Cook County Home Improvement Exemption: What It Means and How It Works
If you’re planning to remodel, expand, or repair your home after major damage, Cook County’s Home Improvement Exemption can help you avoid an immediate jump in your property taxes. It shields you from being taxed on the added value from your improvement for up to four years.
This article is based on information from the Cook County Assessor’s Office as of 2025.
What the Home Improvement Exemption Does
The Home Improvement Exemption allows homeowners to add improvements to their property—such as increasing the building’s square footage or repairing after structural flood damage—without being taxed on up to $75,000 of the added fair market value for up to four years.
This means you can improve your home while keeping your tax bill steady during the exemption period.
Example
If a home with a current market value of $100,000 expands its square footage such that the Assessor’s estimate of market value rises to $175,000, the added $75,000 in value is exempted. The home would be taxed as if it were still worth $100,000. If the improvement added $80,000 in value, the first $75,000 would be exempted, and the home would be assessed as if it were worth $105,000.
Eligibility
To qualify, your home must:
- Be occupied by the owner as their primary residence
- Be classified as a Class 2 residential property (the standard Cook County classification for single-family homes, condos, and small apartment buildings)
How It Works
No application is required. When the Cook County Assessor’s Office receives building permits for home improvements, their staff conducts a field check of the property.
If your home qualifies, the exemption is automatically applied, and the Assessor’s Office sends a notice to the property owner confirming it.
The exemption remains in place for four years following completion of the improvement. After that, the added value becomes part of your taxable assessed value.
What’s Not Covered
The Home Improvement Exemption does not apply to normal repairs, maintenance, or routine upgrades that do not increase your property’s overall value. The following are examples of work that does not qualify:
- Repair or replace roofing materials, sidewalks, driveways, or fencing
- Add or replace gutters, downspouts, or insulation
- Install storm windows or doors
- Place siding over an existing structure
- Add or improve trees, lawns, or landscaping
- Paint, decorate, or plaster
- Replace furnace, cabinets, flooring, or fixtures
- Upgrade water heater, electrical, or plumbing systems
- Install outdoor lighting, alarm systems, or garage door openers
- Add above-ground pools or playground equipment
How to Confirm Eligibility
While no application is required, homeowners can contact the Cook County Assessor’s Office at 312-443-7550 to learn whether their property qualifies or to confirm that the exemption was applied after a building permit review.
Related Exemptions
If you’re a senior homeowner, you may also qualify for:
Frequently Asked Questions
What is the Home Improvement Exemption in Cook County?
It allows homeowners to make qualifying improvements without being taxed on up to $75,000 of the added value for up to four years. The exemption helps reduce the impact of higher property assessments due to improvements.
Do I need to apply for this exemption?
No. There’s no application or due date. The Assessor’s Office automatically reviews building permits, performs a field check, and applies the exemption if the home qualifies. You’ll receive a notice once it’s applied.
How long does the exemption last?
The exemption lasts for four years following the completion of the improvement. After that, the added value is included in your property’s assessment.
What kinds of projects qualify?
Qualifying projects are those that add value or livable space, such as additions, expansions, or structural repairs (for example, flood damage restoration).
What kinds of projects don’t qualify?
Routine maintenance or cosmetic updates do not qualify. Examples include re-roofing, painting, landscaping, replacing kitchen cabinets, or adding outdoor lighting.
How much can I save?
Up to $75,000 in fair market value (about $25,000 in assessed value) of the improvement can be exempted, meaning you won’t pay property tax on that portion for four years.
Who can I contact for more information?
You can call the Cook County Assessor’s Office at 312-443-7550 for assistance or to confirm if the exemption has been applied to your property.
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