IL SB3868

Doubles the Illinois income tax credit for residential property taxes from 5% to 10% of property taxes paid on a taxpayer's principal residence, effective for tax years ending on or after December 31, 2026

Income limits remain unchanged: taxpayers with adjusted gross income exceeding $500,000 (joint filers) or $250,000 (all others) are ineligible for the credit

Exempts this property tax credit from the Illinois Income Tax Act's automatic sunset provision, making it permanent

Applies to individual taxpayers, with multi-unit structures, multi-use properties, and farm dwellings eligible for a proportional credit based on the principal residence portion

Introduced February 6, 2026 by Senator John F. Curran; takes effect immediately upon becoming law