Purchase Tips · June 21, 2025
How Property Taxes Work in Illinois, Florida, and Indiana
Property taxes are one of the largest ongoing costs of homeownership and they vary dramatically by location. Here is how they work in IL, FL, and IN.
Property taxes can make a significant difference in your total monthly housing cost.
How Property Taxes Are Calculated
Tax equals Assessed Value multiplied by the Mill Rate. The assessed value is determined by the local assessor — it may equal market value or be a percentage of it. The mill rate varies by school district, municipality, and county.
State Comparisons
Illinois: Among the highest effective rates in the nation — typically 1.8%-2.5% of market value. On a $350,000 home: $6,300-$8,750/year ($525-$729/month added to your payment).
Indiana: More moderate at 0.8%-1.2%. Indiana's Circuit Breaker Cap limits homestead property taxes to 1% of assessed value. On a $350,000 home: $2,800-$4,200/year ($233-$350/month).
Florida: No state income tax; property taxes run 0.8%-1.5% in most counties. The Homestead Exemption deducts up to $50,000 from assessed value for primary residences. Save Our Homes caps annual increases at 3% for homesteads. On a $350,000 home: $2,800-$5,250/year before exemption.
Escrow
Most lenders collect 1/12 of your annual tax bill monthly and pay it directly when due. Your escrow payment adjusts annually as taxes change.
HMS provides typical tax estimates for properties you are considering. Call 309-222-8286.