How much are taxes on a New Construction home?
Because of the timing of the tax cycle, it is difficult to estimate a future tax bill for a home that is not yet constructed. A ballpark estimate for a full 12 month tax bill on a newly constructed home is approximately 2.5% – 2.7% of your sale price. Assessments, exemptions, and tax rates change yearly. Therefore, your tax bill will change yearly. Historically, taxes increase annually in our area. Please budget accordingly and contact our office with any questions or concerns. You can use the chart below as a guide to your tax estimate.
| Sale Price x | Effective Rate | = Tax Estimate |
|---|---|---|
| $300,000 | 2.5% | $7,500 |
| $350,000 | 2.5% | $8,750 |
| $400,000 | 2.5% | $10,000 |
| $450,000 | 2.5% | $11,250 |
| $500,000 | 2.5% | $12,500 |
| $550,000 | 2.5% | $13,750 |
| $600,000 | 2.5% | $15,000 |
| $650,000 | 2.5% | $16,250 |
| $700,000 | 2.5% | $17,500 |
| $750,000 | 2.5% | $18,750 |
| $800,000 | 2.5% | $20,000 |
What if I am not purchasing from a builder?
If you already own your lot and are having a custom home built, your assessment will be determined by market value and the assessments of comparable properties. Please contact our office for more information.
When do my taxes begin?
The first bill you receive may be for more* or less than 12 months. Your building assessment is pro-rated based on when your Certificate of Occupancy is issued by the municipality’s building department or when the construction of the home is completed. Land is assessed as of January 1st of the assessment year. For example, a home was issued a Certificate of Occupancy on June 1, 2024. It will likely be assessed for 7 months of the building and 12 months of the land for 2024 (payable in 2025). Note: The land may be at a reduced developer’s rate, meaning it might increase the following year.
*What is an instant assessment?
An instant assessment is an assessment from the prior year that was not previously billed. Instant assessments are common in new construction neighborhoods. For example, a home was issued a Certificate of Occupancy on November 1, 2023. It will likely have an instant assessment in 2024 (payable in 2025). The 2024 assessment will include all 12 months of 2024 for the land and building, plus 2 months (November and December) of the building from 2023. The land would have already been assessed for 2023 (paid in 2024). If you have an instant assessment it will be listed on your assessment notice and your tax bill. Please contact our office with any further questions.
Issuance of PIN (Property Index Number)
It is also common in new construction neighborhoods for homes to be completed before PINs are issued by Will County Mapping. Duplexes and Townhomes typically fall into this category. The homes that are completed in 2023 will likely have a PIN issued for 2024 (payable in 2025). For example, a home was issued a Certificate of Occupancy on July 1, 2023. It will likely have an instant assessment* in 2024 (payable in 2025). The 2024 assessment will include all 12 months of 2024 for the land and building, plus 6 months (July through December) of the building from 2023. Please contact our office with any further questions.
Property Records
We regularly look to the homeowner to provide property details. They are necessary to create accurate records and fair assessments. If you have not already submitted your property details to our office, please complete the Building Details Form. Your assistance and cooperation is appreciated.