Homeowners Hammered by Real Estate Tax Abuse and Errors
By Don DeBat
As the old saying goes, everyone suffers two inescapable maladies in life—taxes and death. However, when the problem is Cook County property taxes, the adage should include a few other words: “tax abuse, errors, and bureaucratic red tape”
According to the latest tax-bill analysis by Cook County Treasurer Maria Pappas, homeowners face a sharper increase in property taxes this year compared to businesses—a result of home values climbing much faster than commercial real estate values, which are slumping.
By October 1st, local governments across the county are seeking a whopping $743.8 million in new taxes, bringing the total amount property owners must pay to more than $19.9 billion, an increase of about 3.9% — well above the annual regional inflation rate of 3.1%.
Over the past 30 years, tax increases have pushed up the total tax tab by $12.9 billion, or 184%, twice the 91% increase in the local cost of goods and services.
The increase in the overall tax burden is a result of local governments—school districts, cities, villages, the county and park districts—continually seeking more money from property owners.
This year marks the 32nd annual increase in a row.
Homeowners must pay $593.4 million, or a hefty 80%, of this year’s tax increase, with owners of businesses— commercial buildings, industrial plants and large multifamily properties, and vacant land picking up the rest.
It's the fifth year in a row that an increased tax burden has fallen mostly on homeowners as commercial values have declined or grown at a far smaller pace than those for homes, a trend that has continued since the COVID-19 pandemic.
“Local governments need to learn to do more with less, particularly in these precarious economic times,” Pappas advised. “Taxpayers need to vote.”
Tax Errors and red tape add to the burden
Earlier this year, the Home Front column traced the timeline on one senior-citizen property owner’s delayed refund based on a whopping 21.5% 2024 tax increase on a Lincoln Park 3-flat.
In 2023, the property owner, living on a fixed income, applied for a long-awaited Senior Tax Freeze Exemption with the Cook County Assessor. The exemption was finally approved with the issuance of a “Certificate of Error” in January, 2026. Here are the facts:
• Income documents and required forms filed with the Assessor in 2023 showing the senior’s net income was under $65,000—the qualifying limit for the freeze.
Unfortunately, no action was taken by the Assessor in 2024. Total 2023 tax bill—after the owner’s Homeowner Exemption ($662) and Senior Exemption ($529) were subtracted—was $27,628.
• More documents and required forms were filed again in 2024 showing the property owner’s net income was under the $65,000, qualifying limit for the freeze. Unfortunately, no immediate action was taken by the Assessor.
After Homeowner and Senior Exemptions were subtracted, the property owner paid a total 2024 tax bill of $33,565.94. The 1st Installment was $13,409. The 2nd Installment rose to $20,157.
The total 2024 tax increase was 21.5%. To cover the increase, the property owner’s lender increased his mortgage payment to $7,883 a month from $5,826 to cover tax-escrow shortage.
• The Senior Tax Freeze finally was granted in January of 2026 based on documents submitted in 2023. As a result of the Senior Freeze, the property’s assessed value was lowered from $173,001 to $130,945.
The assessment reduction created by the Senior Tax Freeze approval resulted in a reduced 2024 total property tax bill on the 3-flat of $23,068—a savings of $10,498.
• A Certificate of Error was issued by the Cook County Assessor in January of 2026. In February, the lender issued an escrow refund of about $1,605, and lowered the borrower’s monthly loan payment to $5,446.
• After about 60 days, the senior citizen property owner finally received a 2024 tax refund of $10,498 from the Cook County Treasurer.
• However, when the second installment of the 2025 tax bill was posted online last week, despite the freeze, the tax bill on the Lincoln Park 3-flat jumped back up to $19,286 from the first installment bill of $12,687.
The shocked senior citizen checked the Cook County Assessor’s website and found that his hard fought and won Senior Freeze Exemption for 2025 had not been recorded in Assessor Fritz Kaegi’s computer.
The homeowner is racing to appeal again, seeking a corrected second installment tax bill to prevent a huge increase in his mortgage escrow payment.
Elderly brain-cramp penalty
Not all errors are the fault of Cook County government. Sometimes they are caused by human error when an elderly homeowner more concerned with his or her medical appointments and procedures more than paying property taxes on time.
Suffering from cardio issues and chronic back pain, one Northwest Side bungalow owner left town on a lengthy vacation, and simply had a brain cramp. The homeowner forgot to pay the first installment of his real estate taxes, which were due March 1, 2026. His taxes were not being escrowed by his lender.
If you pay your property taxes late, the Cook County Treasurer charges you an interest rate of .075% a month. That’s 9% a year. So, when the elderly homeowner got back to town, he discovered he was six months late with his first installment tax payment.
Because of the late fee penalty, the first installment of 2025 taxes on the bungalow had grown $678 to $4,274. He promptly paid the passed-due first installment online. The elderly homeowner also marked his calendar for October 1st when the second installment of taxes—another $3,595—is due.
“Mistakes happen every year. Thousands of homeowners also run into problems often when lenders mishandle escrow accounts,” Pappas said. “Some lenders pay late. Some pay on the wrong Property Index Number (PIN). Some simply don’t pay at all.”
If you don’t notice an error, it could cost you thousands of dollars. “In seriously delinquent cases, an unpaid tax debt can cause your property to be listed in the annual state-mandated tax sale which adds costs and could even cost you your home.” Pappas warned.
After each tax installment due date, property owners are advised to visit cookcountytreasurer.com, click on the purple box and enter your address or PIN to confirm the payment.
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For more housing news, visit www.dondebat.biz. Don DeBat is co-author of “Escaping Condo Jail,” the ultimate survival guide for condominium living. Visit www.escapingcondojail.com.
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