McHenry County Sales Tax Increase Outpaces Replaced Property Tax

Officials say new sales tax generated more revenue for mental health services than previous property tax levy.

Published on Mar. 9, 2026

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About a year and a half after McHenry County shoppers began paying a 0.25% sales tax to fund the McHenry County Mental Health Board, officials say the sales tax generated more revenue than the board previously received from property taxes. The sales tax brought in around $11.15 million in fiscal 2025, exceeding the roughly $10.97 million the Mental Health Board got from property taxes in fiscal 2024.

Why it matters

The sales tax is seen as a better funding mechanism for the Mental Health Board, as it provides property tax relief for homeowners. County leaders touted the sales tax as a "huge victory" that allowed them to focus on other priorities beyond mental health funding.

The details

McHenry County voters approved the additional 0.25% sales tax in March 2024, which took effect on July 1, 2024. In exchange, the county removed almost $11 million from the property tax levy that had previously funded the Mental Health Board. County officials say the sales tax revenues have continued to increase, putting the Mental Health Board in a stronger position to address mental health needs and challenges in the community.

  • The sales tax took effect on July 1, 2024.
  • The sales tax generated around $11.15 million in fiscal 2025.
  • The Mental Health Board received roughly $10.97 million from property taxes in fiscal 2024.

The players

McHenry County Mental Health Board

The county agency responsible for providing mental health services and programs in McHenry County.

Scott Hartman

McHenry County Administrator who stated the sales tax was on track to provide more money for mental health services than the previous property tax.

Mike Buehler

McHenry County Board Chairman who said the sales tax referendum was a "win-win" for voters, eliminating a property tax levy and replacing it with a fairer, more sustainable sales tax.

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What they’re saying

“The budget numbers for 2025 prove decisively that voters approved a win-win when they passed the referendum — they eliminated a property tax levy and replaced it with a fairer, more sustainable sales tax.”

— Mike Buehler, McHenry County Board Chairman (County news release)

“I can't help but think' how the Mental Health Board would have fared if it was still funded by property taxes, adding the sales tax allowed the McHenry County Board to focus on other priorities.”

— Scott Hartman, McHenry County Administrator (dailyherald.com)

What’s next

County officials say they have reduced property taxes over the past decade, and the latest fiscal 2026 levy increased to $67.7 million, up from $65 million in fiscal 2025.

The takeaway

The switch from a property tax to a sales tax to fund the McHenry County Mental Health Board has proven to be a successful move, providing more revenue for mental health services while also offering property tax relief for homeowners. This model could serve as an example for other counties looking to find sustainable funding sources for critical community programs.