A: In Illinois, we pay property taxes in arrears, which means each year we pay the prior year’s taxes. For example, in 2022, we pay 2021’s property taxes. Property taxes are due in two installments (due dates are determined by your County) and are based largely on the assessed value of your home, the state equalizer (determined by Illinois state congress), and your area’s tax rate (determined by your local municipality).

If you have an escrow account set up with your lender, your monthly mortgage payments contain 1/12th of the year’s property tax bill (as estimated by the lender using their own formula). When the property tax bill is due, the lender will then take that money out of your escrow account and will pay the property taxes to the County Treasurer on your behalf.

If you do not have an escrow account established, you will be responsible for paying your own property taxes when the bill is due.