In 2003, the 7% Expanded Homeowner Exemption (EHE) went into effect. The 7% EHE is an expanded homeowner exemption that provides additional savings to homeowners by slowing the impact of a home’s reassessment.

State law requires a phase out of the 7% EHE. The savings from the 7% provision will continue to decrease until it expires in each of the three triennial reassessment districts.

The 7% EHE expired for City of Chicago homeowners two years ago. The 7% provision expired for north suburban homeowners this year and they will lose 7% savings on second-installment bills this year. The 7% provision will expire for south suburban homeowners this year and they will not receive 7% savings on second-installments bills received in 2015. Eligible homeowners will continue to automatically receive the benefits of the standard Homeowner Exemption.

The maximum Homeowner Exemption for City of Chicago taxpayers has decreased as follows:

  • Tax Year 2011 (second-installment bills received in 2012) - $12,000
  • Tax Year 2012 (second-installment bills received in 2013) - $7,000
  • Tax Year 2013 (second-installment bills received in 2014) - $7,000

The maximum Homeowner Exemption for north suburban taxpayers will decrease as follows:

  • Tax Year 2011 (second-installment bills received in 2012) - $16,000
  • Tax Year 2012 (second-installment bills received in 2013) - $12,000
  • Tax Year 2013 (second-installment bills received in 2014) - $7,000

The maximum Homeowner Exemption for south suburban taxpayers will decrease as follows:

  • Tax Year 2012 (second-installment bills received in 2013) - $16,000
  • Tax Year 2013 (second-installment bills received in 2014) - $12,000
  • Tax Year 2014 (second-installment bills received in 2015) - $7,000

The state legislature included a sunset provision in the 7% EHE. This provision provides an additional one time deduction of $5,000 off the equalized assessed value of a property the year the home loses all 7% savings. Homeowners residing in the City of Chicago will lose all 7% EHE savings last year and were eligible for the sunset provision savings last year. North suburban homeowners are eligible for the one time deduction this year and south suburban homeowners will be eligible next year.

To qualify for the Sunset Exemption savings this year, north suburban homeowners must have:

  • not received Senior Freeze or Long-Time Occupant Exemptions in the tax year 2013 (on the second-installment bill received in 2014), and
  • a total household income of less than $30,000 for the 2012 income tax year.