SPRINGFIELD — State Senator Laura Ellman backed a property tax relief package that increases property tax exemption thresholds for senior citizens in Illinois.

“Our seniors deserve peace of mind, not the fear of being priced out of their own homes,” said Ellman (D-Naperville). “This measure extends relief to older adults so they can stay rooted in their communities, surrounded by the people, memories and support systems that matter most.”

Senate Bill 642 would 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 would increase 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, it would also add an occupancy requirement, stating seniors must have owned and lived in their home for at least three years. This expanded threshold would 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 bill would also create 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 would begin accruing interest at a reduced rate, providing taxpayers more time and flexibility to meet their obligations without facing harsh penalties. Counties would 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.

Senate Bill 642 passed the Senate and heads to the governor for further consideration.