Illinois Property Tax Credit
Page 2 of 4 PUB-108 (R-01/09)
What is the Illinois Property Tax Credit?
The Illinois Property Tax Credit is a credit on your individual income
tax return equal to 5 percent of Illinois Property Tax (real estate tax)
you paid on your principal residence.
You must own your residence in order to take this credit.
For tax years
2008 and after, complete Schedule ICR, Illinois Credits, to
fi gure your Illinois Property Tax Credit.
2007 and earlier, complete the Homeowner’s Property
Tax (PT) Worksheet to fi gure your Illinois Property
Tax Credit. You will fi nd a copy of this worksheet in the
Form IL-1040 Instructions for the tax year you are fi ling.
What property tax may I include when I fi gure a
property tax credit?
You may include the following when you fi gure your property tax
credit:
Property tax you paid on your principal residence you owned
if it is located in Illinois. Generally, you may fi gure a credit on
the property tax you paid on your principal residence for
the prior year. For example, you may use the property tax
you paid in 2008 for your 2007 residence to fi gure your
property tax credit on your 2008 Form IL-1040.
Property tax you paid on an adjoining lot to your principal
residence, if it is used for residential purposes.
Prorated property tax you paid in the year you sold your
Illinois residence.
Illinois village tax you paid in the tax year.
Multi-unit property tax you paid, but only if your principal
residence is one of the units. Include only the tax assessed on
the unit that is your Illinois residence.
What may not be included when I fi gure a
property tax credit?
You may not include the following when you fi gure your property tax
credit:
Property tax assessed on property that is not your
principal residence. For example, you may not claim a
tax credit on property that you do not live in or consider
your principal residence. Examples would be a vacation
home, a vacant lot, rental property, property outside of
Illinois, and farm land.
Property tax assessed on your principal residence that
you do not own, even if you paid the tax. For example, if
you live with relatives who own the residence and you
paid the property tax but you do not own the property, you
may not claim a tax credit.
Interest penalties or fees you paid because your property
tax installments were paid late.
Any portion of the property tax due that you did not pay in
the tax year. For example, if you did not pay one or both
property tax installments on your 2007 taxes due in 2008,
you may not include the portion of the 2007 taxes that you
did not pay when fi guring your property tax credit on your
2008 Form IL-1040.
Accountant fees or lawyer fees paid in association with
your property tax.
Homeowner’s association dues or fees paid.
Property tax paid on an out-of-state home.
General Information
Contents
General Information
What is the Illinois Property Tax Credit? .................................................................................2
What property tax may I include when I fi gure a property tax credit? .....................................2
What may not be included when I fi gure a property tax credit? .........................................2 - 3
What if I bought a house? .......................................................................................................3
What if I built a house? ...........................................................................................................3
What if I sell my house? ..........................................................................................................3
May I include back property tax when I fi gure my property tax credit? ...................................3
May I include property tax if I am married and fi ling a separate return? .................................3
May I fi gure a property tax credit if I live in a mobile home? ...................................................3
May I fi gure a property tax credit if a portion of my residence is used for business? .............3
May I fi gure a property tax credit if I own farm property? .......................................................3
May I receive a refund if my property tax credit exceeds the tax I owe? ................................3
Offi ce Locations ........................................................................................................4
For Information or Forms .........................................................................................4
