IL HB4134

Enhances the homestead exemption for persons with disabilities beginning in taxable year 2026 by allowing the exemption amount to be the greater of $2,000 or an amount that freezes the property tax liability at the level from the year before the owner first qualified for the exemption

Through taxable year 2025, the homestead exemption for persons with disabilities remains at the current $2,000 flat amount

For new property owners qualifying in 2026 or later, the $2,000 exemption applies for their first (base) year, with the tax freeze calculation applying in subsequent years

Applies to primary residences where the person with a disability is the owner of record and liable for property taxes, including cooperative apartments and life care facilities

Takes effect immediately upon becoming law