SPRINGFIELD — State Senator Lakesia Collins spearheaded a property tax relief package that was signed into law Friday, increasing property tax exemption thresholds for senior citizens in Illinois.

“Seniors have a lot on their plate to deal with from health care to home care, and property taxes should not be on that list,” said Collins (D-Chicago). “Expanding the number of seniors who qualify for relief ensures seniors in our neighborhoods can stay in our neighborhoods.”

The new law, Senate Bill 642, will deliver critical updates to help seniors on fixed incomes and help families facing economic challenges manage rising property tax costs. Under the measure, the maximum income limit for the Low-Income Senior Citizens Assessment Freeze Homestead Exemption will increase substantially over the next several years, beginning at $75,000 for taxable year 2026, increasing to $77,000 for taxable year 2027 and settling at $79,000 for taxable year 2028 and beyond.

To address gentrification issues, Collins’ law adds an occupancy requirement, stating seniors must have owned and lived in their home for at least three years. This expanded threshold will allow thousands of additional seniors across Illinois to qualify for the property tax freeze – helping them stay in their homes and maintain financial security as the cost of living continues to rise.

The law also creates a new property tax repayment plan, giving counties the authority to establish structured payment options for homeowners with unpaid taxes. For the 2025 tax year, unpaid taxes will begin accruing interest at a reduced rate, providing taxpayers more time and flexibility to meet their obligations without facing harsh penalties. Counties will be able to offer payment plans during the redemption period and waive interest penalties for participants who comply with their plan’s terms – making it easier for older adults to recover from temporary financial setbacks.

“By giving more folks the opportunity to receive property tax breaks, we are putting money back in older adults’ pockets,” said Collins. “Especially during this time of year, it’s important for seniors to know Illinois has their back and is looking out for their future too.”

Senate Bill 642 was signed into law Friday and takes effect immediately.

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