Illinois Mortgage Calculator

Illinois has the second-highest effective property tax rate in the nation at 2.08%, primarily because the state heavily relies on local property taxes to fund public schools rather than state income tax revenue. Cook County (Chicago area) averages around 2.10%, while collar counties like DuPage and Lake average 2.2–2.5%. Illinois does offer a General Homestead Exemption reducing assessed value by $10,000 for owner-occupied primary residences. Source: Illinois Department of Revenue (https://tax.illinois.gov/research/taxinformation/propertytax.html).

Chicago has one of the highest real estate transfer taxes in the country. The combined city + state rate is $7.50 per $500 of sale price (1.50%). On a $285,000 home in Chicago, the transfer tax is $4,275 — paid by the seller by default. Outside Chicago, the state-only rate is $0.50 per $500 (0.10%), just $570 on the same home. Chicago voters approved a significant transfer tax increase for properties over $1M in 2024 via the Bring Chicago Home initiative. Source: City of Chicago (https://www.chicago.gov/city/en/depts/fin/supp_info/revenue/tax_list/real_property_transfer_tax.html).

The 2026 FHFA conforming loan limit in Illinois is $806,500 for all counties. Illinois has no high-cost counties with elevated limits. Jumbo loans are required for amounts above $806,500. Source: FHFA 2026 Conforming Loan Limit Table (https://www.fhfa.gov/data/conforming-loan-limit).

Illinois has a flat state income tax rate of 4.95% on all taxable income, one of the higher flat rates nationally. Unlike graduated systems, the flat rate means all income levels pay the same percentage. Chicago residents also pay a 0% city income tax (Chicago does not levy a local income tax). When budgeting for a mortgage, plan for approximately 4.95% of gross income going to state taxes in addition to federal withholding. Source: Illinois Department of Revenue (https://tax.illinois.gov).

The Illinois Housing Development Authority (IHDA) runs the main programs. IHDA Access Forgivable provides 4% (up to $6,000) forgiven over 10 years. IHDA Access Deferred offers 5% (up to $7,500) as a 0% deferred loan. The unique SmartBuy program helps buyers with student loan debt by paying off up to 15% of the purchase price toward student loans. Income limits are approximately $80,000–$120,000 depending on county. Visit https://www.ihda.org for current eligibility and participating lenders.