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Updated 2025 Tax Year

Montgomery County
Property Tax Guide

Everything you need to know about property taxes in Montgomery County, IL. Rates, due dates, exemptions, and how it affects your monthly payment.

10 Official Sources
8 min read
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Quick Facts
Tax Rate
1.13% effective rate (varies by district and taxing bodies within Montgomery County)
1st Due
Jun 1
2nd Due
Sep 1
Exemptions
5+ Available
Section 1

How Property Tax Works

Montgomery County, Illinois operates under a property tax system that funds essential local services including schools, county government, townships, and various special districts. Property taxes are the primary revenue source for these local governments, supporting everything from education and public safety to road maintenance and library services. The county follows Illinois state property tax laws, including the Property Tax Extension Limitation Law (PTELL), which limits annual tax increases.

The effective property tax rate in Montgomery County is estimated at approximately 1.13% for the 2025 tax year, though this represents an average across the county. Your actual tax rate will vary significantly based on your specific location within Montgomery County, as different combinations of school districts, municipalities, townships, fire districts, and other special taxing districts create unique tax rates for different areas. Property owners should expect their individual rates to differ from the county average depending on which local taxing bodies serve their property.

Property taxes in Montgomery County are assessed annually and collected in two installments. The assessment process determines your property's equalized assessed value (EAV), which is then multiplied by the applicable tax rates for all taxing districts that serve your property to calculate your total annual tax bill.

Section 2

What Makes Up Your Tax Bill

ComponentEstimated RateDescription
County General0.15%County operations, courthouse, sheriff, clerk
County Highway0.08%Road maintenance and construction
School Districts0.65%Elementary and high school districts (varies by district)
Township0.12%Township services, road maintenance
Community College0.08%Kaskaskia College district
Fire District0.03%Fire protection services (where applicable)
Library District0.02%Public library services (where applicable)
Total Average1.13%Combined rate for FY 2025-2026

Note: These rates are estimates for the 2025-2026 levy year and vary significantly by location within Montgomery County. Your actual tax rate depends on which specific taxing districts serve your property. The final tax rates are typically finalized by December 1st each year. Some areas may have additional special districts not listed above, while others may not be served by all districts shown.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Montgomery County, property taxes are due in two installments:

First Installment
Jun 1
Delinquent after Dec 10
Second Installment
Sep 1
Delinquent after Apr 10
Pro tip: If you pay through mortgage escrow, your lender splits these payments across your monthly mortgage. If you pay directly, set calendar reminders to avoid late penalties.
Section 4

Supplemental Tax Bills

Supplemental taxes in Montgomery County are additional property tax bills issued when there are significant changes to a property during the tax year that affect its assessed value. The most common triggers for supplemental taxes include new construction completion, substantial property improvements, changes in property ownership that trigger reassessment, or corrections to previous assessments.

When a supplemental tax is issued, it represents the difference between what you originally owed and what you should owe based on the changed circumstances. For example, if you complete a home addition that increases your property's assessed value by $50,000 mid-year, you would receive a supplemental bill for the additional taxes owed on that $50,000 increase, prorated for the portion of the year the improvement was complete.

Example: If your home addition worth $50,000 in assessed value is completed on July 1st, and your total tax rate is 1.13%, you would owe a supplemental tax of approximately $283 ($50,000 × 1.13% × 0.5 years = $282.50) for the remaining six months of the tax year. This supplemental bill would be issued separately from your regular property tax installments.

Example Calculation

Example 1: $300,000 Home

  • Market Value: $300,000
  • Assessed Value (33.33%): $100,000
  • Homeowner Exemption: -$10,000 (requires application)
  • Net Taxable Value: $90,000
  • Tax Rate: 1.13%
  • Annual Tax: $1,017
  • Monthly Escrow: $85

Example 2: $600,000 Home

  • Market Value: $600,000
  • Assessed Value (33.33%): $200,000
  • Homeowner Exemption: -$10,000 (requires application)
  • Net Taxable Value: $190,000
  • Tax Rate: 1.13%
  • Annual Tax: $2,147
  • Monthly Escrow: $179

Example 3: $1,000,000 Home

  • Market Value: $1,000,000
  • Assessed Value (33.33%): $333,333
  • Homeowner Exemption: -$10,000 (requires application)
  • Net Taxable Value: $323,333
  • Tax Rate: 1.13%
  • Annual Tax: $3,654
  • Monthly Escrow: $305

Note: The homeowner exemption requires annual application and is not automatically applied. Additional tax credits may be available for seniors, veterans, or disabled persons, but all require separate applications with specific deadlines.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Montgomery County require property tax escrow accounts for borrowers with less than 20% down payment, though some lenders may require escrow regardless of down payment amount. Your lender collects monthly escrow payments along with your mortgage payment, depositing these funds into a dedicated escrow account to pay your property taxes when due.

Lenders typically pay your property taxes directly to the Montgomery County Treasurer on the June 1st and September 30th due dates. Your lender will receive the tax bills and handle payment timing automatically. However, you should verify that your lender has your correct property identification number and that payments are made on time, as you remain ultimately responsible for ensuring taxes are paid even when using escrow.

It's important to review your annual escrow analysis statement, usually provided each fall, to understand any changes in your monthly escrow payment. Since property tax bills can increase due to rate changes or assessment increases, your lender may need to adjust your monthly escrow amount and may require a one-time payment if the escrow account becomes short. You can also request an escrow analysis at any time and have the right to pay any escrow shortage in monthly installments over 12 months rather than a lump sum.

How HonestCasa Helps
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  • See how rising taxes will change your monthly payment
  • Plan ahead instead of being surprised by "shortage" letters
Section 6

Frequently Asked Questions

Q: When are property taxes due in Montgomery County for the current fiscal year? A: Property taxes for the 2025-2026 fiscal year are due in two installments: June 1, 2026, and September 30, 2026. If tax bills are mailed after May 1st, the first installment becomes due 30 days after the bill date.

Q: What tax credits are available and do they require applications? A: The primary tax credit is the Homeowner Exemption, which reduces your equalized assessed value by up to $10,000, requiring annual application. Additional credits may be available for seniors, veterans, and disabled persons, but all credits require separate applications with specific deadlines. None are automatic.

Q: How does the Homestead Exemption work? A: The Homestead/Homeowner Exemption reduces your property's equalized assessed value by up to $10,000, effectively lowering the amount subject to taxation. This is an exemption from assessed value, not a direct reduction in your tax bill. You must file an application with the County Assessor's office, and it must be renewed periodically.

Q: When are properties assessed and how can I appeal? A: Montgomery County conducts property assessments annually. Assessment notices are typically mailed in spring. If you disagree with your assessment, you can appeal to the Montgomery County Board of Review. Appeal deadlines are strictly enforced, usually 30 days from the assessment notice date.

Q: What are the penalties for late payment? A: Late payments incur penalties and interest charges. If the first installment is paid late, penalties typically begin accruing after the due date. Unpaid taxes can eventually result in tax sale proceedings, so prompt payment is essential.

Q: Can I pay my property taxes online? A: Yes, Montgomery County offers online property tax payments through the County Treasurer's office. You can also pay by mail or in person at the Treasurer's Office located at the Montgomery County Historic Courthouse, 1st Floor, Room 101, Hillsboro, IL 62049.

Q: Why do property tax rates vary within Montgomery County? A: Different areas of Montgomery County are served by different combinations of school districts, municipalities, townships, fire districts, and other special taxing districts. Each taxing body sets its own rate within legal limits, so your total rate depends on which specific districts serve your property location.

Q: How do I apply for the Homeowner Exemption? A: Contact the Montgomery County Assessor's office at assessor@montgomerycountyil.gov or visit their office to obtain the application form. The exemption is not automatic and requires proper application with documentation proving owner occupancy.

Verified Sources

Backed by 10 Official Government Sources

Every fact in this guide is sourced from official county, state, and federal documents.

01
Montgomery FY26 Draft Budget 090925.xlsxmontgomerycountyil.gov
02
Tax Doc
Property Tax Rebate Programci.montgomery.il.us
03
Tax Doc
Property Taxesmontgomerycountyil.gov
04
Tax Doc
When do I have to pay my property taxes?tax.illinois.gov
05
County
Montgomery County, Illinoismontgomerycountyil.gov
06
Supervisor of Assessmentsmontgomerycountyil.gov
07
County
Montgomery County Board of Review 2025 Rules and Proceduresmontgomerycountyil.gov
08
Tax Doc
Property Tax - Exemption Information (PIO-74)tax.illinois.gov
09
Treasurer's Report of Revenues 2023montgomerycountyil.gov
10
County
Treasurer – Montgomery County, Illinoismontgomerycountyil.gov
All sources verified as of 2025 Tax Year

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