Chicago’s City Council narrowly passed a 2025 budget, worth $17.1 billion, on Dec. 16. After weeks of negotiation, it included no property tax increases whatsoever.

Mayor Brandon Johnson first proposed a $300 million property tax increase in mid-November, which the City Council unanimously rejected. Johnson then lowered the potential hike to $150 million, then again, to $68.5 million.

That $68.5 million increase passed through various committees and was to be voted on Dec. 13. But that vote was pushed to Monday afternoon after it became clear it would not pass.

By Monday, the proposed budget had lost the tax hike entirely, which leaves a hole in the budget. Plans to fill it included refinancing payments on a $40 million debt tied to the Michael Reese hospital site, as well as middle management layoffs, estimated to save $2.8 million.

Following the City Council vote, Illinois REALTORS® released a supportive statement:

“For almost two months, REALTORS® executed a strategic campaign to show City leaders that any property tax hike would exacerbate rising housing costs, endanger neighborhoods and local businesses, and worst of all, displace already vulnerable residents. Our efforts, which resulted in thousands of messages and phone calls to the mayor and City Council, gave residents a voice. We thank the majority of aldermen for listening.”

The message comes as property taxes remain a major concern across the state. On the Nov. 5 ballot, Illinoisans showed support for the so-called “millionaire tax” referendum. This non-binding measure calls for establishing an extra 3% tax on income exceeding $1 million; these funds would then be used to offset general property taxes.