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Cook County, IL Local Taxes & Fees: Business Tax Classification (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified August 2026

Key Facts

Class 5a (commercial)
25% of market value
Class 5b (industrial)
25% of market value
Class 2 (owner-occ. home)
10% of market value
Incentive classes 6b/7a/7b/8
10% for up to 12 years
Administered by
Cook County Assessor's Office

Summary

Cook County taxes business real estate under its own classification system: commercial (Class 5a) and industrial (Class 5b) property is assessed at 25% of market value, more than double the 10% rate for owner-occupied homes.

City-specific rules exist: Skokie, Oak Lawn, and Evanston have their own business tax classification rules that differ from Cook County's county-level regulations. If you live in one of those cities, check the city-specific page instead.

Class 5a. All real estate not included in Class 1, Class 2, Class 3, Class 4, Class 5b, Class 6b, Class C, Class 7a, Class 7b, Class 7c, Class 7d, Class 8, Class 9, Class S or Class L of this Section. ... Class 5b. All real estate used for industrial purposes as defined herein and not included in any other class.

Source: Cook County Code of OrdinancesView official code

Full Breakdown

Cook County's Real Property Assessment Classification Ordinance (Code §§ 74-60: 74-75) sorts every parcel into a tax class that sets its assessment level, the percentage of market value the Assessor taxes. General commercial real estate is Class 5a and industrial property is Class 5b, both assessed at 25%, versus 10% for owner-occupied homes (Class 2) and most apartment buildings (Class 3, § 74-64). A business building new industrial or commercial space, substantially rehabbing an existing structure, or reoccupying abandoned property can apply to the Assessor for an incentive class (6b, 7a, 7b, 8), which drops the assessment level to 10% for up to 12 years with municipal or County Board consent.

Violations & Fines

Losing or misusing an incentive classification reverts the property to full Class 5 (25%) assessment, and the owner must reimburse the County Collector the tax difference for the period the incentive was wrongly applied.

Frequently Asked Questions

What tax class applies to a Cook County business property?
Most commercial real estate is Class 5a and industrial property is Class 5b, both assessed at 25% of market value under Cook County Code § 74-63, roughly 2.5 times the 10% level for owner-occupied homes.
Can a business qualify for a lower assessment?
Yes: new construction, substantial rehab, or reoccupied abandoned industrial or commercial property can apply for an incentive class (6b, 7a, 7b, 8), cutting the assessment level to 10% for up to 12 years.

Sources & Official References

Other rules in Cook County

All Cook County rules

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Business Tax Classification in Cities Across Cook County