O'Connor discusses the Illinois equalization

Understanding Illinois equalization.

CHICAGO, IL, UNITED STATES, May 20, 2025 /EINPresswire.com/ -- For individuals paying property taxes in Illinois, or those seeking to understand them, one of the most complex and often misunderstood aspects is the process of equalization. This factor is unique to Illinois and adds another matter to the state’s already complex and high-dollar property tax situation. With some of the highest property taxes in the United States, it is important that every taxpayer across Illinois understands how this policy affects valuations.

Calculated using the equalization factor, this multiplier can cause frustration to property owners and accountants everywhere. O'Connor will define what exactly the equalization factor is, and why it exists.

Assessment Ratio

Before equalization can be discussed, assessment ratio must be understood. The assessment ratio is the percentage of a property that is taxed every year. With the exception of farmland, property in Illinois has an assessment ratio of 33.33%, while property in Cook County has a ratio of 10% for residential and 25% for commercial properties. When a property is valued by either a local assessor or the Cook County Assessor’s Office, the ratio is applied to that number to determine the base amount that must be taxed. Equalization is an attempt to bring assessed property, real market value, and the assessment ratio all into agreement.

Defining Equalization

A township, county, or even the state of Illinois must balance out real market value with assessed value for every property. This is achieved by conducting a sales ratio study of properties in a certain jurisdiction for the three years previous to the tax year. The median of these sold properties is then used to create a real market value. This value is compared to the assessed value, to see if real market value meets the required assessment ratio.

If it is discovered that properties in a township are going above or below the assessment ratio, then an equalization factor is issued. The properties that were assessed in excess will see a negative equalization factor, while those that were on the low end will see a positive one. This is an attempt to even out the burden on taxpayers, so that each taxing body can get an equal portion of taxes for an area they serve.

Due to the many counties and townships throughout Illinois, it is easy for one community with a similar value to pay significantly more than another community. The equalization factor was introduced in the 1970s as a way to balance things for the people of Illinois with the possibility of granting equitable taxes to all. Uniformity is the name of the game, and equalization is a way to smooth out the many rough edges created by the Illinois tax system.

Intra-County Equalization

This is equalization at the township or county level. When local assessors note discrepancies between previous assessments, they will issue equalization multipliers with the intent on balancing things out. Intra-county equalization is vital for keeping local governmental bodies like school districts funded. When going perfectly, each township assessor is able to correctly adjust property values with equalization, so that the county or state will not need to intervene.

Inter-County Equalization

The Illinois Department of Revenue conducts their own sales ratio tests on all 101 counties found in the state. IDOR also collects information from each county assessor, to verify that the 33.33% assessment ratio is being maintained. This is valuable oversight to make sure that both taxing and spending are done in a fair manner. Then IDOR will only issue an equalization factor of 1.00, meaning no county-wide change. If a county does not adequately address inconsistencies in their assessments, then IDOR will hand out a county-wide equalization factor that could increase or decrease every property in the county.

Tax Increases Outside of Assessment

One of the main implications of equalization factors is that it can raise property values and taxes in years outside of reassessment. Illinois does a reassessment every four years, with Cook County doing so every three years. This cycle is expected by Illinois taxpayers, and they can brace for the inevitable increase. But equalization can lead to sneaky increases to the annual tax bill.

Since property taxes and equalization rates can be raised outside of reassessments, many taxpayers have found themselves ambushed by an increase in levies that are already double that of the national average. Worse yet, these increases are not even given to residents in the form of letters or individual communication. With windows to appeal valuations being small and tied to townships, many taxpayers find themselves with little recourse when they receive their taxes in May.

Let O’Connor Watch Your Back

Equalization is a very confusing variable that most residents in Illinois do not know how to deal with. With constant deadlines connected to equalization notices, appeals, value increases, and more, it is easy for residents to fall victim to outrageous taxes. O’Connor is here to help protect you and your property. O’Connor will automatically protest your property taxes and valuations every year, never missing a filing date or deadline. You can relax, knowing that everything is being done on your behalf.

You have the right to appeal your taxes, even in years when you are not being reassessed. There will be no reassessment of Illinois until 2027, so the only way to achieve tax relief until then is to practice your right to appeal. Our clients in Cook County must be especially vigilant, as equalization has hit neighborhoods especially hard in the past few years.

About O’Connor:
O’Connor is one of the largest property tax consulting firms, representing 185,000 clients in 49 states and Canada, handling about 295,000 protests in 2024, with residential property tax reduction services in Illinois, New York, Texas, and Georgia. O’Connor’s possesses the resources and market expertise in the areas of property tax, cost segregation, commercial and residential real estate appraisals. The firm was founded in 1974 and employs a team of 1,000 worldwide. O’Connor’s core focus is enriching the lives of property owners through cost effective tax reduction.

Property owners interested in assistance appealing their assessment can enroll in O’Connor’s Property Tax Protection Program ™. There is no upfront fee, or any fee unless we reduce your property taxes, and easy online enrollment only takes 2 to 3 minutes.

Patrick O'Connor, President
O'Connor
+1 713-375-4128
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