Comparing Taxes

With McHenry County being the 29th highest property taxed county in the nation, perhaps it would be useful to compare tax burdens of those with $300,000 homes in Illinois with those in Indiana and California.

Mortgages are also compared below:

In 2013, people in Illinois, Indiana and California paid the taxes seen above.

In 2013, people in Illinois, Indiana and California paid the taxes seen above.

I’m told that Chicago Teachers Union President Karen Lewis said that people were moving out of Illinois because of the weather.

That might be one reason.


Comparing Taxes — 7 Comments

  1. In western McHenry County, tax rates exceed 4%.

    Monthly payment just to cover our annual property taxes here (not the full mortgage payment –that is additional) would be $666 per month on a $200,000 home, compared to $233 payment per month on a 1.40% property tax rate (the rest of America).

    And to qualify for a $200,000 conforming mortgage loan, buyers would have to prove 36% more income here ($69,942 vs. $51385).

    I believe that narrows the pool of potential buyers for our homes, and drives prices even lower.


    $200,000 loan at 4.1% for 30 years ($200,000 home value)

    Monthly Payment Amount(Principal and Interest)/ MonthlyPayment Amount:Property Taxes/Monthly Payment TOTAL

    In America (1.4% average property tax rate) $966 $233 $1199

    In western McHenry County IL (4% property tax rate) $966 $666 $1632

    Conforming loan calculation (max 28% of income to pay interest, principal, and property taxes) Formula:

    Monthly payment x 12 months (1/.28)= annual income needed to qualify for loan
    Income required to qualify for conforming mortgage loan of $200,000 at 4.1% for 30 years

    In America (1.4% property tax rate) $1199×12(1/.28) =$51385

    In western McHenry County IL (4% property tax rate) $1632×12(1/.28) = $69942

  2. The weather has nothing to do with it.

    What does is the outlandish union salaries and benefits, especially the teachers that the hard working taxpayer has to pay for.

    Eliminate their pensions and the state would have money and people could afford to stay here even though it still is ILLINOIS LAND OF CORRUPTION.

  3. Ms. Lewis is absolutely right. It is the weather.

    The taxpayers cannot weather the storms foisted on them by the greedy politicians in Illinois.

  4. Maybe Lewis should find out of the 37 K Tax Returns, that bolted for Florida from 2000-10, taking $5 B in AGI with them.

    How many are Public Pension recipients?

  5. Illinois Department of Revenue
    2012 Property Tax Statistics

    Table 8, Average Tax Rates 2008 – 2012

    McHenry County
    Total: 10.08
    Residential: 10.07
    Farm A: 9.34
    Farm B: 9.05
    Commercial: 10.31
    Industrial: 10.3
    Railroad: 9.62
    Mineral: 9.99 > About IDOR > Tax Stats > Property Tax Statistics > 2012 > Table 8, Average Tax Rates, 2008 – 2012

    The tax rate is adjusted by the County to match Taxing District Extension with Property Value.

    Taxing District Extension can increase by the lesser of CPI or 5%, plus new construction, plus a few other times.

    Property Value is to a large extent determined by buyers and sellers, which the assessor then adjusts with his calculations, and the county further adjusts with exemptions.

    The County tinkers with the routing of the extension and the calculation of tax rates when a TIF is presents.

    So even though the claim is TIFs are not a tax hike for those outside the TIF District, the math proves otherwise, although that math can be offset by growth resulting from the TIF.

    Can be.

    Not will definitely be.

    But because few if any watchdogs, and few people period outside those in the county that do the tax calculations tracks parcel level data in TIF’s, and because it takes time and effort to follow the bouncing tax ball from start to finish, and because the resulting various tax benefits from growth less TIF incentives also take time and effort to determine, and because there’s just a lot of moving parts in TIFs, there’s not an easy way for taxpayers to determine if existing TIFs are beneficial.

    Much less proposed TIFs which can be thought of as a tax bet using taxpayer dollars.

    I wonder what the Vegas odds would be on any particular TIF bet or even how to quantify such a gamble.

  6. Remember to determine property taxes the Tax Rate is multiplied by EAV (less any exemptions).

    Not Market Value.

    EAV is roughly 1/3 of Market Value.

  7. The Tax Foundation has statistics on overall tax burden.

    As of the date of the unknown date of these statistics, Illinois was ranked 31st & Indiana 8th (1 being best) for the following five taxes.

    – Property Tax
    – Sales Tax
    – Individual Income Tax
    – Corporate Tax
    – Unemployment Insurance Tax

    The above list does not contain all the different types of taxes; there are plenty of other taxes too.

    The Illinois Department of Revenue website has lots of information about Illinois taxes.

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