Chicago's Soaring Property Taxes Threaten Real Estate Markets

Commercial appeals shift $2 billion in tax burden to homeowners as pandemic disrupts valuations

Mar. 31, 2026 at 2:26am

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A minimalist illustration using bold geometric shapes and primary colors to conceptually represent the imbalance and shifting burden of soaring property taxes in Chicago.Skyrocketing property taxes in Chicago are forcing homeowners and small landlords to flee the city, while commercial landlords appeal assessments that don't reflect pandemic-era realities.Chicago Today

Property taxes in Chicago's Cook County have skyrocketed 182% over the past 30 years, far outpacing 91% inflation, creating an affordability crisis that is reshaping the city's real estate markets. A new study reveals how commercial property owners are successfully appealing assessments, shifting $2 billion in tax burden to residential homeowners who lack the resources to fight back.

Why it matters

The disconnect between soaring property taxes and stagnant incomes is forcing homeowners and small landlords to flee Chicago, while commercial landlords face cash flow challenges from vacant offices. This dynamic creates a doom loop where declining commercial values reduce the tax base, forcing higher rates on remaining properties and incentivizing more appeals and departures.

The details

The property tax crisis is driven by a combination of factors, including a 1,000% increase in taxes within TIF districts, 189% hikes in school district taxes, and a systemic advantage for commercial property owners in the appeals process. While homeowners only appeal 27% of the time, businesses appeal 64% of the time - and they're often successful, with the Board of Review granting $2.7 billion in reductions to just 559 top-dollar Chicago properties.

  • Property taxes in Cook County have increased 182% since 1995.
  • Inflation rose 91% during the same period.
  • Average wages grew 161% from 1995 to 2024.
  • The 2024 Chicago reassessment pushed up values of Class 5A office properties by 21-22%, despite plummeting market values.

The players

Maria Pappas

The Cook County Treasurer who released the new study on the property tax crisis.

JB Pritzker

The Governor of Illinois, who Pappas is targeting for potential reforms.

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What they’re saying

“If property taxes had kept pace with inflation, the median bill would be around $3,057 instead of the actual $5,827.”

— Maria Pappas, Cook County Treasurer

What’s next

Treasurer Pappas is running for reelection and considering a mayoral bid in 2027, positioning this study as a political call to action targeting Governor Pritzker and state lawmakers. Her proposed reforms include closing PTELL loopholes, consolidating local governments, expanding the sales tax base, and revisiting a graduated income tax.

The takeaway

The property tax crisis in Chicago is creating a vicious cycle of declining commercial values, shifting tax burdens to homeowners, and accelerating the exodus of both residents and businesses from the city. Without meaningful reform, the city's real estate markets face a deeply destabilizing future.