Homestead Exemptions

General Homestead Exemption (General or Homestead Exemption)

This annual exemption is available for residential property that is occupied as the principal dwelling place by the owner or a lessee with an equitable interest in the property and an obligation to pay the property taxes on the leased property. The amount of exemption is the increase in the current year’s equalized assessed value (EAV), above the 1977 EAV, up to a maximum of $6,000. The General Homestead Exemption is granted automatically in most cases. It is labeled "homestead exempt" in the computation ladder on the right hand side on your property tax bill.

You may contact the chief County assessment officer at (309) 888-5130 to confirm your eligibility or if you have any questions about this exemption.

Homestead Improvement Exemption (HIE)

This exemption is limited to the fair cash value that was added to the homestead property by any new improvement, up to an annual maximum of $75,000 market value or $25,000 assessed value. The exemption continues for four years from the date the improvement is completed and occupied. The Homestead Improvement Exemption is granted automatically in McLean County.

You can contact the chief County assessment officer at (309) 888-5130 or your township assessor to confirm your eligibility or if you have any questions about this exemption

Returning Veterans’ Homestead Exemption

The Returning Veterans’ Homestead Exemption provides a two-year $5,000 reduction in a property’s equalized assessed value (EAV) to qualifying veterans who return from active duty in an armed conflict involving the armed forces of the United States. To receive this exemption, the veteran must file an application upon their return home.

Disabled Veterans’ Standard Homestead Exemption

The Disabled Veterans’ Standard Homestead Exemption provides a reduction in a property’s EAV to a qualifying property owned by a veteran with a service-connected disability certified by the U.S. Department of Veterans Affairs. A $2,500 homestead exemption is available to a veteran with a service-connected disability of at least 30% but less than 50%, or a $5,000 homestead exemption is available to a veteran with a service-connected disability of at least 50% but less than 70%. A disabled veteran with a 70% or more service-connected disability is exempt from property taxes. An annual application must be filed by the county’s due date of December 31 of the tax year to continue to receive this exemption.  A current benefits letter from the VA must be submitted with the Annual Renewal application.

Specially-Adapted Housing Exemption for Veterans with Disabilities

The current Disabled Veterans’ Homestead Exemption that provides up to a $100,000 reduction in assessed value for federally-approved specially adapted housing will continue to be available through the local Veterans’ Affairs Office.

A Note on Claiming Exemptions

You can claim only one of the following disabled homestead exemptions on your property for a single assessment year. The Disabled Veterans’ Homestead Exemption is up to a $100,000 reduction in assessed value for federally-approved specially adapted housing (35 ILCS 200 / 15-165). The Disabled Persons’ Homestead Exemption is an annual $2,000 reduction in property’s EAV (35 ILCS 200 / 15-168). The Disabled Veterans’ Standard Homestead Exemption is an annual reduction of $2,500 or $5,000 or total exemption of property’s EAV (35 ILCS 200 / 15-169).

Disabled Persons’ Homestead Exemption

The Disabled Persons’ Homestead Exemption provides a $2,000 reduction in a property’s EAV to a qualifying property owned by a disabled person. A disabled person must file an annual application by the county’s due date of December 31 of the tax year to continue to receive this exemption.  Proof of disability must be submitted with the application and yearly renewal.

Physician’s Statement for Disabled Person’s Homestead Exemption

Senior Citizens Homestead Exemption

This exemption is available for residential property that is occupied as a principal residence by a person who is 65 years of age or older during the assessment year. The person must own or have a legal or equitable interest in the property during the assessment year and be liable for the payment of the property tax. The amount of the exemption is a $5,000 ($4,000 in 2012) reduction in the equalized assessed value (EAV) of the property. McLean County requires an initial application, Form PTAX-324, to be filed with the Chief County Assessment Officer.  Proof of age must be submitted with the application.

Low-Income Senior Citizens Assessment Freeze Homestead Exemption 

This exemption allows senior citizens who have a total household income of less than $65,000 ($55,000 for 2017) and meet certain other qualifications to elect to maintain the equalized assessed value (EAV) of their homes at the base year EAV and prevent any increase in that value due to inflation. The amount of the exemption benefit is determined each year based on the following:

  • The property’s current EAV minus the frozen base year value (the property’s prior year’s EAV for which the applicant first qualifies for the exemption)
  • The applicants total household income or enrollment in one of the following alternative income valuation programs:
    • Aid to the Aged, Blind, or Disabled (AABD)
    • The Benefit Access program
    • Low Income Home Energy Assistance Program (LIHEAP)
    • Supplemental Nutirition Assistance Program (SNAP)
    • Senior Citizens Real Estate Deferral

Each year applicants must complete and file Form PTAX-340 with the Chief County Assessment Officer. McLean County mails a PTAX-340 each year to any person currently receiving the Senior Citizens Homestead Exemption. The mailing is usually around the first of February.  Effective 5/27/2020, notarization of the application is no longer required.  Proof of income (prior year's Federal 1040) or a benefit letter from one of the alternative income programs must be submitted with application each year.

Senior Citizens Real Estate Tax Deferral Program

This program allows persons 65 years of age and older to defer all or part of the real estate taxes and special assessments on their principal residences. The program has income limits and other qualification requirements. Contact your County Treasurer’s office at (309) 888-5180 to receive the necessary forms, or further information on the program.

Model Home Assessment and Model Home Cancellation Notice

The model home assessment provision under Section 10-25 states that the assessed value on the property on which the model home is built must be the same as it was before the model home was constructed and before any zoning classification changes were made. If the model home is occupied or is sold, it no longer qualifies for the Model Home Assessment, and the land no longer qualifies for the developer’s exemption. Both the land and the improvements will be assessed at 100% of the fair market value.

Developer’s Assessment

Section 10-30 of the Illinois Property Tax Code gives a preferential property assessment for acreage that is in transition from vacant land to a residential, commercial, or industrial use. The purpose of the preferential assessment is to encourage real estate development by providing a tax incentive that protects a developer from paying increased taxes until a return on the investment can be made. As a result, the preferential assessment is often called the developer’s exemption or developer’s rate.