Property taxes continue to be one of the largest ongoing expenses for homeowners and rental property investors throughout Chicago and Cook County.

With the latest property tax bills showing another increase, understanding how these expenses affect your property's value, monthly costs, and overall investment performance is more important than ever.

Whether you own a single-family home, a two-flat, or a larger rental property, rising property taxes can influence your financial decisions.

What the Latest Cook County Property Tax Numbers Show

According to the Cook County Treasurer's Office, property taxes for the 2025 tax year, billed in 2026, increased by approximately $743.8 million countywide.

That brings the total property tax burden to more than $19.9 billion, an increase of approximately 3.9% compared with the previous year.

Homeowners are responsible for approximately $593.4 million of the additional tax burden.

The increases vary considerably depending on location, property classification, assessments, and local taxing districts.

In the north and northwest suburbs, the median homeowner property tax bill increased 6.7%, reaching approximately $8,007.

These figures reinforce an important point: Property owners should pay close attention not only to the market value of their real estate, but also to the ongoing cost of owning it.

What Higher Property Taxes Mean for Chicago Homeowners

For homeowners, increasing property taxes can affect affordability and long-term financial planning.

If your mortgage payment includes a tax escrow account, higher property taxes may eventually result in a larger monthly mortgage payment.

Homeowners should periodically review their tax bills to verify that the property information is accurate and that they are receiving any exemptions for which they qualify.

It's also important to understand the relationship between your property's assessed value and your actual tax bill.

A higher tax bill does not automatically mean your property's assessment is incorrect. Changes in local tax levies, assessments, and exemptions can all affect the amount owed.

If you believe your property's assessment is inaccurate, review the applicable appeal procedures and deadlines.

Being proactive can help avoid unnecessary expenses.

What Rising Property Taxes Mean for Rental Property Owners

For landlords and investors, property taxes are more than an annual bill. They are an operating expense that directly affects profitability.

When property taxes rise alongside insurance premiums, maintenance expenses, utilities, and repair costs, the financial performance of a rental property can change substantially.

Consider a rental property that generates consistent income but experiences higher annual operating expenses.

Even if rental income remains steady, the property's net operating income can decline when expenses increase.

That is why rental property owners should regularly evaluate:

• Rental income and current market rents
• Property taxes and insurance expenses
• Maintenance and capital improvements
• Vacancy and tenant turnover
• Mortgage obligations and available cash flow

Increasing rent may be appropriate in some situations, but rental pricing should always reflect local market conditions and applicable regulations.

Charging more simply because expenses have increased does not necessarily mean the market will support a higher rent.

The goal is to maintain competitive rental pricing while protecting the property's long-term financial performance.

Should You Hold, Improve, or Sell Your Property?

Higher ownership expenses sometimes cause property owners to reconsider their long-term plans.

Should you continue holding the property, invest in improvements, refinance, or consider selling?

There is no single answer that applies to every situation.

For some owners, holding a property may continue to make sense because of its rental income, financing terms, and long-term investment potential.

Others may find that substantial maintenance expenses, increasing taxes, changing market conditions, or new investment opportunities make selling worth evaluating.

Before making a decision, it's important to examine the complete financial picture.

That includes current market value, outstanding mortgage obligations, operating expenses, rental income, potential capital improvements, and the costs associated with selling or refinancing.

Good real estate decisions should be based on realistic numbers, not assumptions.

A Practical Approach to Real Estate Ownership

Real estate ownership requires more than simply watching property values rise and fall.

Understanding expenses, market conditions, and the financial performance of a property is just as important.

I'm John Castelli, Designated Managing Broker of Castelli Management, LLC. I work with homeowners, landlords, and investors throughout Chicago and the surrounding suburbs.

If you have questions about your property's value, operating expenses, or whether it makes sense to hold, improve, or sell, contact me to discuss your situation. You can also request a free home valuation to understand what your property is worth in today's market.