IL HB5378

Expands the homestead exemption for veterans with service-connected disabilities of 50% or more to exempt the first $250,000 in equalized assessed value from property taxes, effective for taxable year 2026 and thereafter.

Under current law, veterans with 50-69% disability receive only a $5,000 annual exemption, while veterans with 70%+ disability receive the $250,000 exemption; this bill eliminates that distinction for those at 50% or above.

Veterans with 30-49% service-connected disability continue to receive a $2,500 annual exemption.

Surviving spouses of veterans whose deaths were service-connected and who receive federal dependency and indemnity compensation also qualify for the $250,000 exemption.

Introduced by Rep. Wayne A. Rosenthal in the 104th Illinois General Assembly; takes effect immediately upon becoming law.