Illinois Department of Revenue
Publication 108
Illinois Property Tax Credit
About this publication
Publication 108, Illinois Property Tax Credit, will help you gure your property tax credit on your Illinois Individual Income Tax
Return.
The objectives of Publication 108 are to identify
what you may and may not include when you gure a property tax credit.
when you are eligible to take a property tax credit.
what you may include when you gure a property tax credit if you are buying, building, or selling a house.
Get forms and other information faster and easier at tax.illinois.gov
Taxpayer Bill of Rights
You have the right to call the Illinois Department of Revenue (IDOR) for help in resolving tax problems.
You have the right to privacy and condentiality under most tax laws.
You have the right to respond, within specied time periods, to IDOR notices by asking questions, paying the amount
due, or providing proof to refute the IDOR’s ndings.
You have the right to appeal IDOR decisions, in many instances, within specied time periods, by asking for department
review, by ling a petition with the Illinois Independent Tax Tribunal, or by ling a complaint in circuit court.
If you have overpaid your taxes, you have the right, within specied time periods, to a credit (or, in some cases, a refund)
of that overpayment.
For more information about these rights and other IDOR procedures, you may write us at the following address:
Problems Resolution Division
Illinois Department of Revenue
PO Box 19014
Springeld, IL 62794-9014
The information in this publication is current as of the date of the publication. Please visit our website at tax.illinois.gov to verify
you have the most current revision.
This publication is written in the plain English style so the tax information is easier to understand. As a result, we do not directly
quote Illinois statutes and the Illinois Administrative Code. The contents of this publication are informational only and do not take
the place of statutes, rules, and court decisions. For many topics covered in this publication, we have provided a reference to the
applicable section or part of the Illinois Administrative Code for further clarication or more detail. All of the sections and parts
referenced can be found in Title 86 of the Illinois Administrative Code.
Illinois Property Tax Credit
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What is the Illinois Property Tax Credit?
The Illinois Property Tax Credit is a credit on your individual income tax return (Form IL-1040) equal to 5 percent of Illinois
Property Tax (real estate tax) you paid on your principal residence.
You must own your residence in order to take this credit. If you and your spouse each have a principal residence or if
you had two principal residences during the tax year due to the sale of your home, you may claim the tax paid on both
residences when guring this credit. See “What if I sell my house?” for more information.
Note: For tax years beginning on or after January 1, 2017, the Illinois Property Tax Credit is not allowed if the taxpayer’s
adjusted gross income for the taxable year exceeds $500,000 for returns with a federal ling status of married ling jointly, or
$250,000 for all other returns.
Complete Schedule ICR, Illinois Credits, to gure your credit.
You must write your property number (sometimes called “property index number,” “parcel number,” or “permanent number”)
on Schedule ICR when claiming an Illinois Property Tax Credit.
We review the credits you claim and, if necessary, we may ask you to provide additional information to verify your credits.
See Schedule ICR Instructions for more information.
What property tax may I include when I gure a property tax credit?
You may include the following when guring your property tax credit:
• Property tax you paid on your principal residence you owned if it is located in Illinois. Generally, you may gure a credit
on the property tax you paid on your principal residence for the prior year. For example, you may use the property tax
you paid in 2023 for your 2022 residence to gure your property tax credit on your 2023 Form IL-1040.
• Property tax you paid on an adjoining lot to your principal residence, if it is used for residential purposes.
• Prorated property tax you paid in the year you sold your Illinois residence.
• Illinois village tax you paid in the tax year.
• Multi-unit property tax you paid, but only if your principal residence is one of the units. Include only the tax assessed on
the unit that is your Illinois residence.
What may not be included when I gure a property tax credit?
You may not include the following when guring your property tax credit:
• Property tax assessed on property that is not your principal residence. For example, you may not claim a tax credit on
property that you do not live in or consider your principal residence. Examples would be a vacation home, a vacant lot,
rental property, property outside of Illinois, and farm land.
• Property tax assessed on your principal residence that you do not own, even if you paid the tax. For example, if you live
with relatives who own the residence and you paid the property tax but you do not own the property, you may not claim a
tax credit.
• Interest, penalties, or fees you paid because your property tax installments were paid late.
General Information
Contents
General Information
What is the Illinois Property Tax Credit? ................................................................................................................................. 2
What property tax may I include when I gure a property tax credit? ..................................................................................... 2
What may not be included when I gure a property tax credit? .............................................................................................. 2
What if I bought a house? ....................................................................................................................................................... 3
What if I built a house?............................................................................................................................................................ 3
What if I sell my house? .......................................................................................................................................................... 3
May I include back property tax when I gure my property tax credit? ................................................................................... 3
May I include property tax if I am married and ling a separate return? ................................................................................. 3
May I gure a property tax credit if I live in a mobile home? ................................................................................................... 4
May I gure a property tax credit if a portion of my residence is used for business?.............................................................. 4
May I gure a property tax credit if I own farm property? ........................................................................................................ 4
May I receive a refund if my property tax credit exceeds the income tax I owe? .................................................................... 4
May I gure a property tax credit if I purchase my home under a contract for deed? ............................................................. 4
Contact Information ............................................................................................................................................................................ 4
PUB-108 (R-04/24)
Page 3 of 4
Illinois Property Tax Credit
• Any portion of the property tax due that you did not pay in the tax year. For example, if you did not pay one or both
property tax installments on your 2022 taxes due in 2023, you may not include the portion of the 2022 taxes that you did
not pay when guring your property tax credit on your 2023 Form IL-1040.
• Accountant fees or lawyer fees paid in association with your property tax.
• Homeowner’s association dues or fees paid.
• Property tax paid on separately-deeded condominium parking spaces.
• Property tax paid on an out-of-state home.
What if I bought a house?
If you bought a house during the current tax year, you may not use the property tax on that house to gure your credit for that
year.
For the period of time that the seller lived in the house, the tax was prorated and paid by the seller at the time of closing. The
tax for the remainder of the year will be assessed to you and paid in the following year.
For example, you may not use the property tax paid on a house you bought in 2023 on your 2023 return. The seller was liable
for the tax and will take the property tax credit.
If you bought a house during the previous tax year, you may use the property tax on that house to gure your credit providing
you gure only that portion of your taxes that pertains to the time you owned and lived at the property during the tax year. For
example, if you purchased and began living in a house in October 2022, you may use an amount equal to three months of
your total 2022 property tax to gure your 2023 property tax credit.
What if I built a house?
If you built a house, you may not gure a property tax credit for tax you paid on the vacant lot or the new house before it
became your principal residence.
For example, if you built a house in 2022 but did not move in until 2023, you may not include any property tax that you paid
when guring your property tax credit for your 2023 Form IL-1040, led in 2024.
What if I sell my house?
If you sell your house, when guring your property tax credit you may include
• the prior year’s property tax you paid and
• the current year’s prorated tax oset against the sales price at the time of closing.
For example, if you sold your house during 2023, you may include the 2022 tax and the 2023 prorated tax you paid at the time
of closing when guring your 2023 property tax credit on your 2023 Form IL-1040, led in 2024.
However, if the house you are selling is vacant for a period of time before it is sold, you may not gure credit for the period of
time that it was vacant and not your principal residence.
If you moved into your new house in April 2023 but did not sell your other house until January 2024, you may not include the
property tax assessed on the old house for the time it was vacant.
May I include back property tax when I gure my property tax credit?
You may only include back property tax if the tax was paid during the current tax year. However, you may not include interest
penalties or fees when guring this credit.
May I include property tax if I am married and ling a separate return?
If you and your spouse led separate federal returns, each spouse must le a separate Form IL-1040. Each spouse may claim
part of the property tax. The total may not exceed 100 percent of the total property tax paid.
If you led a joint federal return and you are ling a separate Illinois return because one spouse is a resident and one is a
nonresident or part-year resident, the spouse who is ling as an Illinois resident or part-year resident may gure a property tax
credit for the tax paid on the principal residence located in Illinois.
May I gure a property tax credit if I live in a mobile home?
If you own a mobile home, that is your principal residence, and the land on which it is located, you may gure a property tax
credit for the property tax you paid on the land during the tax year.
You may not gure a credit for mobile home privilege tax.
Illinois Property Tax Credit
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Printed by authority of the State of Illinois, Web only, one copy.
May I gure a property tax credit if a portion of my residence is used for business?
If a portion of your principal residence is used for business, you may gure a credit on only the portion of your tax that is not
deductible as a business expense on your federal return. You must subtract federally deductible business expenses, whether
or not you actually took the federal deduction, before you gure your credit.
You must subtract this amount on Schedule ICR, Line 4e.
May I gure a property tax credit if I own farm property?
If you own farm property that includes your principal residence, you may gure a property tax credit on only the portion of the
farm property that is used for your principal residence. You must subtract federally deductible business expenses, whether or
not you actually took the federal deduction, before you gure your credit.
You must subtract this amount on Schedule ICR, Line 4e.
If you do not live on the farm property, you may not claim a property tax credit.
May I receive a refund if my property tax credit exceeds the income tax I owe?
If your property tax credit exceeds the income tax you owe, you may not receive a refund for that amount, and you may not
carry unused credit to other years. Your property tax credit may only reduce the income tax you owe to zero.
May I gure a property tax credit if I purchase my home under a contract for deed?
Under a contract for deed, you get immediate possession of the home but do not obtain legal title until the purchase price is
paid in full. Since you must own the residence, you are unable to claim the property tax credit.
Contact Information
Visit our website at tax.illinois.gov.
For specic phone number and email contacts see our Contact Us page.
Call us at 1 800 732-8866 or 217 782-3336.(TTY 1 800 544-5304)
Write us at Illinois Department of Revenue, PO Box 19001, Springeld, IL 62794-9001.
Call our 24-hour Forms Order Line at 1 800 356-6302.
