Illinois benefits
Illinois and Cook County help for veteran home buyers
Short answer
Veterans buying in Chicago can add local help to a VA loan. The Cook County Assessor reduces taxable value by $2,500 for a 30% to 49% service-connected disability and by $5,000 for 50% to 69%, and takes up to $250,000 off for a rating of 70% or higher, which erases the tax bill on most Chicago homes. IHDA's down payment programs work with VA loans, and veterans are treated as first-time buyers for IHDA's Access Home program.
Cook County property tax exemptions for veterans
| Exemption | Who qualifies | Amount |
|---|---|---|
| Veterans with Disabilities | 30% to 49% service-connected disability | $2,500 off EAV |
| Veterans with Disabilities | 50% to 69% service-connected disability | $5,000 off EAV |
| Veterans with Disabilities | 70% or higher | Up to $250,000 off EAV |
| Returning Veterans | Returned from active duty in an armed conflict | $5,000 off EAV, for the year you return and the next year |
| Veterans with Disabilities, specially adapted housing | Home bought or adapted with a VA specially adapted housing grant | Up to $100,000 off EAV |
| Homeowner (all owners) | Own and live in the home | $10,000 off EAV |
EAV is equalized assessed value, the figure your tax rate is applied to. The Veterans with Disabilities and Returning Veterans exemptions cannot be combined with each other. An unmarried surviving spouse of a veteran who received the disability exemption can keep receiving it. Veterans with Disabilities must reapply every year with the VA’s disability certification letter and a certified DD214.
Apply: online at the Cook County Assessor’s exemptions page, in person at 118 N. Clark St., 3rd floor, or by phone at 312-443-7550.
Disabled veterans can combine these exemptions with a waived VA funding fee and VA housing grants. All disabled veteran benefits.
What the exemption is worth: an example
Equalized assessed value (EAV) is the number your tax rate is multiplied by. If a home has an EAV of $90,000 after the $10,000 Cook County homeowner exemption, and the local tax rate is 7%, the bill is about $6,300 a year. A 50% to 69% rating takes another $5,000 off EAV, saving about $350 a year. A 70% or higher rating takes up to $250,000 off, so the taxable EAV on this home drops to zero and the bill is erased, apart from some drainage or special service area charges.
Example figures. Your tax rate depends on where you live; your bill lists it.
How to apply in Cook County
- Close on the home and move in. Exemptions apply to your primary residence.
- Get a certified copy of your DD214 and your current VA disability rating letter.
- File online with the Cook County Assessor during the exemption window, or at 118 N. Clark St.
- For the disability exemption, renew every year with a current VA letter. The Assessor mails renewal reminders.
The adapted housing exemption (up to $100,000) cannot be combined with the veterans with disabilities exemption; you get the larger benefit. Buying outside Cook? See VA loans in the Chicago suburbs.
IHDA assistance you can use with a VA loan
| Program | Help | Terms |
|---|---|---|
| Access Home | Up to $15,000 | Deferred, 0% interest; first-time buyers, with veterans exempt from that rule |
| Access Forgivable | 4% of price, up to $6,000 | Forgiven monthly over 10 years |
| Access Deferred | 5% of price, up to $7,500 | 0% interest, repaid at sale or refinance |
| Access Repayable | 10% of price, up to $10,000 | Repaid monthly over 10 years |
All four require a 640 credit score, income and price limits, and an IHDA-participating lender. With zero down already, VA buyers usually use IHDA funds for closing costs.
Common questions
Do disabled veterans pay property taxes in Cook County?
A 70% or higher service-connected rating takes up to $250,000 off the home's equalized assessed value, which erases the tax bill on most homes. Ratings of 30% to 49% get $2,500 off and 50% to 69% get $5,000 off.
Can I use IHDA assistance with a VA loan?
Yes. IHDA's Access Home, Forgivable, Deferred and Repayable programs all list VA loans as eligible.
Do veterans count as first-time buyers for IHDA?
For Access Home, qualified veterans are exempt from the first-time buyer requirement.
Sources
- Veterans exemptions flyer, Cook County Assessor's Office
- Property tax exemptions, Cook County Assessor's Office
- Getting an IHDA loan, Illinois Housing Development Authority
- IHDA income and purchase price limits
- There's a homestead exemption for that, Illinois CPA Society (Spring 2026)
- Disability housing grants for veterans, VA.gov
What will your VA funding fee be?
Enter a price and down payment to see the 2026 fee, or check whether you are exempt.
An independent guide. Not affiliated with or endorsed by the U.S. Department of Veterans Affairs, and not a lender. General information, not legal, tax or financial advice.