Paul P. rents a 2,852 square foot Plainfield home that is currently assessed at $292,620.
“My wife and I went to build a house in 2014 and we sold our other house while we were waiting for the new house to be built,” Paul said. “By the time the house was built, the financing fell through. We had to find another house quickly and we ended up renting the house we are in. The rent was cheaper than what we would pay in a mortgage every month.”
Paul has been renting the home since 2014. His landlord has paid $25,049 in taxes while Paul has lived in the home.
“Every year we look into buying a house, but property values aren’t going up,” Paul said. “Our rent isn’t nearly as much as taxes are or what it would cost to buy. We want to leave the state now. We’ve saved over $55,000 by not owning. Why would we want to invest in the state of Illinois?”
If Paul were to purchase the house he is renting, he would be paying $8,310 on the home, about 2.8 percent of the Will County Assessor claimed value of $292,620.
“There are a lot of us out there that are renting that have no intentions of buying a home in Illinois,” Paul said. “I don’t know why you would buy a house versus renting? You’re not subjected to the massive property taxes.”
Indiana has a hard 1 percent cap on property taxes. This means local governments are not allowed under state law to charge homeowner’s more than 1 percent of their home’s assessed value per year. The average property tax rate for the state of Indiana is 0.89 percent. Meanwhile, the average property tax rate in Illinois is 2.3 percent.
If Paul lived in Indiana the most he could be charged in property taxes if he were to purchase the home he is renting would be $2,926 per year or $5,384 less than what his landlord pays in Illinois.
To share your story with us, please send an email including your full name, address, phone number and email address to firstname.lastname@example.org.