Disability Property Tax Exemption in Illinois: Proof and Amount

Illinois gives homeowners with a qualifying disability a $2,000 reduction in their property’s equalized assessed value each year, with no income limit attached. The benefit comes from the Homestead Exemption for Persons with Disabilities under 35 ILCS 200/15-168, and it is separate from the exemptions available to seniors or to veterans with service-connected disabilities. The disability property tax exemption in Illinois is available to anyone who owns and lives in the home, is liable for the taxes, and can document a disability that meets the statute’s definition.¹

Who Qualifies

Four conditions have to be met at the same time. You must occupy the property as your primary residence, be liable for paying the property taxes, hold an ownership interest (legal or equitable), and have a disability that fits the statutory definition.

Illinois uses the Social Security standard: a medically determinable physical or mental impairment that prevents substantial gainful activity and has lasted, or is expected to last, at least 12 months or to result in death. A short-term injury or a condition that doesn’t stop you from working generally won’t qualify, even if it is serious.¹

There is no age requirement and no income cap. A 40-year-old homeowner on SSDI qualifies on the same footing as a 75-year-old retiree with a qualifying disability.

Proof of Disability the Assessor Will Accept

You cannot self-certify. The application requires one of a short list of official documents:

A Class 2 or Class 2A Illinois Person with a Disability Identification Card issued by the Secretary of State’s Office. Class 1 and Class 1A cards do not qualify.
A Social Security Administration disability award letter, a verification letter, or an annual cost-of-living adjustment letter showing you receive SSDI.
If you’re under full retirement age and receiving SSI disability benefits, a letter from SSA indicating those SSI payments.²

The class distinction on the Illinois disability ID trips up a lot of applicants. If the card you have is Class 1 or 1A, it won’t work for this exemption, and you’ll need to either upgrade the classification through the Secretary of State or submit SSA documentation instead.

What the Exemption Is Worth

The exemption reduces your home’s equalized assessed value by $2,000. It does not cut $2,000 off the tax bill. To estimate the actual savings, multiply the reduction by your local tax rate. At a 7% rate, that works out to roughly $140 a year.² Higher local tax rates mean higher savings; lower rates mean less. The dollar amount is modest compared with the veterans exemption or the senior freeze, but it repeats every year the exemption stays in place.

How to Apply

Applications go through your county assessor’s office using Form PTAX-343 or the county’s equivalent. First-time applicants need:

Proof of disability from the accepted list above
Proof that you occupy the property as your primary residence
Proof of ownership

Deadlines are set locally. In Cook County, the filing period for tax year 2025 exemptions opened on March 9, 2026, and the 2024 cycle closed on April 29.³ Other counties set their own windows, so contact your assessor early in the year rather than assuming Cook County’s dates apply. A missed deadline means a lost year with no retroactive fix, so keep copies of everything you file and confirm receipt by phone.

Renewal and Auto-Renewal

In Cook County, the Persons with Disabilities Exemption now auto-renews after your initial application, following recent state legislation.⁴ You should still check your annual assessment notice to make sure the exemption is listed, because processing errors happen and are much easier to correct before bills go out. Outside Cook County, renewal practices vary. Ask your county assessor whether you need to reapply each year.

If You Move to a Nursing Home

The exemption doesn’t automatically disappear when you move to a care facility. Under 35 ILCS 200/15-168, if you move to a facility licensed under the Nursing Home Care Act or a comparable state-regulated program, the exemption continues as long as your spouse still lives in the home, or the property remains unoccupied but still in your name.¹ Renting the property out or transferring ownership would end that protection.

This Is Not the Veterans Exemption

Veterans with a service-connected disability use a different statute, 35 ILCS 200/15-169, and get a much larger benefit tied to their VA rating: a $2,500 EAV reduction at 30% to under 50%, $5,000 at 50% to under 70%, and full exemption on the first $250,000 of EAV at 70% or higher. A veteran who qualifies for that program applies through it rather than the general disability exemption. A separate provision under 35 ILCS 200/15-165 allows up to a $100,000 reduction in assessed value for specially adapted housing built or purchased with federal VA funds by veterans with certain permanent and total service-connected disabilities.⁵

Stacking With Other Exemptions

The Persons with Disabilities Exemption can be combined with other property tax breaks you qualify for. A homeowner who is 65 or older and has a qualifying disability may receive the disability exemption and the Senior Citizens Homestead Exemption at the same time. Lower-income seniors with a disability may also qualify for the Low-Income Senior Citizens Assessment Freeze on top of both. Each exemption is evaluated separately against its own eligibility rules, and each reduction stacks against your EAV before the tax rate is applied.

If Your Application Is Denied

A denial isn’t the end of the road. The first appeal goes to your county’s Board of Review on Form PTAX-230, where you present evidence supporting eligibility. Documentation the assessor found insufficient, including additional disability records or ownership paperwork, can be submitted at this stage. Filing deadlines vary by county, so contact the Board of Review directly.⁶

If the Board of Review upholds the denial, the next step is a petition to the Illinois Property Tax Appeal Board, a state-level body that can overturn local decisions. Board of Review review is a prerequisite; you cannot skip straight to PTAB.⁷ You do not need a lawyer at either stage, though one can help when the dispute involves unusual disability documentation or a complicated ownership structure such as a trust.

1
Illinois General Assembly. Illinois Code 35 ILCS 200/15-168
2
Coles County, Illinois Government. PTAX-343 Application for the Homestead Exemption for Persons with Disabilities
3
Cook County Assessor’s Office. Deadline for Exemptions is April 29
4
Cook County Assessor’s Office. Property Tax Exemptions
5
Illinois Department of Revenue. Property Tax Relief – Homestead Exemptions, PTELL, and Senior Citizens Real Estate Tax Deferral Program
6
Illinois Department of Revenue. Assessment Appeals – Property Tax
7
Property Tax Appeal Board. Practice and Procedures