With a 4.95% top income tax rate and 2.07% property tax, Illinois homeowners face a moderate combined tax burden. This calculator is pre-filled with Illinois numbers: $260,000 median price, 2.07% property tax, $1,650/year insurance.
Last updated: March 13, 2026
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Monthly Payment (Illinois)$0
Loan Details — Illinois
Illinois median: $260,000
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Below 20% triggers PMI on conventional loans
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Average 30-year fixed ~6.75% (March 2026)
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Illinois average: 2.07%
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Illinois average: $1,650/yr
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Property Tax
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Illinois Metro Area Home Prices
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Illinois's Tax Landscape and Your Mortgage
Illinois levies a flat 4.95% income tax on all taxable income. A household earning $150,000 pays approximately $5,569 in state income tax, which reduces the amount available for monthly mortgage payments by roughly $464/month.
At the state's median home price of $260,000, the $2.07% property tax rate adds $449/month to your mortgage payment. That's $5,382/year — well above the national median of ~1.1%.
Property Taxes Across Illinois
The 2.07% statewide average masks significant variation. Second-highest property taxes in the nation — suburban Chicago rates often exceed 2.5%
Price ranges across the state: Chicago suburbs has a median of $340,000, while Springfield sits at $165,000 — a $175,000 gap that dramatically changes your monthly payment. At $2.07% property tax, that price difference alone means $302/month more in property tax in Chicago suburbs.
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Homebuyer Programs and Exemptions
Illinois offers several programs for homebuyers:
IHDA 1stHomeIllinois with $7,500 forgivable down payment assistance
SmartBuy program with student loan payoff assistance
Homestead exemption: General homestead: $10,000 reduction in EAV ($8,000 in Cook County); Senior homestead: additional $8,000; Senior freeze for qualifying low-income seniors
Illinois-Specific Considerations
Second-highest property taxes in the nation — suburban Chicago rates often exceed 2.5%
Property tax rates vary enormously by school district and taxing jurisdiction
Flat 4.95% income tax — attempted graduated tax amendment failed in 2020
Chicago has additional transfer taxes (city + county) totaling ~$7.50 per $500
Property tax bills in Cook County suburbs can exceed $10,000/year on a $300,000 home
Compare Illinois Mortgage Rates
See personalized rates from Illinois lenders. LendingTree matches you with up to 5 offers so you can compare and save.
0.39% property tax, 5% top rate. Median home: $232,500.
Alaska Mortgage Calculator
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1.04% property tax, no income tax. Median home: $340,000.
Arizona Mortgage Calculator
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0.62% property tax, 2.5% top rate. Median home: $395,000.
Frequently Asked Questions
What is the average property tax rate in Illinois?
The average effective property tax rate in Illinois is 2.07%. On a $260,000 home (the state median), that works out to approximately $5,382/year or $449/month added to your mortgage payment. Property tax rates vary by county and school district within Illinois — always check your specific jurisdiction's rate. Homestead exemption: General homestead: $10,000 reduction in EAV ($8,000 in Cook County); Senior homestead: additional $8,000; Senior freeze for qualifying low-income seniors
How much does homeowners insurance cost in Illinois?
The average annual homeowners insurance premium in Illinois is approximately $1,650 ($138/month). This is near the national average of approximately $1,500/year. Actual premiums depend on your home's location, age, construction type, and coverage limits.
What first-time homebuyer programs are available in Illinois?
IHDA 1stHomeIllinois with $7,500 forgivable down payment assistance. SmartBuy program with student loan payoff assistance. These programs typically have income limits, purchase price caps, and may require homebuyer education courses. Check the Illinois housing finance agency website for current eligibility requirements and application deadlines.
How does Illinois's 4.95% income tax affect home affordability?
Illinois's top income tax rate of 4.95% reduces your take-home pay, which affects how much mortgage you can comfortably carry. On a $150,000 salary, state income tax takes roughly $4,826-$6,311/year (effective rate is lower than the top marginal rate). Combined with 2.07% property tax, the total tax burden in Illinois is above average. Use our paycheck calculator to see your exact take-home pay.
What is the conforming loan limit in Illinois?
The 2026 conforming loan limit in Illinois is $806,500. Loans above this amount are considered jumbo loans and typically carry higher interest rates (0.25-0.5% premium), require larger down payments (10-20%), and have stricter qualification requirements including higher credit scores (700+) and lower debt-to-income ratios.
This calculator is for educational purposes. Tax rates and insurance costs are based on Illinois state averages and may not reflect your specific county, school district, or municipality. Consult a financial professional for advice specific to your situation.