How much is the homestead exemption in McHenry County?

$8,000 off equalized assessed value for the General Homestead Exemption, the amount for counties contiguous to Cook. Elsewhere in Illinois it is $6,000; Cook County is $10,000.

What is the Senior Freeze income limit?

$65,000 for tax years through 2025, rising to $75,000 for tax year 2026, $77,000 for 2027, and $79,000 for 2028 and after.

Why is my tax estimate different from the seller's bill?

The seller's bill reflects their exemptions and possibly an older assessment. After a sale, the assessment can reset and senior exemptions drop off. We estimate from current assessed value and the local rate.

Do I pay property taxes at closing?

You'll typically get a credit from the seller for taxes they owe for the time they owned the home (Illinois pays in arrears), and you'll fund an initial escrow deposit for the months ahead.

Local guidesIllinois

McHenry County property taxes: the homestead exemptions you can claim, and how to budget the bill into your mortgage

Property taxes are the line item that surprises McHenry County buyers, and the one most likely to be wrong on a lender's estimate. The county's median effective rate is about 2.42% of value, roughly two and a half times the national average. The good news is that Illinois gives homeowners several exemptions, and the county makes them easy to claim. Here is the full picture.

Home State Bank mortgage teamCrystal Lake, IL · Appleton, WI · NMLS 478452Updated September 9, 20268-minute read

What the bill actually looks like

On a $400,000 home in Crystal Lake, a 2.4% effective rate means roughly $9,600 a year, or $800 a month added to your mortgage payment. Rates vary by municipality because each town, school district, park district, and library levies separately; recent data puts the range from about 2.3% in Hebron to just over 3% in Port Barrington. Crystal Lake, Cary, and Lake in the Hills sit in the middle.

Two practical notes. Illinois pays taxes in arrears, so the bill you get in 2026 is for 2025. And a home that was under-assessed or carried a senior exemption can see its bill jump after a sale, which is why we estimate off the assessed value and the current rate, not the seller's last bill.

The exemptions, with 2026 amounts

An exemption reduces the equalized assessed value your rate is applied to. McHenry County is one of the counties contiguous to Cook, which means it gets the larger exemption amounts written into state law in 2023.

Illinois homestead exemptions, McHenry County
Exemption	Amount	Who qualifies
General Homestead	$8,000 off EAV	Owner-occupant of a primary residence
Senior Citizens Homestead	$8,000 off EAV	Age 65+, owner-occupant
Senior Citizens Assessment Freeze	Freezes EAV	Age 65+, household income $65,000 (2025) rising to $75,000 for tax year 2026
Homestead Improvement	Up to $25,000 of added value for 4 years	Owners who add to or improve the home
Veterans with Disabilities	Partial to full	Based on service-connected disability rating

How to apply

Exemptions are handled by the McHenry County Supervisor of Assessments at 667 Ware Road, Suite 106, Woodstock, IL 60098, 815-334-4290, or by your township assessor. The General Homestead usually carries over once granted; the Senior Freeze is an annual filing on form PTAX-340 with a July 1 deadline and requires photo ID and federal income documentation. Forms are on the county's assessments page. After you close, put the application on your list next to changing the utilities.

Budgeting it into the mortgage

Your lender will escrow taxes, collecting one-twelfth of the estimated annual bill with each payment. The estimate matters: an underestimate means an escrow shortage and a payment jump in year two. Our payment calculator defaults to a 2.4% McHenry County rate for exactly this reason, and a loan officer can tighten it by town. Also budget for the initial escrow deposit at closing, which is typically several months of taxes.

For buyers weighing Illinois against Wisconsin, the tax line is the single biggest difference. The Fox Valley's effective rate is closer to 1.4%, and Wisconsin adds a lottery credit on primary residences. Our Wisconsin guide covers it.

Appealing your assessment

If your assessment looks high relative to recent sales of similar homes, you can appeal to the McHenry County Board of Review during its annual window after assessments are published, usually late summer. A successful appeal lowers the base every exemption is applied to. Your Realtor or a local attorney can pull the comparable sales; the filing itself is straightforward.

Questions people ask

How much is the homestead exemption in McHenry County?: $8,000 off equalized assessed value for the General Homestead Exemption, the amount for counties contiguous to Cook. Elsewhere in Illinois it is $6,000; Cook County is $10,000.
What is the Senior Freeze income limit?: $65,000 for tax years through 2025, rising to $75,000 for tax year 2026, $77,000 for 2027, and $79,000 for 2028 and after.
Why is my tax estimate different from the seller's bill?: The seller's bill reflects their exemptions and possibly an older assessment. After a sale, the assessment can reset and senior exemptions drop off. We estimate from current assessed value and the local rate.
Do I pay property taxes at closing?: You'll typically get a credit from the seller for taxes they owe for the time they owned the home (Illinois pays in arrears), and you'll fund an initial escrow deposit for the months ahead.

Sources

This article is general information, not financial, tax, or legal advice, and not a commitment to lend. Program terms, limits, and rates change; confirm current figures with a loan officer. Home State Bank, N.A. NMLS 478452. Member FDIC · Equal Housing Lender.