Property Tax Relief Grant
Property Tax Relief Grant supports Illinois school districts by partially replacing revenue lost through property tax abatements, helping reduce local taxpayers’ burdens and linking relief to state school funding.
Funder: Illinois State Board of Education
Due Dates: January 13, 2027 (Application) | March 30, 2027 (County abatement resolution) | April 15, 2027 (ISBE certification)
Funding Amounts: $48,741,500 available for FY 2027; one-year grants partially offset property tax abatements
Summary: Supports Illinois school districts in lowering local property tax bills through state funding that partially replaces abated tax revenue.
Key Information: Recipients must abate taxes for three consecutive years to retain the grant in their Base Funding Minimum.
Description
The Illinois State Board of Education (ISBE) administers the Property Tax Relief Grant through the Evidence-Based Funding framework. The program gives school districts with high tax rates relative to other districts an opportunity to reduce local taxpayers’ property tax burden. State grants replace only a portion of the revenue districts forgo through tax abatements, rather than fully compensating them.
Grant priority is determined by comparing each district’s Adjusted Operating Tax Rate with the average for its organization type: elementary, unit, or high school. Award calculations also account for property values and Local Capacity Percentage, with the abatement calculation providing greater tax relief to under-resourced districts. Grants become part of future Base Funding Minimum calculations, connecting local tax relief with the district’s longer-term Evidence-Based Funding position.
