You plan your move carefully, so surprise tax bills at closing are the last thing you want. If you are buying or selling in Highland Park or nearby North Shore communities, the timing of property tax bills in Lake County and Cook County can change your cash to close. Add in Kenosha County, Wisconsin, and the calendar shifts again. In this guide, you will learn how tax timing works, how closings handle prorations, and what to request early so you avoid costly surprises. Let’s dive in.
Property tax basics you can count on
Property taxes are usually paid in arrears, which means counties bill and collect after the tax year ends. At closing, you and the other party typically prorate the taxes so each pays only for the days you own the home. Most settlements use a per-day formula based on a recent bill or a documented estimate.
The closing proration only shifts dollars between buyer and seller on the settlement statement. It does not change who receives the official bill from the county. If there are unpaid or delinquent taxes, title companies usually require a payoff at closing so the buyer takes clear title.
Lake County timing: Highland Park essentials
Highland Park is in Lake County, Illinois. The Lake County Treasurer and Assessor keep the official tax history, bills, and payment records that most closings rely on. The cleanest approach is to use the most recent actual bill and receipts to calculate prorations.
If the current year’s bill is not out yet, most Lake County closings use last year’s final bill or a documented estimate. Check all exemptions on the county record, since owner-specific exemptions like a senior or homeowner exemption reduce the bill and affect prorations. Also ask about special assessments or levy changes that may raise the current year’s tax amount compared with last year.
Cook County contrasts to watch
Cook County has a large mix of overlapping taxing districts. Because of that complexity, year-to-year changes can be bigger and less predictable. Some neighborhoods also see different local customs for prorations.
If you cannot rely on a current bill, confirm with your attorney or title company whether you will use last year’s bill or a documented estimate. Where recent levy increases or appeal outcomes are known, parties often add a cushion to the proration so the final bill does not create a shortfall later.
Crossing into Wisconsin: Kenosha differences
Kenosha County, Wisconsin follows Wisconsin rules for assessments, exemptions, and billing calendars. Bill mailing months and installment dates can differ from Illinois, and proration customs may vary. Do not assume Illinois timing applies.
If a transaction touches both states, ask both county treasurers for billing calendars and confirm how the title company will handle cross-border proration. Exemptions differ by state, so review how any Wisconsin credits or exemptions appear on the bill and in the math.
Why timing affects cash to close
The date you close relative to the current bill matters. If the seller already paid the year’s taxes and you close later, you typically credit the seller for your post-closing share. If a bill is unpaid and becomes delinquent soon after closing, title companies often require a payoff or an escrow to prevent tax sale risk.
Year-to-year variability is real. Changes in levies, reassessments, or exemptions granted or removed can move the bill meaningfully. Review the last two to three years of tax history and ask about pending district referenda or special assessments in Lake County that could affect the current year.
How prorations work in practice
There are two common methods at closing:
- Bill-based proration: Use the most recent actual bill and prorate through the closing date.
- Estimated proration: When no current bill exists, use last year’s bill or a documented estimate based on assessed value and the latest levy. Settlement instructions should specify the basis and whether there will be an adjustment if the final bill differs.
Most contracts specify whether the closing day counts as the seller’s or the buyer’s day. When taxes are billed in installments, the title company may either annualize the total or require payoff or escrow if an installment is due near closing. Lenders and title insurers often require paying any due or delinquent amounts to eliminate lien risk.
Example proration calculation
- Annual tax (most recent bill): 6,570 dollars
- Daily rate = 6,570 dollars ÷ 365 = 18.01 dollars
- Closing date: buyer takes title on day 200 of the year (seller owned days 1–199)
- Seller’s share = 18.01 dollars × 199 = 3,581.99 dollars
- Buyer’s share = 6,570 − 3,581.99 = 2,988.01 dollars
Spell out whether the closing day is counted for the seller or the buyer in your contract. This avoids last-minute disputes and keeps the math consistent across documents.
What to request early: your tax-doc checklist
Gather these items as soon as you go under contract so your attorney, lender, and title company can lock in accurate prorations and cash-to-close.
- Last two years of property tax bills and receipts for all installments.
- Proof of any paid special assessments, municipal charges, or bond installments.
- Documentation of exemptions currently applied, such as homeowner, senior, or veteran.
- Official tax history from the county treasurer showing payments and delinquencies.
- Current unpaid tax status so you know what is due or delinquent.
- Title company tax search for liens, tax sale certificates, or recorded special assessments.
- Assessment roll and the most recent assessed value from the assessor to see trends.
- Any pending parcel-level special assessments or debt service charges.
- Confirmed proration basis and day-count language in your closing instructions.
- Who pays any installment due near closing, or whether funds will be escrowed.
- Lender and title insurer requirements for tax payoff or escrow.
- How refunds from appeals or changes after closing will be handled.
- Which exemptions carry over and which require the buyer to reapply.
- For cross-border deals, both counties’ billing calendars and state-level exemption differences.
Put a plan behind your North Shore closing
When you match the right tax documents with the right timing, you avoid surprises and keep your closing smooth. In Highland Park and across the North Shore, most issues come down to agreeing on the proration basis, confirming exemptions, and planning around any upcoming installment or escrow requirement. A clear plan lets you set a realistic budget and stay confident from contract to keys.
If you want a data-informed, step-by-step approach to your next move, reach out to Audra Casey. You will get local insight, disciplined process, and a closing plan that keeps your numbers on track.
FAQs
How do prorations work when the current bill is not issued?
- Use the most recent paid bill or a documented estimate, put that basis in your closing instructions, and consider an escrow if there is significant uncertainty.
Who pays if the county changes the tax bill after closing?
- The period responsibility usually follows ownership dates, and many contracts assign pre-closing adjustments to the seller and post-closing adjustments to the buyer, often handled through escrow or mutual agreement.
What happens if the seller already paid the full year’s taxes?
- The seller is typically credited at closing for the buyer’s post-closing share, so the seller is reimbursed for the portion that covers the buyer’s ownership period.
Do property tax exemptions transfer to the buyer?
- Most exemptions are owner-specific and do not automatically transfer; buyers usually must apply in their own name with the county assessor.
How are delinquent taxes handled at closing?
- Delinquent taxes are typically paid off by the seller at closing, and title companies or lenders may require payoff or escrow to remove tax lien risk.
