It is commonly assumed that incorporating as a nonprofit or obtaining federal 501c(3) tax status automatically makes an Illinois nonprofit corporation eligible for property tax exemption. However, this is not the case. According to Illinois law, all property owners must pay taxes unless they can prove they are entitled to an exemption.

The most common exemption from real estate taxes for nonprofits is the ownership and use exemption. The real estate at issue must be owned and used by the nonprofit, and its primary use must be for your organization’s charitable purposes.

Applications submitted by nonprofit entities, such as 501(c)(3) organizations, undergo an initial review by the local county. After review, the application is forwarded to the Illinois Department of Revenue for final review and approval. To assist applicants through this process, the Board of Review has developed a Non-Homestead Property Exemption Form Packet (PTAX-300), which can be viewed and printed by clicking the following link.

NON-HOMESTEAD PROPERTY EXEMPTION FORM PACKET (PTAX-300)