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Chicago's Historical Effective Property Tax Rates

Article:
(This archived article was published in 2013.  More recent data is found in the articles section of our web site). Between changing assessment levels, tax rates and varying state multipliers it can sometimes be difficult for a property owner to understand exactly what is going on with their taxes. The nice thing about an effective tax rate is that one can tell at a glance what kind of bite taxes are taking out of property values. A $100,000 property with a 2% effective tax rate would pay $2,000 per year in property taxes. The Civic Federation recently published the effective tax rates for the City of Chicago from 2003 to 2012 for residential and commercial properties. To no one's surprise, I'm sure, the taxes are much higher now! It is also interesting to note how the relationship between residential and commercial rates has varied over time.

City of Chicago Effective Tax Rates


Year                Commercial               Residential                 Differential

 

2003                3.0%                            1.4%                            2.14x

2004                2.3%                            1.3%                            1.77x

2005                2.4%                            1.2%                            2.00x

2006                1.9%                            1.3%                            1.46x

2007                2.2%                            1.3%                            1.69x

2008                2.4%                            1.3%                            1.85x

2009                2.4%                            1.5%                            1.60x

2010                4.2%                            1.7%                            2.47x

2011                3.8%                            1.8%                            2.11x

                       2012                4.9%                             1.8%                            2.72x


It is important to note that these statistics reflect averages and cannot be applied to any specific property. Property owners need to really consider the long term impact increasing tax rates can have on their cash flow projections and property values.

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