If you are a Korean family looking for a home in the northern suburbs of Illinois, it makes sense to check property taxes first. Illinois is one of the states with the highest property tax burdens in the country, and Arlington Heights, located in Cook County, is noted for having particularly high rates.

The overall median effective tax rate in Cook County is about 2.14%, while Arlington Heights has a higher rate of around 2.5%. There can be significant variations depending on the township and school district, and even within the same city, property tax amounts can differ by over a thousand dollars based on zip codes.

The median home value in Arlington Heights is approximately $340,000, which translates to an annual property tax of about $8,400. This is more than three times the national median property tax (around $2,400) and should be one of the first items to consider when budgeting for suburban housing in Illinois.

Insurance premiums typically range from $1,400 to $1,800 annually for the northern and central regions of Illinois. While the area is part of the tornado belt, which means that wind and hail damage are considered by insurers, the risks are not as extreme as those from hurricanes in coastal areas.

Maintenance costs can be estimated at about 1.5% of the home value, which amounts to roughly $5,100 per year. Adding property taxes and insurance premiums, the total annual cost of homeownership is approximately $15,000. This means you need to prepare this amount in cash flow each year, separate from mortgage principal and interest.

Even within Cook County, the median effective tax rate in downtown Chicago is around 1.66%, significantly lower than that of Arlington Heights. In contrast, nearby high-performing school districts in the North Shore area (such as Glenview, Northbrook, and Wilmette) often show similar or even higher tax burdens compared to Arlington Heights.

Illinois uses a method of deductions from the EAV (Equalized Assessed Value) for various exemptions, such as the General Homestead Exemption and senior exemptions, rather than a low uniform reduction like in Georgia or Hawaii. Since exemption applications do not automatically renew, it is advisable to check with the Cook County Assessor's Office after closing to ensure you are accurately registered in your name.

Many Korean families prioritize school districts when choosing Arlington Heights, and it is realistic to understand that the high property taxes ultimately fund the excellent public school district's finances when budgeting.