[Mr Man]

Holy God! $2,000 on $143,000 studio... $8,800 on $325,000 single-family home... property taxes in Chicago are resonable but I'm just amazed how high they are in the suburbs. Geez. How can anyone afford not to live in the city.

[Marcu]

Holy God! $2,000 on $143,000 studio... $8,800 on $325,000 single-family home... property taxes in Chicago are resonable but I'm just amazed how high they are in the suburbs. Geez. How can anyone afford not to live in the city.

In Illinois, schools are mostly funded through property taxes instead if income taxes like they are in some other states. The money lost on property taxes is saved on income taxes. Here's a good chart as to the overall local tax burden.

Rank State State/Local taxes as
% of per capita income
U.S. average 10.10%
1 Maine 13.00%
2 New York 12.00%
3 Hawaii 11.50%
4 Rhode Island 11.40%
5 Wisconsin 11.40%
6 Vermont 11.10%
7 Ohio 11.00%
8 Nebraska 10.90%
9 Utah 10.90%
10 Minnesota 10.70%
11 Arkansas 10.50%
12 Connecticut 10.50%
13 West Virginia 10.50%
14 New Jersey 10.40%
15 Kansas 10.40%
16 Louisiana 10.40%
17 Maryland 10.30%
18 Indiana 10.30%
19 Kentucky 10.30%
20 California 10.30%
21 Arizona 10.20%
22 Michigan 10.10%
23 Wyoming 10.10%
24 Washington 10.00%
25 Iowa 10.00%
26 Mississippi 10.00%
27 Idaho 10.00%
28 North Carolina 10.00%
29 New Mexico 9.90%
30 Illinois 9.80%
31 Georgia 9.80%
32 Massachusetts 9.80%
33 South Carolina 9.70%
34 Virginia 9.70%
35 Pennsylvania 9.70%
36 Oregon 9.60%
37 Colorado 9.50%
38 Nevada 9.50%
39 Montana 9.50%
40 Oklahoma 9.40%
41 Missouri 9.40%
42 North Dakota 9.40%
43 Texas 9.30%
44 Florida 9.20%
45 South Dakota 8.80%
46 Alabama 8.70%
47 Tennessee 8.30%
48 Delaware 8.00%
49 New Hampshire 7.40%
50 Alaska 6.40%
District of Columbia 12.20%

[Steely Dan]

i just purchased my first condo in the city for $165,000 and my annual property tax is $1,650, so $2,000 on a $143,000 condo in the burbs doesn't seem that unreasonble. sure, it's higher than what i'm paying in the city, but only marginally so.

[Mr Man]

i just purchased my first condo in the city for $165,000 and my annual property tax is $1,650, so $2,000 on a $143,000 condo in the burbs doesn't seem that unreasonble. sure, it's higher than what i'm paying in the city, but only marginally so.

It works out to 40% higher property taxes. This is good for the City of Chicago. Although homes in the city may be more expensive, it's probably a better deal. :shrug:

[Mr Man]

In Illinois, schools are mostly funded through property taxes instead if income taxes like they are in some other states. The money lost on property taxes is saved on income taxes. Here's a good chart as to the overall local tax burden.

I'm just talking about Illinois though. People are probably better off owning in Chicago than the surrouding suburbs. The only real negative to Chicago is CPS, but if you don't have kids, that's not an issue.

It's amazing when I hear people leaving the city for the suburbs and their reasoning is... "it's cheaper."

[MayorOfChicago]

Renting, I love the flat 3% income tax no matter how much you make.

[richb]

One of the reasons Northwest Indiana is popular for people from Chicago and the Illinois suburbs is the MUCH more affordable property taxes (as well as other taxes as well). Illinois taxes drive more people out then most on this board would probally think are leaving. I see it every day as a realtor. My folks made the move out of Illinois in 1993. They still pay less in taxes now then they did in Illinois in 93! And they have a much nicer house then they did in Illinois.

[Sulley]

LMAO!!!

I JUST read this thread.

The property taxes on my house in Buffalo (a 1968 split level that cost 108k with about 1500 square feet) are $4,000 a year.

Chicago has nothing on us.

[brian_b]

One of the reasons Northwest Indiana is popular for people from Chicago and the Illinois suburbs is the MUCH more affordable property taxes (as well as other taxes as well). Illinois taxes drive more people out then most on this board would probally think are leaving. I see it every day as a realtor. My folks made the move out of Illinois in 1993. They still pay less in taxes now then they did in Illinois in 93! And they have a much nicer house then they did in Illinois.

Northwest Indiana has a much lower cost of living than Illinois if you are looking for a suburban-type setting (SFH + yard). It is not cheaper tax-wise. Income taxes are higher in Indiana, as are things like vehicle registration fees. Property taxes are much higher than in Chicago! A home valued at $150,000 in Gary is going to be taxed at $6000-8000 a year! My parents just paid $4300 for their house in Portage in 2006; it's worth about $160,000.

What makes Northwest Indiana attractive to Illinois residents is the fact that they can keep their downtown Chicago job (AND SALARY!!!) and live in an area that is just as close to downtown as their previous suburb with the same or better connection to downtown. It's less crowded, less crime (east of Gary that is), public schools are just as good, better access to Lake Michigan, and much much more public parkland/greenspace (thanks to the Dunes State Park and Dunes National Lakeshore). For all of that, you pay 1/3 - 1/5 as much for your house.

If a house in Indiana cost the same as a comparable house in Illinois, the tax differences would make Indiana much more expensive. Indiana only has an absolute tax advantage because the homes are cheaper.

[Chicago103]

Some places in the city on the southwest and southeast (near Indiana border) sides have incredibly low property taxes, my grandma's property tax on her three bedroom house in city limits worth about $200K was only $900.

[SuburbanNation]

i've been noticing a trickle of chicago expats to st. louis city, perhaps this is a contributing factror? same with milwaukee (though i don't know what the property taxes are like there).