PROP TX-VETERANS W/DISABILITY

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5378

Introduced 2/10/2026, by Rep. Wayne A. Rosenthal

SYNOPSIS AS INTRODUCED:

35 ILCS 200/15-169

Amends the Property Tax Code. In provisions concerning the homestead
exemption for veterans with disabilities and veterans of World War II,
provides that, if the veteran has a service-connected disability of 50% or
more, then the first $250,000 in equalized assessed value of the property
is exempt from taxation under the Code (currently, if the veteran has a
service-connected disability of 50% or more but less than 70%, the annual
exemption is $5,000, and, if the veteran has a service-connected
disability of 70% or more, then the first $250,000 in equalized assessed
value of the property is exempt). Effective immediately.
LRB104 17885 HLH 31321 b

A BILL FOR

HB5378
LRB104 17885 HLH 31321 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 15-169 as follows:

6

(35 ILCS 200/15-169)
7

Sec. 15-169.
Homestead exemption for veterans with
8
disabilities and veterans of World War II.
9

(a) Beginning with taxable year 2007, an annual homestead
10
exemption, limited as provided in this Section, is granted for
11
property that is used as a qualified residence by a veteran
12
with a disability, and beginning with taxable year 2024, an
13
annual homestead exemption, limited to the amounts set forth
14
in subsection (b-4), is granted for property that is used as a
15
qualified residence by a veteran who was a member of the United
16
States Armed Forces during World War II.
17

(b) For taxable years prior to 2015, the amount of the
18
exemption under this Section is as follows:
19

(1) for veterans with a service-connected disability
20

of at least (i) 75% for exemptions granted in taxable
21

years 2007 through 2009 and (ii) 70% for exemptions
22

granted in taxable year 2010 and each taxable year
23

thereafter, as certified by the United States Department

HB5378
- 2 -
LRB104 17885 HLH 31321 b
1

of Veterans Affairs, the annual exemption is $5,000; and
2

(2) for veterans with a service-connected disability
3

of at least 50%, but less than (i) 75% for exemptions
4

granted in taxable years 2007 through 2009 and (ii) 70%
5

for exemptions granted in taxable year 2010 and each
6

taxable year thereafter, as certified by the United States
7

Department of Veterans Affairs, the annual exemption is
8

$2,500.
9

(b-3) For taxable years 2015 through 2022:
10

(1) if the veteran has a service connected disability
11

of 30% or more but less than 50%, as certified by the
12

United States Department of Veterans Affairs, then the
13

annual exemption is $2,500;
14

(2) if the veteran has a service connected disability
15

of 50% or more but less than 70%, as certified by the
16

United States Department of Veterans Affairs, then the
17

annual exemption is $5,000;
18

(3) if the veteran has a service connected disability
19

of 70% or more, as certified by the United States
20

Department of Veterans Affairs, then the property is
21

exempt from taxation under this Code; and
22

(4) (Blank).
23

(b-3.1) For taxable
years

year
2023
through 2025

and
24
thereafter
:
25

(1) if the veteran has a
service-connected

service
26

connected
disability of 30% or more but less than 50%, as

HB5378
- 3 -
LRB104 17885 HLH 31321 b
1

certified by the United States Department of Veterans
2

Affairs as of the date the application is submitted for
3

the exemption under this Section for the applicable
4

taxable year, then the annual exemption is $2,500;
5

(2) if the veteran has a
service-connected

service
6

connected
disability of 50% or more but less than 70%, as
7

certified by the United States Department of Veterans
8

Affairs as of the date the application is submitted for
9

the exemption under this Section for the applicable
10

taxable year, then the annual exemption is $5,000;
11

(3) if the veteran has a
service-connected

service
12

connected
disability of 70% or more, as certified by the
13

United States Department of Veterans Affairs as of the
14

date the application is submitted for the exemption under
15

this Section for the applicable taxable year, then the
16

first $250,000 in equalized assessed value of the property
17

is exempt from taxation under this Code; and
18

(4) if the taxpayer is the surviving spouse of a
19

veteran whose death was determined to be
service connected

20

service-connected
and who is certified by the United
21

States Department of Veterans Affairs as a recipient of
22

dependency and indemnity compensation under federal law as
23

of the date the application is submitted for the exemption
24

under this Section for the applicable taxable year, then
25

the first $250,000 in equalized assessed value of the
26

property is also exempt from taxation under this Code.

HB5378
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LRB104 17885 HLH 31321 b
1

(b-3.2) For taxable years 2026 and thereafter:

2

(1) if the veteran has a service-connected disability
3

of 30% or more but less than 50%, as certified by the
4

United States Department of Veterans Affairs as of the
5

date the application is submitted for the exemption under
6

this Section for the applicable taxable year, then the
7

annual exemption is $2,500;

8

(2) if the veteran has a service-connected disability
9

of 50% or more, as certified by the United States
10

Department of Veterans Affairs as of the date the
11

application is submitted for the exemption under this
12

Section for the applicable taxable year, then the first
13

$250,000 in equalized assessed value of the property is
14

exempt from taxation under this Code; and

15

(3) if the taxpayer is the surviving spouse of a
16

veteran whose death was determined to be service connected
17

and who is certified by the United States Department of
18

Veterans Affairs as a recipient of dependency and
19

indemnity compensation under federal law as of the date
20

the application is submitted for the exemption under this
21

Section for the applicable taxable year, then the first
22

$250,000 in equalized assessed value of the property is
23

also exempt from taxation under this Code.

24

This amendatory Act of the 103rd General Assembly shall
25
not be used as the basis for any appeal filed with the chief
26
county assessment officer, the board of review, the Property

HB5378
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LRB104 17885 HLH 31321 b
1
Tax Appeal Board, or the circuit court with respect to the
2
scope or meaning of the exemption under this Section for a tax
3
year prior to tax year 2023.
4

(b-4) For taxable years on or after 2024, if the veteran
5
was a member of the United States Armed Forces during World War
6
II, then the property is exempt from taxation under this Code
7
regardless of the veteran's level of disability.
8

(b-5) If a homestead exemption is granted under this
9
Section and the person awarded the exemption subsequently
10
becomes a resident of a facility licensed under the Nursing
11
Home Care Act or a facility operated by the United States
12
Department of Veterans Affairs, then the exemption shall
13
continue (i) so long as the residence continues to be occupied
14
by the qualifying person's spouse or (ii) if the residence
15
remains unoccupied but is still owned by the person who
16
qualified for the homestead exemption.
17

(c) The tax exemption under this Section carries over to
18
the benefit of the veteran's surviving spouse as long as the
19
spouse holds the legal or beneficial title to the homestead,
20
permanently resides thereon, and does not remarry. If the
21
surviving spouse sells the property, an exemption not to
22
exceed the amount granted from the most recent ad valorem tax
23
roll may be transferred to his or her new residence as long as
24
it is used as his or her primary residence and he or she does
25
not remarry.
26

As used in this subsection (c):

HB5378
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LRB104 17885 HLH 31321 b
1

(1) for taxable years prior to 2015, "surviving
2

spouse" means the surviving spouse of a veteran who
3

obtained an exemption under this Section prior to his or
4

her death;
5

(2) for taxable years 2015 through 2022, "surviving
6

spouse" means (i) the surviving spouse of a veteran who
7

obtained an exemption under this Section prior to his or
8

her death and (ii) the surviving spouse of a veteran who
9

was killed in the line of duty at any time prior to the
10

expiration of the application period in effect for the
11

exemption for the taxable year for which the exemption is
12

sought; and
13

(3) for taxable year 2023 and thereafter, "surviving
14

spouse" means: (i) the surviving spouse of a veteran who
15

obtained the exemption under this Section prior to his or
16

her death; (ii) the surviving spouse of a veteran who was
17

killed in the line of duty at any time prior to the
18

expiration of the application period in effect for the
19

exemption for the taxable year for which the exemption is
20

sought; (iii) the surviving spouse of a veteran who did
21

not obtain an exemption under this Section before death,
22

but who would have qualified for the exemption under this
23

Section in the taxable year for which the exemption is
24

sought if he or she had survived, and whose surviving
25

spouse has been a resident of Illinois from the time of the
26

veteran's death through the taxable year for which the

HB5378
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LRB104 17885 HLH 31321 b
1

exemption is sought; and (iv) the surviving spouse of a
2

veteran whose death was determined to be
3

service-connected, but who would not otherwise qualify
4

under item (i), (ii), or (iii), if the spouse (A) is
5

certified by the United States Department of Veterans
6

Affairs as a recipient of dependency and indemnity
7

compensation under federal law at any time prior to the
8

expiration of the application period in effect for the
9

exemption for the taxable year for which the exemption is
10

sought and (B) remains eligible for that dependency and
11

indemnity compensation as of January 1 of the taxable year
12

for which the exemption is sought.
13

(c-1) Beginning with taxable year 2015, nothing in this
14
Section shall require the veteran to have qualified for or
15
obtained the exemption before death if the veteran was killed
16
in the line of duty.
17

(d) The exemption under this Section applies for taxable
18
year 2007 and thereafter. A taxpayer who claims an exemption
19
under Section 15-165 or 15-168 may not claim an exemption
20
under this Section.
21

(e) Except as otherwise provided in this subsection (e),
22
each taxpayer who has been granted an exemption under this
23
Section must reapply on an annual basis, except that a veteran
24
who qualifies as a result of his or her service in World War II
25
need not reapply. Application must be made during the
26
application period in effect for the county of his or her

HB5378
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LRB104 17885 HLH 31321 b
1
residence. The assessor or chief county assessment officer may
2
determine the eligibility of residential property to receive
3
the homestead exemption provided by this Section by
4
application, visual inspection, questionnaire, or other
5
reasonable methods. The determination must be made in
6
accordance with guidelines established by the Department.
7

On and after May 23, 2022 (the effective date of Public Act
8
102-895), if a veteran has a combined service connected
9
disability rating of 100% and is deemed to be permanently and
10
totally disabled, as certified by the United States Department
11
of Veterans Affairs, the taxpayer who has been granted an
12
exemption under this Section shall no longer be required to
13
reapply for the exemption on an annual basis, and the
14
exemption shall be in effect for as long as the exemption would
15
otherwise be permitted under this Section.
16

(e-1) If the person qualifying for the exemption does not
17
occupy the qualified residence as of January 1 of the taxable
18
year, the exemption granted under this Section shall be
19
prorated on a monthly basis. The prorated exemption shall
20
apply beginning with the first complete month in which the
21
person occupies the qualified residence.
22

(e-5) Notwithstanding any other provision of law, each
23
chief county assessment officer may approve this exemption for
24
the 2020 taxable year, without application, for any property
25
that was approved for this exemption for the 2019 taxable
26
year, provided that:

HB5378
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LRB104 17885 HLH 31321 b
1

(1) the county board has declared a local disaster as
2

provided in the Illinois Emergency Management Agency Act
3

related to the COVID-19 public health emergency;
4

(2) the owner of record of the property as of January
5

1, 2020 is the same as the owner of record of the property
6

as of January 1, 2019;
7

(3) the exemption for the 2019 taxable year has not
8

been determined to be an erroneous exemption as defined by
9

this Code; and
10

(4) the applicant for the 2019 taxable year has not
11

asked for the exemption to be removed for the 2019 or 2020
12

taxable years.
13

Nothing in this subsection shall preclude a veteran whose
14
service connected disability rating has changed since the 2019
15
exemption was granted from applying for the exemption based on
16
the subsequent service connected disability rating.
17

(e-10) Notwithstanding any other provision of law, each
18
chief county assessment officer may approve this exemption for
19
the 2021 taxable year, without application, for any property
20
that was approved for this exemption for the 2020 taxable
21
year, if:
22

(1) the county board has declared a local disaster as
23

provided in the Illinois Emergency Management Agency Act
24

related to the COVID-19 public health emergency;
25

(2) the owner of record of the property as of January
26

1, 2021 is the same as the owner of record of the property

HB5378
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LRB104 17885 HLH 31321 b
1

as of January 1, 2020;
2

(3) the exemption for the 2020 taxable year has not
3

been determined to be an erroneous exemption as defined by
4

this Code; and
5

(4) the taxpayer for the 2020 taxable year has not
6

asked for the exemption to be removed for the 2020 or 2021
7

taxable years.
8

Nothing in this subsection shall preclude a veteran whose
9
service connected disability rating has changed since the 2020
10
exemption was granted from applying for the exemption based on
11
the subsequent service connected disability rating.
12

(f) For the purposes of this Section:
13

"Qualified residence" means, before tax year 2023, real
14
property, but less any portion of that property that is used
15
for commercial purposes, with an equalized assessed value of
16
less than $250,000 that is the primary residence of a veteran
17
with a disability. "Qualified residence" means, for tax year
18
2023 and thereafter, real property, but less any portion of
19
that property that is used for commercial purposes, that is
20
the primary residence of a veteran with a disability. Property
21
rented for more than 6 months is presumed to be used for
22
commercial purposes.
23

"Service-connected disability" means an illness or injury
24
(i) that was caused by or worsened by active military service,
25
(ii) that is a current disability as of the date of the
26
application for the exemption under this Section for the

HB5378
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LRB104 17885 HLH 31321 b
1
applicable tax year, as demonstrated by the veteran's United
2
States Department of Veterans Affairs certification, and (iii)
3
for which the veteran receives disability compensation.
4

For tax years 2022 and prior, "veteran" means an Illinois
5
resident who has served as a member of the United States Armed
6
Forces on active duty or State active duty, a member of the
7
Illinois National Guard, or a member of the United States
8
Reserve Forces and who has received an honorable discharge.
9
For taxable years 2023 and thereafter, "veteran" means an
10
Illinois resident who has served as a member of the United
11
States Armed Forces on active duty or State active duty, a
12
member of the Illinois National Guard, or a member of the
13
United States Reserve Forces and who has a service-connected
14
disability, as certified by the United States Department of
15
Veterans Affairs, and receives disability compensation.
16
(Source: P.A. 102-136, eff. 7-23-21; 102-895, eff. 5-23-22;
17
103-154, eff. 6-30-23; 103-596, eff. 7-1-24.)

18

Section 99.
Effective date.
This Act takes effect upon
19
becoming law.

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