Illinois · 156th largest metro area

Buying a home in Peoria, Illinois

In Peoria, the median value of owner-occupied homes is $156,200, Peoria County's effective property tax rate is 2.24%, a purchase mortgage carried a median $2,930 in total loan costs in 2025, and median gross rent is $1,005 a month.

Data as of : Census ACS 2020-2024, Census Vintage 2024, HMDA 2025, HUD FY 2027. Sources

Peoria home costs, fact by fact

About Peoria

Peoria lies in the Peoria, IL metro area, home to 364,565 people and ranked 156th among US metro areas. Owners occupy 57.5% of the homes in this city.

Reading the Peoria figures

Peoria sits near the bottom of the Illinois range on price. Owners estimate the median home at $156,200, far under the statewide $294,400. Springfield is a touch higher, at $162,100, and Rockford is lower, at $129,000. Naperville, at $540,200, shows how wide the state's spread runs.

The county tax rate is the heavier side of the ledger. Peoria County's 2.24% rate, paired with a county median of $158,500, produces $3,552 a year. Rent of $1,005 is below the $1,212 HUD lists for the Peoria zone, so the monthly gap between renting and owning depends largely on that tax bill and on loan costs. Those costs were modest in 2025: $2,930 at the median over 1,657 loans, with typical quotes between $2,345 and $4,340. Only 57.5% of homes are owner-occupied. Springfield sits higher, at 64.3%, while Chicago, at 46%, sits lower.

Calculate for Illinois

If you buy

Illinois state transfer tax

Real Estate Transfer Tax (35 ILCS 200/31-10): $0.50 per $500 of value or fraction of $500. Change the price: the amount is recalculated instantly.

Price$294,400
State transfer tax$294.50
Share of the price0.1% of the price
Who paysShared by buyer and seller

Default price: the Illinois median value of owner-occupied homes, $294,400 (Census ACS 2025). Rule: Divide the value by $500, round up to the next whole unit, multiply by $0.50. If the deed is subject to a mortgage, the outstanding mortgage balance is left out of the base. Who pays: Per the Cook County Clerk table the seller is liable for the state and county taxes. In Chicago the buyer generally pays the $3.75 city portion and the seller the $1.50 CTA portion. Contracts can allocate differently. Not included: county and city transfer taxes, recording fees, title insurance and lender charges. Illinois transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Illinois state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Questions about buying a home in Peoria

How much is property tax in Peoria?

Homeowners in Peoria County pay a median $3,552 a year in property tax, 2.24% of the county median home value of $158,500 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in Peoria?

Home-purchase mortgages in Peoria County carried median total loan costs of $2,930 in 2025; half of the 1,657 loans fell between $2,345 and $4,340 (HMDA). Total loan costs are the lender and settlement-service charges of the Closing Disclosure; transfer taxes and prepaid items come on top.

Is there a transfer tax when you buy a home in Peoria?

Illinois taxes real estate transfers at $0.50 per $500 of value, Cook County adds $0.25 per $500, and the City of Chicago adds $5.25 per $500, for a Chicago total of $6.00 per $500 (1.2% of the price). The seller is named for the state and county taxes.

Is it cheaper to rent or buy in Peoria?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in Peoria ($156,200) equals 13 years of the median gross rent ($1,005 a month), both from Census ACS 2020-2024.

Run your own numbers: rent vs buy calculator · closing costs calculator.

Illinois rules that apply in Peoria

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Sources

Illinois · All states · Federal guides