Single Family Home Tax Rebate Program

Quality of Life: Urbana, Illinois
The Urbana Free Library, founded in 1874, is ranked among the top one percent of American public libraries.

Urbana School District 116 has 11 first-rate schools, as well as a comprehensive adult education program. The University of Illinois is recognized as one of the top universities in the world.
The Urbana Park District has 23 parks and seven facilities, including the Philips recreation Center, the Lake House at Crystal Lake Park, the Anita Purves Nature Center, an indoor aquatic center and a dog park. It offers hundreds of group activities, classes and recreational options for everyone.
Urbana special events and social highlights include Market at the Square, the Sweetcorn Festival, the International Beer Tasting and Chili Cook Off, Boneyard Arts Festival, and many more!
In recent years, Urbana has been cited by the National Home Builders Association as one of the top ten most affordable housing markets in the United States. Urbana’s home builders work to provide custom homes in beautiful settings, in conjunction with Build Urbana. Under this program, the City of Urbana offers the tax rebate incentive to homeowners of newly constructed homes.
New Urbana Subdivisions Printable Brochure
For more information, contact:

City of Urbana
Community Development Services
400 S. Vine Street
Urbana, IL 61801
Phone: (217) 384-2444
Fax: (217) 384-0200

What is the Single Family Home Tax Rebate Program?

  • Increases new home construction in Urbana

  • Rebates the difference between the total property tax rate in Urbana and Champaign

  • Allows the property owner of a newly constructed single-family home a tax rebate for up to 5 years

  • Also applies to newly constructed land lease condo-miniums, duplexes, zero lot line town homes, and co-ops

  • The home must be within Urbana city limits

  • The home’s building permit must have been issued between March 1, 2001 and December 1, 2010

  • The rebate is transferable to subsequent owners within the 5-year time frame

  • The homeowner will still need to pay the complete amount of taxes assessed by the County before receiving a tax rebate from Urbana

  • The homeowner will be issued the reimbursement portion (the rebate) in the mail by the City of Urbana Finance Department each year for five years after receiving the first full property assessment

  • Applies to owner-occupied units only

Here’s an example:

Assume a new home with a sale price of $150,000. The tax rebate program will rebate the difference in the tax bill for the home purchased in Urbana with that of a home of the same price in Champaign. In our assumed example, we would divide the home’s value of $150,000 by 3, to determine the assessed value, then divide by 100, and multiply by 8.1149 (Urbana’s tax rate), which equals $4,057.45. By doing the same with a factor of 7.2430 (Champaign’s tax rate), we have $3,621.50. The difference of $435 will be the approximate rebate, which could total $2,179 over 5 years.