LyLena Estabine, Senior Policy Analyst
Budget + Tax. April 13, 2026
The governor pins the issue on local governments, but state law and decisions contribute to the problem.
J.B. Pritzker isn’t as innocent as he wants us to think when it comes to Illinois’ property tax woes.
“I want to remind you that property taxes are not determined by the state of Illinois, but rather by local governments…including school boards, park boards, library boards, municipalities, etc.,” he said last month.
He put special emphasis on school boards.
Pritzker is right that local taxing bodies set levies, but suggesting those decisions have nothing to do with him is naive at best and dishonest at worst. State mandates, pension obligations and funding choices he oversees play a significant role.
Under the governor, property taxes have risen nearly 27% — from $31.8 billion in 2018 just before he took office to $40.37 billion in 2024.
State decisions shape some of the largest pressures behind those tax bills.
Illinois public schools are primarily funded by property taxes. But school districts are forced to rely so heavily on those taxes in part because the state diverts a growing share of its education spending to pensions instead of classrooms.
From 1996 to 2016, state education spending increased by $5.4 billion. But two-thirds of that growth, or $3.6 billion, went to pensions rather than students. During that time, pension costs grew from just over 8% of state education spending to more than one-third.
That trend has continued.
Since 2016, general fund payments to the Teachers’ Retirement System of the State of Illinois have grown 68%, outpacing the 55% increase in preK-12 education spending.
Pensions now consume nearly 40% of Illinois’ education budget. With more state money tied up in retirement debt, school districts are left to fill the gap at least in part with property taxes.
Some of those pension obligations were in place before Pritzker took office, but last year he signed a sweetener for Chicago’s fire and police pensions that will add an estimated $11.1 billion in liabilities by 2055. Roughly 80% of Chicago property taxes go to the city’s pensions.
In 2011 the state enacted the largest income tax hike in state history and kept 100% of the increase. At least some of that extra money could have offset rising property taxes.
Lake County Appeal article comments:
While Illinois property taxes have drastically increased since 2018 (27% per the article), it is noteworthy that inflation in the U.S. has risen by approximately 31% during that period. As such, the increase in property taxes is actually a decrease in inflation-adjusted dollars, (Although Illinois property taxes are still unreasonably excessive!) Moreover, New Jersey taxpayers pay the most in property taxes, not Illinois taxpayers. Illinois taxpayers pay the second most nationwide.