Chicago's TIF districts will collect a record $1.62 billion, but growth slowed to 2%. What that means for the budget's $520 million surplus

Chicago's 108 tax increment financing districts will take in a record $1.62 billion from tax year 2025 property tax bills, up $33.6 million, or 2.12%, from the year before, according to Cook County Clerk Monica Gordon's annual TIF report. It was the smallest increase in five years, WTTW reported. A year earlier, TIF revenue jumped 16.6%, WTTW reported in January.

Why it matters: TIF districts keep the growth in property taxes inside their boundaries for local projects. The Mayor's 2027 budget depends on declaring part of that money surplus and handing it back to the City, Chicago Public Schools and other taxing bodies. With the Council majority now rejecting his new taxes (our story), TIF cash is one of the few large pots members can point to.

The numbers

• $1.62 billion is about 17.9% of all property tax billed in Chicago, the Clerk's report says. Nearly one in four Chicago properties sits inside a TIF district, per the Clerk's Chicago overview.
• Ten districts each collected more than $35 million, WTTW reported, including two that pay for the CTA's Red and Purple line rebuild and the Red Line Extension.
• A different count: the Cook County Treasurer's tax bill analysis puts City TIF taxes at nearly $1.4 billion, about 15.2% of City property taxes billed, using its own method. The two offices measure differently, so their figures shouldn't be mixed.

What it means for the 2027 budget

The Mayor's plan counts on about $520 million in TIF surplus, and CPS is counting on $285 million from the City next year, as we reported from the Planning Department's budget hearing. That surplus comes from cash districts have already built up, not from this year's growth, but slower growth means less new money flowing in behind it.

At that hearing, Ald. Timothy Knudsen (43rd) read the budget office's rule: cash above $2.5 million, based on each district's lowest projected balance, is declared surplus. He named four districts with large projected balances and no surplus assigned: Chicago/Central Park, Galewood/Armitage Industrial, Lake Calumet Area Industrial and Washington Park. Planning Commissioner Ciere Boatright said the budget office, not her department, decides.

What our records add

Two TIF bills wait in the Finance Committee: the Mayor's ordinance re-establishing the TIF Neighborhood Improvement Program for home repairs (O2026-0029411), introduced Oct. 14, and Ald. Raymond Lopez's broader version (O2026-0025481), there since May 20. The Finance Committee meets Monday (meeting page); its agenda wasn't posted as of Wednesday morning.

The Council's December budget votes will set the surplus. Last year's Council-written 2026 revenue plan passed 29 to 19 (SO2025-0021719).

What's next

• Nov. 16: Finance Committee.
• Dec. 8: the Council's public hearing on the budget.
• Dec. 31: the budget deadline. CPS's new elected board, seated Jan. 15, inherits whatever the City decides (our story).