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
- A home’s fair market value: $500,000 – Fair Market Value is defined as the amount a buyer would be willing to pay for the property.
- 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.
- Equalized assessed value: $165,000 – This is the adjusted fair market value of your property used for property tax calculation purposes.
- Property tax rate: 5% **Rates vary by city as indicated in the table below – 5% used as a simplification for example.
- Property tax calculation: $165,000 x .05 – Equalized assessed value multiplied by a property tax rate of 5%
- Total property tax : $8,250
|Rank||City||Rate||As % of purchase price|
|10||Elk Grove Village||7.0656||2.36|
|30||Oak Brook Terrace||4.6839||1.56|
In communities where there are more than one township, the higher of the tax rates is shown in the table above.
If you are looking for the 2013 DuPage Property Tax Rate, click here for the most current property tax rates in DuPage County.