Cook County property taxes have risen twice as fast as inflation, new study finds
Cook County property taxes increased by twice the rate of inflation, study finds
Property taxes in Cook County have risen at nearly twice the rate of inflation, according to a new study from Cook County Treasurer Maria Pappas’ office.
CHICAGO - Property taxes in Cook County have risen at nearly twice the rate of inflation, according to a new study from Cook County Treasurer Maria Pappas’ office.
Over the past three decades, property taxes imposed in the state’s largest county have grown by about 182%, while inflation rose by less than 91% and average wages grew by 161%, according to Pappas’ office.
The median property tax bill in Cook County was about $5,827 in 2024, the treasurer's office data show. But if property taxes had only gone up by the rate of inflation, the median property tax bill would only have been about $3,057 that year.
This latest study comes just two days before the next installment of Cook County property tax bills are due, and the rising costs have become a lightening rod for local elected officials and taxpayers. Pappas and other officials have called on state lawmakers to pass "significant tax reform and find ways for local taxing agencies to cut spending."
"What this is, it's a call to action," Pappas said in an interview on ChicagoLIVE. "It is a call for people to say ‘I’ve had enough and something needs to be done about it.’"
Overspending and loopholes
Why you should care:
Pappas argued that the issue stems from overspending by the hundreds local taxing bodies in Cook County, which typically only raise the amount of taxes they impose on residents. She called it a "drunken sailor’s spending problem."
These marked increases have happened despite a state law called the Property Tax Extension Limitation Law (PTELL), which limits how much each local government can increase its property tax rate each year. They can only raise their property tax rate up to the rate of inflation or 5%, whichever is less.
Cook County property taxes outpace inflation, report finds | ChicagoLIVE
A new report says tax increases have outpaced both wages and inflation for decades. Treasurer Maria Pappas calls for reforms as costs continue to climb.
But, Pappas noted, there are a number of loopholes in the system that local taxing bodies use to get around that law:
- Home rule municipalities, which are generally larger cities and villages, are granted more leeway by the state to increase taxes and are not bound by PTELL.
- Local governments can increase their taxes beyond the legal limit if voters approve higher taxes via a referendum, which agencies typically try to get on ballots in low-turnout elections in which a small percentage of residents actually vote.
- Tax increment financing (TIF) districts, which are designated areas for which property tax revenue can be dedicated for reinvestment, are also not limited by PTELL.
- Specific funds, like the one that allowed Chicago Public Schools to reinstate a property tax levy dedicated to public pension payments, are also not bound by PTELL in their first year.
- Certain bond issues (which are loans taken out by government bodies) are also exempted from the legal limit.
A key factor: Education spending
Dig deeper:
Pappas’ study also noted that local taxing bodies might feel the need to go around PTELL for many reasons, but a key factor is education spending, or a lack thereof.
The State of Illinois provides just 24% of all K-12 public education costs, the lowest percentage of any state, according to the report.
Why does this matter?
Less funding from the state government forces local public school districts to rely more on property taxes to run their schools. They are also limited in the number of other ways they can raise revenue. The study noted that local governments like Cook County have tried to keep property taxes relatively stable by relying on other sources, like a sales tax.
K-12 school districts accounted for about 55% of the average property tax bill in 2025, while cities and villages accounted for only 18%.
For CPS, according to Pappas’s study, the issue is worse because the district pays for its own pension costs, unlike the rest of the school districts in the state.