You must own and occupy the property on January 1st of the assessment year to qualify for any of these homestead exemptions. You may receive homestead exemptions on only one property. You cannot receive homestead exemptions in Edgar County if you are receiving homestead exemptions in another county or another state.
General Homestead Exemption i.e. Owner Occupied Exemption (35 ILCS 200/15-175)
This annual exemption is granted for residential property that is occupied as the principal dwelling place by the owner or a lessee on which the person is liable for the payment of property taxes. The exemption is the increase in the current year’s equalized assessed value (EAV), above the 1977 EAV, up to a maximum of $6,000.
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Homestead Improvement Exemption (35 ILCS 200/15-180)
This exemption is limited to the fair cash value that was added to the homestead property by any new improvement, up to an annual maximum of $75,000. The exemption continues for four years from the date the improvement is completed. Routine maintenance, such as siding, replacement windows, or a new roof does not qualify. Home must be owner occupied.
Senior Citizens Homestead Exemption (35 ILCS 200/15-170)
Persons 65 years of age or older who live in a home they own, or have a legal or equitable interest in by a written instrument, are eligible to apply for the homestead exemption. This exemption reduces the equalized assessed value (EAV) of their home by $5,000.
Senior Citizens Assessment Freeze Homestead Exemption (35 ILCS 200/15-172)
This exemption allows qualified senior citizens to maintain the equalized assessed value (EAV) of their home at the base year value and prevent increases due to inflation. The base year generally is the year prior to the year the senior citizen first qualifies and applies for the exemption.
This exemption does not freeze the amount of your property taxes. Property taxes could increase if the tax rate increases. The assessment and tax bill may also increase if improvements are added. If the equalized assessed value of the home decreases, the senior citizen would benefit from the reduction.
To qualify for this exemption, you must be 65 years of age or older during the taxable year, and have a total household income of $65,000 or less. You must have used the property as your principal place of residence for the previous year and the current year. You must have owned the property, or had a legal or equitable interest in the property by a written instrument, as of January 1 of the previous year and the current year. You must be liable for the payment of property taxes on the property. This exemption must be renewed yearly by July 1.
Disabled Veterans’ Exemption (35 ILCS 200/15-165)
This exemption is determined by the Illinois Department of Veterans’ Affairs. It may be up to $70,000 of the equalized assessed value (EAV) for housing owned and used by a disabled veteran or his or her unmarried surviving spouse. This exemption is renewed yearly.
Returning Veterans’ Homestead Exemption (35 ILCS 200/15-167)
This exemption grants a $5,000 reduction for two consecutive years in a property’s equalized assessed value (EAV) to qualifying veterans who return from active duty in an armed conflict involving the armed forces of the United States. Veteran must own and occupy the property as their principal residence on January 1 of each assessment year. To receive this exemption, the veteran must file an application upon their return home.
Disabled Persons’ Homestead Exemption (35 ILCS 200/15-168)
This exemption grants a $2,000 reduction in equalized assessed value (EAV) to a property owned by a qualifying disabled person. A disabled person must file an annual renewal by the July 1 to continue to receive this exemption.
Disabled Veterans’ Standard Homestead Exemption (35 ILCS 200/15-169)
This exemption grants a reduction in equalized assessed value (EAV) to a property owned by a qualifying veteran with a service-connected disability certified by the U. S. Department of Veterans’ Affairs.
The benefits for this exemption have changed as follows:
- Veterans or surviving spouses of veterans with at least 30% service-connected disability, but less than 50%, will receive a $2,500 annual exemption.
- Veterans or surviving spouses of veterans with a service-connected disability of 50%, but less than 70%, will receive a $5,000 annual exemption.
- Veterans or surviving spouses of veterans with a service-connected disability of 70% or more will be exempt from paying property taxes on their primary residences.
Non-homestead Exemptions (35 ILCS 200/15-5 through 35 ILCS 200/15-160)
Properties of federal, state and local governments as well as religious, charitable, and educational organizations are eligible for exemption from property taxes. The organization must apply for exemption to the Board of Review which makes a recommendation and forwards the application to the Department of Revenue for a final decision. Applications are available at the Supervisor of Assessments office.
More Information: Illinois Dept of Veteran Affairs