" means the year prior to the collection
9
year.
10

(e) The chief county assessment officer may, when
11
considering whether to grant a leasehold exemption under this
12
Section, require the following conditions to be met:
13

(1) that a notarized application for the exemption,
14

signed by both the owner and the lessee of the property,
15

must be submitted each year during the application period
16

in effect for the county in which the property is located;
17

(2) that a copy of the lease must be filed with the
18

chief county assessment officer by the owner of the
19

property at the time the notarized application is
20

submitted;
21

(3) that the lease must expressly state that the
22

lessee is liable for the payment of property taxes; and
23

(4) that the lease must include the following language
24

in substantially the following form:
25

"Lessee shall be liable for the payment of real
26

estate taxes with respect to the residence in

HB4626
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LRB104 16202 HLH 31185 b
1

accordance with the terms and conditions of Section
2

15-175 of the Property Tax Code (35 ILCS 200/15-175).
3

The permanent real estate index number for the
4

premises is (insert number), and, according to the
5

most recent property tax bill, the current amount of
6

real estate taxes associated with the premises is
7

(insert amount) per year. The parties agree that the
8

monthly rent set forth above shall be increased or
9

decreased pro rata (effective January 1 of each
10

calendar year) to reflect any increase or decrease in
11

real estate taxes. Lessee shall be deemed to be
12

satisfying Lessee's liability for the above mentioned
13

real estate taxes with the monthly rent payments as
14

set forth above (or increased or decreased as set
15

forth herein).".
16

In addition, if there is a change in lessee, or if the
17
lessee vacates the property, then the chief county assessment
18
officer may require the owner of the property to notify the
19
chief county assessment officer of that change.
20

This subsection (e) does not apply to leasehold interests
21
in property owned by a municipality.
22

(f) "Homestead property" under this Section includes
23
residential property that is occupied by its owner or owners
24
as his or their principal dwelling place, or that is a
25
leasehold interest on which a single family residence is
26
situated, which is occupied as a residence by a person who has

HB4626
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LRB104 16202 HLH 31185 b
1
an ownership interest therein, legal or equitable or as a
2
lessee, and on which the person is liable for the payment of
3
property taxes. For land improved with an apartment building
4
owned and operated as a cooperative, the maximum reduction
5
from the equalized assessed value shall be limited to the
6
increase in the value above the equalized assessed value of
7
the property for 1977, up to the maximum reduction set forth
8
above, multiplied by the number of apartments or units
9
occupied by a person or persons who is liable, by contract with
10
the owner or owners of record, for paying property taxes on the
11
property and is an owner of record of a legal or equitable
12
interest in the cooperative apartment building, other than a
13
leasehold interest. For land improved with a life care
14
facility, the maximum reduction from the value of the
15
property, as equalized by the Department, shall be multiplied
16
by the number of apartments or units occupied by a person or
17
persons, irrespective of any legal, equitable, or leasehold
18
interest in the facility, who are liable, under a life care
19
contract with the owner or owners of record of the facility,
20
for paying property taxes on the property. For purposes of
21
this Section, the term "life care facility" has the meaning
22
stated in Section 15-170.
23

"Household", as used in this Section, means the owner, the
24
spouse of the owner, and all persons using the residence of the
25
owner as their principal place of residence.
26

"Household income", as used in this Section, means the

HB4626
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LRB104 16202 HLH 31185 b
1
combined income of the members of a household for the calendar
2
year preceding the taxable year.
3

"Income", as used in this Section, has the same meaning as
4
provided in Section 3.07 of the Senior Citizens and Persons
5
with Disabilities Property Tax Relief Act, except that
6
"income" does not include veteran's benefits.
7

(g) In a cooperative or life care facility where a
8
homestead exemption has been granted, the cooperative
9
association or the management of the cooperative or life care
10
facility shall credit the savings resulting from that
11
exemption only to the apportioned tax liability of the owner
12
or resident who qualified for the exemption. Any person who
13
willfully refuses to so credit the savings shall be guilty of a
14
Class B misdemeanor.
15

(h) Where married persons maintain and reside in separate
16
residences qualifying as homestead property, each residence
17
shall receive 50% of the total reduction in equalized assessed
18
valuation provided by this Section.
19

(i) In all counties, the assessor or chief county
20
assessment officer may determine the eligibility of
21
residential property to receive the homestead exemption and
22
the amount of the exemption by application, visual inspection,
23
questionnaire or other reasonable methods. The determination
24
shall be made in accordance with guidelines established by the
25
Department, provided that the taxpayer applying for an
26
additional general exemption under this Section shall submit

HB4626
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LRB104 16202 HLH 31185 b
1
to the chief county assessment officer an application with an
2
affidavit of the applicant's total household income, age,
3
marital status (and, if married, the name and address of the
4
applicant's spouse, if known), and principal dwelling place of
5
members of the household on January 1 of the taxable year. The
6
Department shall issue guidelines establishing a method for
7
verifying the accuracy of the affidavits filed by applicants
8
under this paragraph. The applications shall be clearly marked
9
as applications for the Additional General Homestead
10
Exemption.
11

(i-5) This subsection (i-5) applies to counties with
12
3,000,000 or more inhabitants. In the event of a sale of
13
homestead property, the homestead exemption shall remain in
14
effect for the remainder of the assessment year of the sale.
15
Upon receipt of a transfer declaration transmitted by the
16
recorder pursuant to Section 31-30 of the Real Estate Transfer
17
Tax Law for property receiving an exemption under this
18
Section, the assessor shall mail a notice and forms to the new
19
owner of the property providing information pertaining to the
20
rules and applicable filing periods for applying or reapplying
21
for homestead exemptions under this Code for which the
22
property may be eligible. If the new owner fails to apply or
23
reapply for a homestead exemption during the applicable filing
24
period or the property no longer qualifies for an existing
25
homestead exemption, the assessor shall cancel such exemption
26
for any ensuing assessment year.

HB4626
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LRB104 16202 HLH 31185 b
1

(j) In counties with fewer than 3,000,000 inhabitants, in
2
the event of a sale of homestead property the homestead
3
exemption shall remain in effect for the remainder of the
4
assessment year of the sale. The assessor or chief county
5
assessment officer may require the new owner of the property
6
to apply for the homestead exemption for the following
7
assessment year.
8

(k) Notwithstanding Sections 6 and 8 of the State Mandates
9
Act, no reimbursement by the State is required for the
10
implementation of any mandate created by this Section.
11

(l) The changes made to this Section by this amendatory
12
Act of the 100th General Assembly are effective for the 2018
13
tax year and thereafter.
14
(Source: P.A. 102-895, eff. 5-23-22.)

15

Section 99.
Effective date.
This Act takes effect upon
16
becoming law.

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