Property tax foreclosure in Illinois

The property tax process in Illinois, step by step

1. Taxes become delinquent and interest starts

   June 1 and September 1, or the day after the due dates on your bill

   Each installment that is not paid by its due date is delinquent and draws interest of 1.5% per month in most counties. In Cook County, the first installment is delinquent after March 1, and interest is 0.75% per month for tax year 2023 and later. Paying even part of what you owe early keeps the total from growing.

   35 ILCS 200/21-15, 21-25

2. The annual tax sale and the Take Notice

   At the county's annual tax sale; notice within 4 months and 15 days after it

   At the tax sale, bidders pay your delinquent taxes and compete by offering the lowest penalty rate, which cannot be more than 9% for each 6-month period. The winning bidder gets a certificate of purchase, but you still own the home. Within 4 months and 15 days, the buyer must deliver a notice through the county clerk telling you the property was sold for taxes.

   35 ILCS 200/21-205, 21-215, 22-5

3. Redeem at the county clerk before the deadline

   2.5 years after the sale for certificates from January 1, 2024; 3 years for certificates issued on or after July 10, 2026

   You redeem by paying the county clerk, not the buyer: the certificate amount plus a penalty that grows every 6 months, plus any later taxes the buyer paid. Vacant land, commercial property and buildings with 7 or more units get only 1 year. The buyer may extend the deadline, but not past 3 years from the sale, and must notify you 3 to 6 months before your time runs out.

   35 ILCS 200/21-350, 21-355, 21-385, 22-10

4. Court hearing on the tax deed

   After the redemption period ends

   The buyer must file a petition in circuit court and prove that every notice was given, and the court insists on strict compliance. You can respond or go to the hearing. If you have not redeemed and the rules were followed, the court enters an order, and it can later order the new owner put in possession of the home, which can lead to eviction.

   35 ILCS 200/22-10, 22-40

5. Judicial tax deed auction and your surplus (new sales)

   Certificates issued on or after July 10, 2026; claim within 3 years of the treasurer's notice

   After Tyler v. Hennepin County (2023), Illinois changed the law so that for new tax sales the court orders a public auction within 120 days instead of giving the buyer the home outright. Money above the tax deed judgment amount goes to the county treasurer, who must mail you a notice within 60 days, and you can claim it from the treasurer or the circuit court within 3 years, with the interest it earned. Unclaimed money then goes to the State Treasurer's unclaimed property program.

   35 ILCS 200/22-40, 22-42 (P.A. 104-553)

6. Surplus equity fund for older sales

   Within 2 years after the tax deed is recorded; by July 10, 2028 for deeds recorded July 10, 2024 to July 10, 2026

   If you lost your home through a tax deed on an older certificate, you can petition the court that ordered the deed, naming the county treasurer as trustee of the surplus equity fund. The award is limited to the home's value when the deed issued, minus mortgages, liens and the taxes the buyer paid. If the fund runs short, the county must pay the rest within 12 months of the court order.

   35 ILCS 200/21-296, 21-302

7. Senior tax deferral

   Apply each year through your county treasurer

   If you are 65 or older and meet the income rules, the Senior Citizens Real Estate Tax Deferral Program lets the state pay your property taxes on your home as a loan with interest, up to 80% of your equity. The money is repaid when the home is sold or you die. Ask your county treasurer for Forms IL-1017 and IL-1018.

   320 ILCS 30

Common questions in Illinois