Understanding Property Taxes: What Chicago, Illinois Home Buyers Should Know in Dallas
- Nitin Gupta, CRS, REALTOR
- Jun 25
- 3 min read
Relocating from Chicago to Dallas? While Texas boasts no state income tax, property taxes play a significant role in funding local services. Understanding the differences between Illinois and Texas property tax systems is crucial for a smooth transition
Comparing Property Tax Rates: Chicago vs. Dallas
Location | Effective Property Tax Rate | Median Property Tax Bill |
Chicago, IL | 2.07% | $6,285 |
Dallas County, TX | 1.74% | $5,040 |
Note: Rates and bills are approximate and can vary based on specific property values and exemptions
Key Differences in Property Tax Systems
1. Assessment Methods
Illinois: Property taxes are based on the assessed value, which is a percentage of the market value. The Cook County Assessor determines this value, and the tax rate is applied accordingly
Texas: Properties are appraised annually at market value by county appraisal districts. The tax rate is then applied to this appraised value
2. Taxing Authorities
Illinois: Multiple taxing bodies, including counties, municipalities, school districts, and special districts, levy property taxes
Texas: Similar to Illinois, various entities like counties, cities, school districts, and special districts impose property taxes.
Homestead Exemptions and Relief Programs
Texas: Homeowners can apply for a homestead exemption, which reduces the taxable value of their primary residence. As of 2025, the general homestead exemption is $140,000, with an additional $60,000 exemption for seniors and individuals with disabilities
Illinois: Cook County offers several exemptions, including the Homeowner Exemption, Senior Citizen Exemption, and others, which can reduce the assessed value of a property.
Important Considerations for Chicago Transplants
Budgeting: While Texas lacks a state income tax, higher property taxes can offset some of the savings. It's essential to factor this into your financial planning.
Appraisal Protests: In Texas, if you believe your property's appraised value is too high, you have the right to protest the valuation. This process can potentially lower your tax liability.
Payment Deadlines: Texas property taxes are due by January 31 of the following year. Late payments incur penalties and interest.
Conclusion
Understanding the nuances of Texas's property tax system is vital for a seamless relocation from Chicago. By familiarizing yourself with assessment methods, exemptions, and payment obligations, you can make informed decisions and avoid unexpected financial surprises.
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