Taxes in Waukegan

Waukegan layers a real, elevated property tax rate on top of Illinois's simple flat 4.95% state income tax, but carries a genuinely LOWER combined sales tax than Cook County suburbs.

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A Real, Elevated Property Tax Rate Despite Lower Home Values

Waukegan's median effective property tax rate ran approximately 2.89%, above even the Illinois statewide median cited by the same source (2.35%) -- producing an average annual bill of approximately $4,212 despite the city's genuinely lower home values.

A Real, Genuinely Lower Combined Sales Tax

Waukegan's combined sales tax rate ran approximately 8.5% -- genuinely lower than every Cook County suburb documented elsewhere in this project's Illinois buildout, since Waukegan sits in Lake County outside Cook County's own RTA/special-district sales tax layers.

Illinois's Flat Income Tax and Retirement-Income Exemption

Illinois's flat 4.95% state income tax applies to earned income statewide, but Illinois taxes NONE of a retiree's Social Security, pension, or 401(k)/IRA income -- a real, substantial positive that applies identically in Waukegan.

Key takeaways

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Last reviewed: 2026-08-25. Independent research; not financial, tax, or legal advice -- confirm current figures with a local professional before making a decision.