Property Tax - Exemption Information (PIO-74)

Quick Facts

Purpose: Locks in the equalized assessed value (EAV) of a qualifying senior’s home, preventing future increases due to reassessment. Tax bills can still change because of tax rates, but the assessed value stays at the base year level.
Eligibility age: 65 or older during the tax year. If you turn 65 in December, you qualify for that entire tax year.
Income cap: Total household income (including Social Security, pensions, and income of all occupants) must be $65,000 or less.
Application form: PTAX-340, filed annually with your local Chief County Assessment Officer (CCAO) along with proof of age, income, and ownership.
Stackable benefits: Can be combined with the standard General Homestead Exemption and the Senior Homestead Exemption for additional savings.

Program Overview

Illinois relies heavily on property taxes to fund schools and local services. Seniors on fixed incomes often experience “tax shock” when reassessments spike property values. The Senior Assessment Freeze, enacted in 1994, creates a base-year EAV that stays constant as long as you continue to qualify. By freezing the assessed value, the program keeps your property tax bill predictable even when your neighborhood’s market values soar.

The exemption does not zero out taxes; it stabilizes the value on which taxes are calculated. For example, if your home’s EAV was $100,000 when you first qualified, that value remains the basis for future taxes. If the market drives the EAV to $150,000, the freeze shields $50,000 from taxation, often saving $1,000 or more per year depending on local tax rates.

Because the freeze is income-based and requires annual verification, paperwork discipline is essential. Counties mail renewal forms each spring, but you should not rely solely on the mailing—lost forms do not excuse late filing. Many counties, including Cook, DuPage, Lake, and Will, now offer online portals to submit PTAX-340, but original signatures may still be required for first-time applicants.

Eligibility Requirements

Age and Residency

You must be 65 years old or older during the assessment year. The program uses the assessment year, which precedes the tax bill year. For example, for 2024 taxes payable in 2025, you must have been 65 in 2024.
You must own and occupy the property as your principal residence. Ownership can be in your name, your spouse’s name, or held in a qualifying trust.
Temporary absences for medical care, assisted living, or seasonal stays do not disqualify you if you intend to return and the home remains your legal residence.

Income Test

Household income includes the combined income of you, your spouse, and all people living in the home. Count gross income from Social Security, SSI, pensions, wages, interest, dividends, IRA distributions, net rental income, and capital gains.
The annual limit is $65,000. If your household exceeds the limit, you lose the freeze for that year but may reapply later if income falls.
Use the income worksheet provided in PTAX-340 to document each source. Keep statements in case of audit.

Base Year Determination

The base year is the first year you qualify and apply. The assessed value from that year is locked in as long as you maintain eligibility.
If you miss a filing year, you may lose the base year and must reapply. Some counties allow reinstatement if you show good cause; contact your CCAO immediately if you realize you missed a deadline.

Application Process

Obtain PTAX-340: Download from the Department of Revenue or request from your CCAO. Some counties prefill the form with prior-year data.
Complete the ownership section: Provide property index number (PIN), address, and ownership details. Attach a copy of the deed or tax bill showing ownership.
Document age: Include a copy of your driver’s license, state ID, birth certificate, or passport. If your spouse is under 65, note their age but they do not need to qualify.
Calculate household income: Use the worksheet to list each income source. Attach SSA-1099, pension 1099-R, interest 1099-INT, dividends, and other statements. If you did not file federal taxes, sign the non-filer affidavit.
Sign and submit: File with the CCAO by the county-specific deadline (often mid-July). Many counties accept electronic submissions, but some require notarized signatures. Keep copies for your records.
Monitor approval: Counties send confirmation or issue tax bill adjustments in the fall. Check your second-installment bill to verify the freeze credit line.

Documentation Checklist

Government-issued ID showing age.
Proof of ownership (tax bill, deed, trust documents).
Proof of residency (utility bills, voter registration).
Federal tax return (if filed) and W-2/1099 forms.
Social Security 1099 and SSI letters.
Pension or annuity statements.
Documentation of rental income and expenses if applicable.
Notarized affidavit for non-filers.

Timeline and Renewal

Initial application: File during the assessment year in which you turn 65. If you turn 65 in December, you can still qualify for the entire year.
Annual renewal: Submit PTAX-340 every year. Counties usually mail renewals in late January or February; deadlines typically fall in July but can vary.
Late filings: Some counties allow late submissions with penalty or require a Certificate of Error. Do not rely on this; always file on time.
Moving or changing ownership: If you sell your home, the freeze ends. If you downsize and buy a new home, you must reapply and establish a new base year.

Coordinating with Other Property Tax Benefits

General Homestead Exemption: Automatically applied to most owner-occupied homes, reducing EAV by $6,000 in Cook County (amounts vary elsewhere). This works alongside the freeze.
Senior Homestead Exemption: Reduces EAV by an additional $5,000 (Cook County) or local amount. Claim via PTAX-324 before or alongside the freeze.
Senior Citizen Real Estate Tax Deferral Program: Allows eligible seniors to defer property taxes at 3% simple interest. Consider deferral if taxes remain unaffordable even after the freeze.
Veterans’ exemptions: Disabled veterans can combine the freeze with the Standard or Special Veterans Homestead Exemptions for deeper reductions.

Strategies for Maximizing Savings

Appeal your assessment before freezing: If your assessed value seems inflated, file an assessment appeal in the base year. A lower base year EAV maximizes long-term savings.
Track household income carefully: If adult children move in, their income counts. Consider cost-sharing arrangements that do not trigger additional income, such as paying utilities instead of rent.
Leverage tax preparation assistance: AARP Tax-Aide volunteers understand PTAX-340 and can help ensure accurate income reporting.
Coordinate with financial planners: Manage IRA distributions and capital gains to stay below the income threshold. Spreading withdrawals over multiple years can preserve eligibility.
Review tax bills annually: Confirm that the freeze appears. If your tax bill spikes, contact the assessor to check whether the base year value changed.

Common Pitfalls

Missing the deadline: Counties rarely grant extensions. Set calendar reminders and submit early.
Underreporting income: Audits can revoke the exemption and impose back taxes with interest. Include all household income, even if non-taxable federally.
Trust ownership confusion: If your home is in a trust, ensure the trust allows you to occupy the property as a primary residence. Provide the trust summary pages.
Losing the base year by moving temporarily: Extended stays elsewhere can raise residency questions. Keep documentation proving the Illinois home remains your main residence.
Assuming automatic renewal: Renewal forms must be filed annually even if nothing has changed.

Frequently Asked Questions

Does the freeze cap my tax bill? No. Tax rates can change, so your bill may rise slightly. However, increases will be much smaller because your assessed value stays frozen.

Can co-owners under 65 be on the deed? Yes, as long as the qualifying senior resides in the home. The exemption applies to the entire property, not just the senior’s share.

What if my income exceeds $65,000 for one year? You will lose the exemption for that tax year but can reapply the following year if income drops. Your base year may reset; check with your CCAO.

Can I claim the freeze on a second home? No. Only your principal residence qualifies.

How does the freeze interact with reassessment cycles? During triennial reassessments (e.g., Cook County), your property value may increase dramatically, but the freeze keeps your taxable EAV anchored to the base year. File appeals if the base year seems incorrect.

Additional Resources

Illinois Department of Revenue PTAX-340 Instructions
Contact your county assessor or CCAO for local filing deadlines and online submission options.
Cook County Assessor Senior Services: (312) 443-7550 for appointment scheduling and form assistance.
AARP Illinois offers tax clinics and property tax workshops—visit their website for schedules.

By freezing your property’s assessed value, the Illinois Senior Citizens Assessment Freeze Homestead Exemption provides long-term protection against rapid tax increases. Diligent record-keeping, prompt annual filings, and coordination with other exemptions can translate into thousands of dollars in lifetime savings, helping you remain in your home even as neighborhood property values climb.