Property Tax Exemptions

Please note the Assessment office will NOT be accepting homestead exemption applications in person until further notice.  Completed applications can be mailed to 112 E. Second Street, Dixon, IL  61021.  The application deadline for the Leasehold Exemption is July 1, 2020.  All other exemptions are due Dec. 31, 2020.  Staff will be responding to emails and phone calls during this time.  

General Homestead Exemption (Owner-Occupied Exemption)

This exemption is available for residential property that is occupied by the owner(s) as their principal dwelling place. This exemption is based on occupancy of January 1st of the tax year and is administrated by the Chief County Assessment Office. Renewal is automatic. The amount of exemption is equal to the current year’s assessment over the 1977 assessment, with a maximum of $6,000.

General Homestead Exemption - Leasehold (PDF)

An exemption is available to single-family, residential property if the lessee has a leasehold interest in the property and is responsible for paying the real estate taxes per his/her lease agreement. 

This exemption is based on occupancy of January 1st of the tax year and is administrated by the Chief County Assessment Office. Applications must be made by July 1 of each tax year. The amount of the exemption is equal to the current year’s assessment over the 1977 assessment, with a maximum of $6,000. 

Homestead Improvement Exemption

This exemption is available to qualified homeowners who have made improvements to their principal dwelling place. Exemption is up to $75,000 of the value of the home improvement if the improvement resulted in an assessment increase. This exemption continues for up to four years from the completion of the improvement. 

Your township assessor should submit an application to the Chief County Assessment on your behalf at the time the improvement is assessed. Note: if a building permit is required for the home improvement that is a requirement for this exemption.

Senior Citizen Homestead Exemption (PDF)

An exemption is available to qualified senior citizens who are at least 65 years of age. The Chief County Assessment Office administrates this exemption. Homeowners should apply for this $5,000 exemption anytime during the year they turn 65. 

Property that is occupied as a residence by a person who is eligible for this exemption will be granted a pro-rata exemption for the assessment year. The application (PDF) must be made by December 31st of the tax year. Renewal is automatic.

Senior Citizen Assessment Freeze Exemption (PDF)

This exemption is available to senior citizens if a residential property is owned and occupied by a person at least 65 years of age with a household income of $65,000 or less. This exemption is based on occupancy of January 1 of the application year and January 1 of the year prior to application and is administrated by the Chief County Assessment Office. 

The amount of the exemption is equal to the current year’s assessed value over the assessed value prior to the first qualifying year. Annual applications are required. View step-by-step instructions (PDF) and other general information (PDF).

Disabled Veteran’s Exemption (Specially Adapted Housing)

This may exempt up to an assessed value of $70,000. The Illinois Department of Veteran’s Affairs determines eligibility for this exemption. For questions, call 217-785-2252.

Returning Veterans’ Homestead Exemption (PDF)

Must be owned and occupied as the primary residence of a veteran returning from an armed conflict involving the armed forces of the U.S. who is liable for paying taxes on the property. 

"Veteran" means an Illinois resident who has served as a member of the U.S. Armed Forces, Illinois National Guard, or the U.S. Reserve Forces. This is a $5,000 exemption for the year the veteran returns from active duty only. Completed applications are submitted to the CCAO

Disabled Persons’ Homestead Exemption (PDF)

Must be owned and occupied as the primary residence of a disabled person that is liable for paying the property taxes. "Disabled Person" means a person unable to engage in any substantial, gainful activity by reason of a medically determinable physical or mental impairment, which can be expected to result in death or has lasted or can be expected to last for a continuous period of not less than 12 months. The disabled person must submit proof of disability. Applications and annual renewal verification (PDF) must be submitted to the Assessment Office each year. This annual exemption is $2,000.

Disabled Veterans’ Standard Homestead Exemption (PDF)

Veterans with a service-connected disability, as certified by the U.S. Department of Veterans Affairs are eligible for an annual reduction in the EAV of the primary residence. If the service-connected disability is between 30 to 49%, the reduction is $2,500, between 50 to 69% the reduction is $5,000, and if 70% or greater, the reduction is equal to the non-farm equalized assessed value of the veteran’s primary residence. 

This exemption carries over to surviving spouse as long as the spouse has a legal interest in the property, permanently resides there and does not remarry. If the surviving spouse sells the house and buys another, the exemption transfers to the new residence as long it is used as the primary residence and the spouse does not remarry. 

"Veteran" means an Illinois resident who has served as a member of the U.S. Armed Forces on active duty or state active duty, a member of the Illinois National Guard, or a member of the U.S. Reserve Forces and who has received an honorable discharge. Completed applications are submitted to the Chief County Assessment Office. Annual renewal (PDF) is required.