Illinois Grapples with Reliance on Property Taxes

Experts explore potential solutions from other states to address rising property tax burdens

Published on Feb. 27, 2026

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NBC Chicago examines the heavy reliance on property taxes in Illinois and looks at potential solutions from other states, including Michigan's shift to a sales tax-based school funding system, Minnesota's tax-base sharing program, and Florida's proposals to eliminate property taxes for homeowners.

Why it matters

Illinois homeowners are paying significantly more in property taxes compared to 2019, with the tax burden shifting to residents as commercial property values declined in the Loop. Experts say Illinois is one of the most reliant states on property taxes to fund schools and public services, leading to calls for reform.

The details

According to data, Illinois homeowners are paying 24% more in property taxes on average than in 2019. This squeeze was highlighted last year for families on Chicago's South and West sides as the tax burden shifted from commercial properties in the Loop. Experts say Illinois is the second most reliant state on property taxes to fund schools and public services. Potential solutions explored include Michigan's shift to a sales tax-based school funding system, Minnesota's tax-base sharing program, and Florida's proposals to eliminate property taxes for homeowners.

  • In 2019, Illinois homeowners were paying lower property taxes on average.
  • Last year, the property tax burden shifted to homeowners as commercial property values declined in the Loop.

The players

David Merriman

A professor of public policy, management, and analytics at the University of Illinois Chicago who is heavily involved in property tax reform.

Ron DeSantis

The Governor of Florida who has called for property taxes to be eliminated.

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What they’re saying

“Where I would say I would like to put our priorities on is less reliance on the property taxes. Find other systems to fund the schools.”

— David Merriman, Professor of public policy, management, and analytics (NBC Chicago)

“Our citizens have been squeezed by escalating property tax assessments and millage increases at the local level.”

— Ron DeSantis, Governor of Florida (NBC Chicago)

What’s next

Three different proposals are on the table in Florida to eliminate property taxes, though opponents are concerned city budgets would be slashed and city services would be cut.

The takeaway

Illinois' heavy reliance on property taxes to fund schools and public services has led to growing burdens on homeowners, prompting experts to explore solutions from other states like Michigan's sales tax-based school funding and Minnesota's tax-base sharing program. However, any reforms would need to ensure adequate funding for critical services.