This morning I received an email from a gentleman considering relocating to Naperville. He asked for help understanding property tax rates there since Naperville is in both DuPage and Will counties.
Tax rates in the Chicago area are usually described in terms of an amount per $100 of value by governments (e.g. $7.5 per $100 of value or 7.5% of value), so it’s important to understand what is meant by value. Value is assessed value. In all Illinois counties except Cook County, property is assessed at 1/3 of fair market value. So a home with a fair market value of $400,000 has an assessed value of $133,333.33 ($400,000 / 3). Cook County assessed values range from 16% to 38% of fair market value depending on how the property is classified.
If you stop by the sales office of a new home development (don’t forget to take your Realtor with you! 
) and ask what the estimated taxes will be for a new home, the sales staff usually puts the tax rate in terms of a rate to be multiplied against the sales price of a home. Since the sales price is often considered the fair market value, the rate will be around 1/3 of the rate stated by a government agency. So if a county website says the average tax rate for the county is $7.5 per hundred dollars of value, a builder’s sales rep will probably say that the rate is 2.5% ($2.5 per hundred dollars of sale price, 1/3 of $7.5).
According to the Office of the Will County Clerk, the 2005 average Will County property tax rate was $7.3103 per hundred dollars of value. To estimate the taxes for a $400,000 home multiply the assessed value by the tax rate (($400,000 x 1/3) x ($7.3103 / 100)) for taxes of $9,747.06. Another way to arrive at the same answer is to multiply the price of the home by 1/3 of the tax rate ($400,000 * (0.073103 /3)) = $9,747.06.
In DuPage County, property tax rates vary widely between suburbs with 2005 taxes rates ranging from $8.2058 for Glendale Heights down to $2.7896 for Oak Brook. The part of Naperville in DuPage County had a 2005 tax rate of $5.7984. The DuPage County Clerk has a list of 2005 taxes rates by community. To estimate the taxes for a suburb in DuPage County, use the same formulas as above with the tax rate for that suburb.
Similar Posts:
- Cook County 2008 property tax rates released
- Higher Property Taxes Mean Lower Offers!
- Governor’s Property Tax Assessment Controversy Shines a Light on Assessment Confusion Part 1
- Governor’s Property Tax Assessment Shines a Light on Assessment Confusion Part 2
- North & West Suburbs Buyer Transfer Tax Update
{ 2 comments… read them below or add one }
Fran,
Great post, taxes can be confusing… especially in the city when it comes to tax stamps and purchases.
John
I’ve been active in taxations for longer then I care to acknowledge, both on the individualized side (all my working life story!!) and from a legal viewpoint since passing the bar and following up on tax law. I’ve put up a lot of advice and righted a lot of wrongs, and I must say that what you’ve put up makes utter sense. Please carry on the good work – the more individuals know the better they’ll be outfitted to deal with the tax man, and that’s what it’s all about.