Illinois on the verge of being downgraded to 'junk bond' status

[MillauFr]

Pacolovestacos answered the sales tax question (varies by county, but yes, our sales tax is around 9%). Our city and county for whatever reason seem higher than others in Illinois, we pay $11,000 a year in property taxes for our home that we purchased for $313,000 two years ago (current valuation is around $315,000 for the house). I should know what the income tax rate is, but I don't...my DH and the our tax preparer would know

So you are paying close to 3% per year in property taxes???? That is outrageous. People in Seattle complain non-stop about property taxes increases and we are only paying 0.5% per year. I paid $5,500 on a $1m dollar house. Not too bad in comparison. Plus no income taxes.

 

[Mackenzie Click-Mickelson]

Illinois was in trouble before that.

Not negating that at all. Just saying that a lot of people liked the idea of paying lower income taxes and the business owners (most commonly the LLCs) liked not having to pay any income tax until it became appearant that it was damaging our state. It wasn't the lowering of the taxes that did KS in but how they went about it especially when they lowballed by a lot the amount of people who would utilize the business owner's tax elimination. That's more of what I was talking about when it comes to "how NOT to do tax reductions/eliminations".

 

[manning]

Corruption. Pure and simple.

An understatement!

Move over California

 

[Planogirl]

So you are paying close to 3% per year in property taxes???? That is outrageous. People in Seattle complain non-stop about property taxes increases and we are only paying 0.5% per year. I paid $5,500 on a $1m dollar house. Not too bad in comparison. Plus no income taxes.

Ours is 2.19 percent of home value. They tried to get an increase recently but that failed. I dont think that it was a coincidence that home valuations increased quite a bit afterwards.

Luckily we have no state income tax!

 

[MillauFr]

Ours is 2.19 percent of home value. They tried to get an increase recently but that failed. I dont think that it was a coincidence that home valuations increased quite a bit afterwards.

Luckily we have no state income tax!

2.19%??? That is crazy. Should never be more than 1%. The problem in Seattle is people are moving up from the Bay Area to avoid the income taxes. Too many people selling $2m houses in San Francisco showing up with plenty of cash.

 

[dosekies]

Woohoo for living in Crook County!

And on a side note...all this talk of taxes - especially property taxes - is making me wonder even more how/why people I went to school with are buying houses right now (I'm 24). I'm worried enough as it is about affording moving into my new apartment next month and my fiancé and I make a good amount of money together! Living in Illinois is crazy right now!

 

[penn19]

2.19%??? That is crazy. Should never be more than 1%. The problem in Seattle is people are moving up from the Bay Area to avoid the income taxes. Too many people selling $2m houses in San Francisco showing up with plenty of cash.

I live in the next town over from Plano Girl and yes, it's crazy. People are making the decision to move out of the area because they can't afford their tax bill anymore. Even if your house is paid off, your property tax is some cases is as much as a mortgage payment.

 

[Mackenzie Click-Mickelson]

I live in the next town over from Plano Girl and yes, it's crazy. People are making the decision to move out of the area because they can't afford their tax bill anymore. Even if your house is paid off, your property tax is some cases is as much as a mortgage payment.

A mortgage payment or a whole year's worth of mortgage payments?

 

[Hikergirl]

Woohoo for living in Crook County!

And on a side note...all this talk of taxes - especially property taxes - is making me wonder even more how/why people I went to school with are buying houses right now (I'm 24). I'm worried enough as it is about affording moving into my new apartment next month and my fiancé and I make a good amount of money together! Living in Illinois is crazy right now!

They will most likely commute. That is how it is here in my part of NY. I often think about how young people can afford to live here, the home prices are outrageous, the taxes are bad, but go 45 minutes south and its impossible.

 

[penn19]

A mortgage payment or a whole year's worth of mortgage payments?

A whole years mortgage payments. My house was assessed at about $525k. And my property taxes are over $12k. If it was just ONE mortgage payment a year I would be thrilled.

 

[lsyorke]

I'll take Illinois' property tax rate! NJ tops the list.

https://taxfoundation.org/how-high-are-property-taxes-your-state/

 

[Mackenzie Click-Mickelson]

A whole years mortgage payments. My house was assessed at about $525k. And my property taxes are over $12k. If it was just ONE mortgage payment a year I would be thrilled.

Oh ok. I assumed you were talking a whole year's worth but was slightly confused. Thanks for clearing that up.

 

[MillauFr]

A whole years mortgage payments. My house was assessed at about $525k. And my property taxes are over $12k. If it was just ONE mortgage payment a year I would be thrilled.

Interesting. I thought Texas had lower property taxes. At least you have no income tax.

 

[Kathryn Merteuil]

I used to live there, I am glad to be gone. It's a shame I still have a lot of money tied up in the teachers retirement system. ugh.

 

[Gary M]

A few years ago Indiana had it put in our constitution that property taxes on your home can be no more than 1% of the assessed value of the house. Now we have to watch the assessed value because the politicians try to increase that. Our state sales tax is 7% and income tax is 3.4%. Then we have all kinds of local taxes. Indiana is raising the gasoline tax by 10 cents per gallon July 1.

 

[Kathryn Merteuil]

A few years ago Indiana had it put in our constitution that property taxes on your home can be no more than 1% of the assessed value of the house. Now we have to watch the assessed value because the politicians try to increase that. Our state sales tax is 7% and income tax is 3.4%. Then we have all kinds of local taxes. Indiana is raising the gasoline tax by 10 cents per gallon July 1.

...and this gas tax is to fix roads!? If that is really the case, maybe they will fix that stretch between Martinsville and Bloomington. That is absolutely dreadful, I will do just about anything to avoid going to Bloomington it is so bad.

 

[daughtersrus]

I'll take Illinois' property tax rate! NJ tops the list.

https://taxfoundation.org/how-high-are-property-taxes-your-state/

We pay 10.7389% of the assessed value of our property. We are in a western suburb in Will County.
We paid $7600 this year. 3 years ago we paid $6300. Market value of our home is about $230,000 now. We paid $145,000 in 1992. If they lower the assessed value, they just raise the tax rate .

Our sales tax rate is 8.5% but 10% on restaurants/take out

 

[Mackenzie Click-Mickelson]

We pay 10.7389% of the assessed value of our property. We are in a western suburb in Will County.
We paid $7600 this year. 3 years ago we paid $6300. Market value of our home is about $230,000 now. We paid $145,000 in 1992. If they lower the assessed value, they just raise the tax rate .

Our sales tax rate is 8.5% but 10% on restaurants/take out

How are you getting 10.7389%!?

If you paid $7,600 off of $230,000 that would mean your tax rate is roughly 3.3%

 

[daughtersrus]

How are you getting 10.7389%!?

If you paid $7,600 off of $230,000 that would mean your tax rate is roughly 3.3%

It's off of the assessed value, not market value.

 

[Mackenzie Click-Mickelson]

View attachment 248085
It's off of the assessed value, not market value.

Ok. The way you phrased your comment it was confusing.

It appears that your assessed value is 33.33% of the fair market value of your property. Knowing that it makes a lot more sense to understand where the $76,000 is coming from which is approximately 33.33% of $230,000 so then your rate of 10.739 makes more sense when knowing it's off of $76,000 and not $230,000. Sorry just the way the original comment was laid out it was missing the $76,000 part.

Obviously 10.739 rate is high regardless.