Starting in 2026, the Cook County Assessor's Office will be implementing a loaded cap rate when valuing all commercial properties.
This means the real estate taxes will not be deducted as a line-item operating expense as was previous practice.
Instead, a tax load will be added to the base capitalization rate or market capitalization rate. There are two separate components in arriving at a final Loaded Capitalization Rate: the Market Capitalization Rate and the Tax Load.
Market Capitalization Rate
The CCAO’s concluded market capitalization rate is derived from market data, third-party sources, past appeal information for similar properties, and recent sales of comparable properties.
Tax Load
The Tax Load is the product of a property’s level of assessment (LOA), the equalization factor, and the tax rate.
Example: A commercial property (5-17 classification) in a tax year with an equalization factor of 3.0355 and a tax rate of 8.970% would have a tax load of 6.81% (rounded). Formula: 25% (LOA for a 5-17 property) x 3.0355 (Equalization Factor) x 8.970% (Tax Rate) = 6.81%.
Examples:
- A property with $100,000 of net operating income (real estate taxes excluded from operating expense deduction) divided by a 16.06% loaded cap rate (9.25% market cap rate + 6.81% tax load) has an estimated market value of $622,665 or $623,000 rounded.
- A property with $100,000 of net operating income (real estate taxes excluded from operating expense deduction) divided by a 13.06% loaded cap rate (6.25% market cap rate + 6.81% tax load) has an estimated market value of $765,696 or $766,000 rounded.
Township and Tax Rate Information
The CCAO has published the estimated 2026 Tax Rates and Effective Tax Rates for each tax code. Below, you will find more information about the South, North, and City estimated tax rates we will use for 2026 assessments.
South Townships
The 2026 estimated tax rates will mirror 2023 actual tax rates. The CCAO analyzed several different tax rate estimation methods for reassessment townships. The best performing method was to implement the tax rate 3 years prior (2023), which was the last reassessment year for the South triennial. Additionally, the CCAO will use the 2023 Equalization Factor to calculate the effective tax rate.
City Townships
The 2026 estimated tax rates will mirror the 2024 actual tax rates (most recent published tax rates), and the CCAO will use the 2024 equalization factor (most recent published equalization factor).
North Townships
The 2026 estimated tax rates will be the CCAO 2025 estimated tax rates, and we will use the 2024 equalization factor (most recent published equalization factor).