Exemptions
Homestead Exemptions reduce the taxable value of a property by a specific amount prior to taxes being calculated; the actual tax savings depend upon the tax rate for a specific property. They are typically available for properties that are occupied by their owners or persons with legal or equitable interest as of January 1 of the taxable year.
Example of the Impact of Exemptions
Each exemption reduces the tax burden of a qualifying property by reducing its taxable value. In Kane County, tax rates generally range from about 6.50% to 11.25%, with a median rate of 9.00%; they can be higher in special-service areas.
In the following example, a senior citizen homeowner lives in a house with a fair cash value of $225,000; the homeowner is living off savings, and has an income that qualifies for the senior freeze with a base-year EAV of $56,657. The benefits of the available homestead exemptions, based on a property tax rate of 9.0%, are:
Example of the Impact of Exemptions showing tax comparison with and without exemptions
| Property Value | $225,000 | | $225,000 |
| Level of Assessment | 33.33% |
| 33.33% |
| Equalized Assessed Value | $74,993 | | $74,993 |
| Exemptions | | | |
| General | | | ($8,000) |
| Senior Citizen | | | ($8,000) |
| Senior Freeze ($56,657 base year) | | | ($18,336) |
| Net Valuation | $74,993 | | $40,657 |
| Estimated Tax Rate | X 9.00% | | X 9.00% |
| Tax Dollars Due | $6,749 | | $3,659 |
|
Total Tax Savings from exemptions: $3,090 (46%)
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