When you are purchasing a home, it is important to understand the economics of the home and property taxes are a huge factor in the equation.  So, just how do you figure out what your taxes will be?

It is not a good idea to simply look at what the current owner is paying because there are many variables.  In Chicago, we typically tell our clients to expect a tax bill at about 1.5% of the purchase price.  In Du Page County, the range is from about 1% in Oak Brook all the way up to nearly 3% in Glendale Heights. Oak Brook is home to many large corporations and of course Oak Brook mall which helps keep property taxes low.

So, how did we come up with the 1-3% range?  Below is the formula used in Du Page County to calculate property tax.

Du Page County Tax Calculation

1. A home’s fair market value:  $5000,000 – Fair Market Value is defined as the amount a buyer would be willing to pay for the property.
2. Tax assessor’s adjustment:  $500,000 x 33% = Equalized Asessed Value – In Du Page county, the assessor uses of 1/3 of a homes fair market value in determining DuPage County property taxes.
3. Equalized assessed value: $165,000  –  This is the adjusted fair market value of your property used for property tax calculation purposes.
4. Property tax rate: 5% **Rates vary by city as indicated in the table below – 5% used as a simplification for example.
5. Property tax calculation:  $165,000 x .05  -  Equalized assessed value multiplied by a property tax rate of 5% .
6. Total property tax :  $8,250

Du Page County Real Estate Property Tax Table

In communities where there are more than one township, the higher of the tax rates is shown in the table above.