Barrington real estate taxes can be a shocker for buyers relocating from other states, and for international buyers. Illinois real estate taxes are one of the highest in the country. So what can you expect.
Barrington Real Estate Taxes
For an average home across the country Illinois tax rate would be 2.29%. With an average price currently of $176,000 the yearly bill is $3959. However the median house price in Barrington IL hovers around $600,000. Now your yearly taxes are going to be $13,740. Of course these numbers are not precise because the Barrington villages are in four different counties and the tax varies between counties, but it does give you an idea.
Luxury home prices in Barrington go into the millions and the taxes go with them. For example a $2 million home might bring you a tax bill of $30,000 per annum. That same home on 5 acres might increase your taxes to $45,000. Each home has the most recent years taxes available to home buyers on the MLS listing data sheet.
Relocation Buyers React to Barrington Real Estate Taxes
I have sold many homes to relocation buyers moving to Barrington and the reactions are usually somewhat of a shocker. It does depend on where they are moving from and what they pay now. There’s nothing a buyer or I can do. They are what they are. So here’s my tips for considering each home before you proceed to buy.
- Make sure you can afford the mortgage payments and the monthly real estate taxes without putting your finances at stretching point.
- Consider the annual real estate tax bill separately from the purchase price. Are you horrified? Find a cheaper property!
- Understand that while many have appealed their bills based on property values, one day or another it’s going to go up!
- Appeals may reduce your property value but that does not stop the county increasing the rate!
- Barrington schools are very well funded from our property taxes, it’s why many of you want to come and live here. Tax payments support local colleges too.
If you are moving to Barrington understand that age of property, size of property, size of lot, price of property all factor into your real estate taxes. The 2.29% calculation is a very broad one, the homes you are interested in may be more or less. If you improve your property, your taxes will increase. Real estate taxes are reviewed every 3 years and sooner if you make additions as your improvement or building permits will be reviewed.
When To Pay These Tax Bills
Our real estate taxes in Barrington are paid according to the county. Cook county is paid March and September, Lake county June and September. There are some quirky aspects to buying and selling real estate in Barrington and the real estate taxes is one of them. We pay these taxes a year in arrear. When you work with us to buy or sell in Barrington, we’ll explain how this will affect your settlement statement and what the tax items mean.
For International Buyers
If like me you come to live and work in America from another country, real estate taxes may be completely new to you. We certainly did not have them in England. We had a monthly rates bill but it was small by comparison. What do the real estate taxes in Barrington and other Illinois cities get used for?
Here are some of the uses your annual payment goes towards.
- School districts. The state does not run our schools in Barrington. A big chunk of Barrington real estate taxes go to the school districts. More money = better teachers = better results = desire to attend.
- County costs and county workers pension fund.
- Village costs. (Each Barrington has a village) (Some Barrington areas only have the county.)
- Road repairs.
- Local community colleges.
- Forest preserves.
- Forest preserve employees and pensions.
- Township employees and pensions.
To give you an idea, my recent tax bill had 63% of the payment going to the Barrington School District 220.
A Word About Exemptions
The most common are homestead. As long as the property is your primary residence and a seniors exemption for over 65 year old owner occupants. These reduce your bill a little every year but not that much. (Together about $750 a year at time of writing.) Veterans may get a tax exemption too. There are other limited tax exemptions which vary by county.
Don’t pay your taxes – you could lose your house!
Visit our website for more on Barrington real estate and the surrounding villages.