You’ve probably heard the news—or maybe you felt it in your bank account first. Chicago real estate taxes are doing something weird, and frankly, it’s a mess.
If you live in West Garfield Park or Englewood, you’re not just seeing a "hike." You’re seeing a total transformation of your financial reality. Some homeowners in these spots just got hit with bills that are 100% higher than last year. Basically, the bill doubled overnight. Meanwhile, if you’re looking at a massive office tower in the Loop, their taxes might actually be dropping.
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It feels backwards. It feels wrong. But there’s a very specific, almost mathematical reason why this is happening right now, and it has everything to do with how the city is trying to balance its books in 2026.
The 2026 Budget Drama: Why Your Bill Is Changing
Let's talk about Mayor Brandon Johnson’s latest move. For months, the city was bracing for a massive $300 million property tax hike. People were panicked. Then, in a bit of political gymnastics, that number was whittled down, and eventually, the 2026 budget passed in late December 2025 without a broad, city-wide property tax increase from the Mayor’s office.
But—and this is a big "but"—that doesn’t mean your bill stayed flat.
While the Mayor’s office skipped the broad increase, the Chicago Board of Education stepped in. Just a couple of weeks ago, they approved a tax hike of their own. They’re looking to pull in at least $25 million for the 2026 fiscal year to help cover a massive $734 million deficit. Because the school district makes up roughly half of your total property tax bill, their "small" increases still hit like a sledgehammer.
The Loop is Leaking Value
The real culprit here isn't just government spending. It’s the skyscrapers.
Think about the Loop. Ten years ago, those buildings were gold mines. Today? Remote work has gutted occupancy. When the Cook County Assessor, Fritz Kaegi, looks at those buildings, he has to acknowledge they aren't worth what they used to be.
When the value of commercial real estate drops, the tax burden doesn’t just disappear. The city still needs the same amount of money to pay for pensions and police. So, the "weight" of the tax shifts. It moves off the shoulders of the downtown landlords and onto the roofs of residential homes.
According to a study from Cook County Treasurer Maria Pappas’ office, the median residential tax bill in Chicago jumped 16.7% recently. That is the biggest spike in thirty years.
Neighborhoods Under Fire: The Reality of 133% Jumps
Percentages are one thing, but the dollar amounts in specific neighborhoods are wild. Honestly, it’s heartbreaking to see where the biggest hits are landing.
- West Garfield Park: The median bill didn't just go up; it skyrocketed by 133%.
- North Lawndale: Homeowners there saw a median jump of about 99%.
- Englewood: Bills rose by roughly 82.5%.
The irony here is almost cruel. These neighborhoods are seeing higher assessments because home values are actually rising there—which is normally a good thing for a homeowner’s net worth. But when that value rise meets a tax system that is shifting away from commercial buildings, the result is a bill that many long-time residents simply can’t pay.
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In contrast, wealthier areas like Lincoln Park saw much smaller upticks, around 6%. It’s a lopsided reality that has Assessor Kaegi calling for "circuit breaker" legislation at the state level to stop these spikes from pricing people out of their own homes.
Where Else Is the Money Coming From?
Since the City Council blocked the massive property tax hike the Mayor originally wanted, they had to get "creative." If you aren't paying more in property taxes, you’re definitely paying more elsewhere.
Starting January 2026, Chicago has rolled out a suite of new or increased fees:
- Cloud Computing Tax: This jumped to 15%. If your business uses AWS, Azure, or even basic streaming software, your costs just went up.
- Streaming Tax: That 10.25% "Netflix tax" is still very much a thing, and it’s a huge revenue generator.
- Checkout Bags: Those plastic bags at the grocery store? Now $0.15 instead of $0.07.
- Social Media Tax: A new 50-cent-per-user fee on big tech companies that scrape data from over 100,000 Chicagoans.
Actionable Steps: How to Fight Back
You don't just have to sit there and take the bill. There are actual levers you can pull, though they require some paperwork.
1. File an Appeal (Immediately)
The Cook County Board of Review recently did something rare—they reopened the 2025 appeal window for certain townships because the 2024 bills were so delayed. Check the Cook County Board of Review website to see if your township is open. If you can prove your home is assessed higher than similar homes on your block, you can get that number brought down.
2. Check Your Exemptions
Many people are paying "full price" when they don't have to. Are you over 65? There’s a Senior Citizen Exemption. Is this your primary residence? You need the Homeowner Exemption. There’s also the Long-term Homeowner Exemption for people who have stayed in gentrifying areas for 10+ years. These can shave hundreds, sometimes thousands, off the final bill.
3. Track the "Multiplier"
The State of Illinois applies an "Equalization Factor" (the multiplier) to every bill in Cook County to make sure assessments are uniform across the state. In recent years, this multiplier has been high. You can’t change the multiplier yourself, but knowing it exists helps you understand why your bill went up even if your local tax rate stayed the same.
4. Support "Circuit Breaker" Reform
Keep an eye on Springfield. There is a growing push for state laws that would cap how much a property tax bill can increase in a single year for low-income residents. If you're feeling the squeeze, reaching out to your state representative about property tax "circuit breakers" is one of the few long-term ways to change the system.
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The Chicago real estate tax increase isn't just one single event; it's a slow-motion collision between falling office values and rising city costs. Whether you're a first-time buyer or a long-time resident, the 2026 tax landscape requires a much more aggressive approach to managing your property than it did five years ago.
Don't wait for the second installment bill to arrive in your mailbox before you start looking at your assessment. By then, the window to fight it has usually already closed.