Chicago Property Taxes in 2025: The Reality Behind the Numbers

A clear breakdown of why Chicago property taxes surged in 2025, how CPS drives costs, and what buyers and sellers need to know.

Word count: ~820 words. Estimated read time: 4 minutes

Editor’s Note (Fall 2026): While the fundamentals of Cook County's tax system remain unchanged, the newest data from the Treasurer’s Office confirms a 32nd straight year of rising tax bills—with residential homeowners absorbing roughly 80% of the new $743M levy increase. We’ve kept this guide updated so you can navigate these rising carrying costs, check your exemptions, and evaluate whether an assessment appeal makes sense for your property.

As Realtors in Chicago, we hear about property taxes everywhere — dinners, parties, and casual conversations that turn serious the moment the word “taxes” comes up. What’s always clear is this: almost no one actually understands how property taxes are calculated, what they truly pay for, or why city and suburban tax conversations aren’t even talking about the same thing. Chicago’s 2025 tax landscape has been defined by unprecedented volatility in property taxes, with homeowners experiencing the largest median increase in at least 30 years, alongside targeted city-level tax increases and ongoing debate around future tax policy. 

While the City avoided a direct property tax levy increase in its 2025 budget, residential property owners still absorbed significant increases, driven by how property taxes are assessed, appealed, and redistributed across property classes.

The Central Issue: A Shift From Commercial to Residential

The most consequential tax story this year is the redistribution of the property tax burden.

Following the 2024 reassessment (tax bills payable in 2025), commercial property values—particularly in the Loop—declined sharply due to persistent vacancy and reduced demand. Median commercial tax bills downtown fell materially, while approximately $500 million in tax burden shifted to homeowners across the city.

As a result, the median Chicago homeowner’s property tax bill increased by 16.7%, rising by more than $600 year over year — the largest jump in decades.

The Largest Line Item: Public Schools

Yes, you read that correctly. It’s essential to be precise about where property tax dollars are allocated.

Chicago Public Schools represent the single largest portion of the residential property tax bill, often accounting for roughly half or more of the total obligation. In 2025, CPS again maximized its allowable levy increase under state law, making school funding the most influential driver behind higher bills — even without a citywide property tax hike.

When commercial properties contribute less, large fixed levies like CPS do not shrink. The difference is made up elsewhere — primarily by homeowners.

A Zero-Sum System With Uneven Results

Property taxes in Cook County operate as a zero-sum system. When one segment pays less, another pays more.

• Neighborhood Disparities: Median bills in some South and West Side neighborhoods increased by an average of 30%, with some specific areas seeing increases of over 50%, reaching as high as double the previous year's bill.
• Total Tax Levy Growth: Overall property taxes in the city grew by $528.6 million, a 6.3% increase for the tax year. 

That shift was not evenly distributed. By contrast, many North Side neighborhoods in which we focus experienced far smaller percentage increases.

Our role is to help clients navigate Chicago’s complexity with clarity and foresight — before the tax bill arrives, not after.

Appeals and Assessment Timing Matter

Another critical contributor was the appeals process.

Commercial property owners secured assessment reductions of roughly 17%, compared to about 1% for residential owners. According to the Cook County Assessor, this discrepancy shifted an estimated $700 per homeowner in tax burden across the city.

Compounding this impact is Cook County’s triennial assessment cycle, in which each township is reassessed once every three years. Reassessment years are when the largest valuation changes — and the greatest tax volatility — tend to occur, particularly in neighborhoods undergoing reinvestment or transition.

What This Means for Buyers, Sellers, and Long-Term Owners

For our clients, the takeaway is not alarm — it’s fluency.

• Buyers should evaluate tax exposure as carefully as the purchase price
• Sellers benefit from understanding how reassessments affect buyer perception and marketability
• Long-term owners should proactively review assessments, exemptions, and appeal opportunities

In today’s Chicago market, tax literacy is part of responsible ownership — and experienced representation means understanding not just value, but long-term cost.

Our Perspective

Chicago remains a resilient and globally significant city. But its property tax system is complex, political, and highly sensitive to market shifts — particularly during periods of commercial real estate disruption. One thing is certain: the ticket for this ride is a bit higher than elsewhere in the country. But elsewhere in the country is not Chicago.

Our role is to help clients navigate that complexity with clarity and foresight — so decisions are informed before the tax bill arrives, not after.

— Craig Hogan & Rudy Zavala

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This story is for information purposes.

Data provided in part from CityWide Title

Cook County Treasurer's Office