What the Chicago Payment Plan covers and how it works
Chicago offers payment plans for property taxes and water bills that let you spread what you owe across multiple months instead of paying in one lump sum. The city runs these separately — the property tax plan is managed by the Cook County Assessor's Office, and the water bill plan is managed by the Department of Water Management. Both allow you to avoid a lump-sum payment, but the terms, deadlines, and how you set them up differ between the two.
A payment plan does not erase what you owe or reduce the amount. It restructures the debt into smaller monthly or quarterly payments. Interest and penalties may still apply depending on how far behind you are and which program you use. The goal is to keep your account from going to tax sale (for property taxes) or having your water shut off (for water bills).
Key Takeaways
- Chicago property tax payment plans are set up through the Cook County Assessor's Office, and you must request one before the tax sale date to stop the foreclosure process.
- Water bill payment plans are managed by the Department of Water Management and can be arranged by phone, online, or in person at their office.
- Property tax plans typically require you to pay current-year taxes in full while spreading back taxes across 12 to 24 months.
- Water bill plans usually allow you to spread arrears over 12 months, and the city can still shut off service if you miss payments under the plan.
- Both programs require you to stay current on new bills while paying down the plan, or the agreement may be cancelled.
Property tax payment plans through Cook County
If you own property in Chicago and owe back property taxes, the Cook County Assessor's Office administers the payment plan. You must request the plan before the property goes to tax sale. Once a property enters the tax sale process, you lose the right to a payment plan and the city can foreclose on your home.
The standard property tax payment plan requires you to pay the current year's taxes in full upfront. Back taxes — what you owe from prior years — are then spread across 12 to 24 months, depending on the total amount owed. You will owe interest on the back taxes at the rate set by Cook County, which changes annually. Penalties may also apply if your account was in default.
To request a property tax payment plan, contact the Cook County Assessor's Office directly at 312-443-7550 or visit their office at 69 W. Washington Street, Suite 2830, Chicago, IL 60602. You will need your property address and the tax bill or notice showing what you owe. The office will review your account and tell you whether a plan is available and what the monthly payment would be.
Water bill payment plans through the Department of Water Management
The City of Chicago Department of Water Management allows you to set up a payment plan for water and sewer arrears. Unlike the property tax program, you can request a water payment plan at any time — there is no deadline before service is shut off, though the city can disconnect your water if you fall behind on the plan itself.
Water payment plans typically spread arrears over 12 months. The exact monthly payment depends on how much you owe. You can set up a plan online through the city's water billing portal, by phone at 311, or in person at the Department of Water Management office at 1000 E. Ohio Street, Chicago, IL 60611. You will need your account number, which appears on your water bill.
Once you are on a water payment plan, you must also stay current on new water bills as they arrive. If you miss a payment on the plan or fall behind on current bills, the city can cancel the agreement and proceed with shutoff. The plan does not forgive interest or late fees already added to your account.
What you need to set up a payment plan
For a property tax payment plan, have ready: your property address, the tax bill or assessment notice showing the amount owed, and proof of ownership (deed or property tax card). If you are not the owner but have authority to act on the account, bring documentation of that authority. The Cook County Assessor's Office will ask about your income and ability to pay, though this is not a formal means test — it helps them set a realistic payment amount.
For a water bill payment plan, you need your account number (on your bill) and a way to make monthly payments. The city accepts online payments through their portal, automatic bank withdrawals, or checks mailed to the Department of Water Management. If you are setting up the plan by phone through 311, have your account number ready and be prepared to discuss the total amount owed.
Timeline and payment schedules
Property tax payment plans can take 1 to 2 weeks to set up once you contact the Cook County Assessor's Office. The first payment is usually due within 30 days of approval. Payments then continue monthly or quarterly depending on the plan terms. The entire back-tax balance must be paid before the next tax bill is issued, or the plan may be cancelled.
Water payment plans are faster to set up — often the same day if you call 311 or use the online portal. Your first payment is typically due within 15 to 30 days. Payments continue monthly for 12 months. If you miss even one payment, the city may cancel the plan and resume collection or shutoff procedures.
What happens if you miss a payment or fall behind again
If you miss a payment on a property tax plan, the Cook County Assessor's Office will contact you. Missing multiple payments can result in cancellation of the plan, and your property may re-enter the tax sale process. Once that happens, you lose the right to a new payment plan and foreclosure can proceed.
If you miss a water payment, the Department of Water Management will attempt to contact you. A missed payment can trigger cancellation of the plan, and the city can then shut off your water service or pursue collection. Unlike property taxes, you can request a new water plan even after one is cancelled, but the city may require you to pay a portion of the arrears upfront before approving a second plan.
If you are struggling to keep up with payments, contact the program immediately. The Cook County Assessor's Office or Department of Water Management may be able to modify the plan — extend the timeline, lower the monthly payment, or pause payments temporarily if you face a documented hardship. Do not wait until you miss a payment to reach out.
Alternatives if a payment plan is not an option
If you cannot afford a payment plan or your property is already in tax sale, you may be able to redeem the property by paying the full amount owed plus costs before the sale closes. This must happen within a specific window — usually before the tax deed is issued. Contact the Cook County Assessor's Office immediately if your property is in sale.
For water bills, if you cannot afford a payment plan, the city offers a low-income water rate reduction program that lowers your monthly bill if you meet income limits. This does not erase arrears but can make ongoing bills more manageable. You can also contact a local community action agency or legal aid organization to discuss hardship options or potential forgiveness programs.
Frequently Asked Questions
Can I set up a payment plan if my property is already in tax sale?
No. Once a property enters tax sale, you lose the right to a payment plan. You must contact the Cook County Assessor's Office before the sale date to request a plan. If your property is already in sale, your only option is to redeem it by paying the full amount owed plus sale costs before the tax deed is issued.
Do I have to pay current-year property taxes in full if I set up a plan for back taxes?
Yes. The payment plan covers only back taxes from prior years. You must pay the current year's taxes in full upfront, and you must stay current on all future tax bills. Falling behind on current taxes can cancel the plan.
What if I cannot afford the monthly payment the city offers?
Contact the program and explain your situation. The Cook County Assessor's Office and Department of Water Management can sometimes modify the plan — extend the timeline, lower the payment, or pause temporarily for documented hardship. Asking before you miss a payment gives you more options than waiting until you fall behind.
Can the city shut off my water if I am on a payment plan?
Yes, if you miss a payment on the plan or fall behind on current water bills. The payment plan is a conditional agreement. Staying current on both the plan payment and new bills is required to keep service active.
Do payment plans include interest and penalties?
Yes. Property tax plans include interest set by Cook County and may include penalties if your account was in default. Water payment plans do not add new interest but do not remove interest or fees already on your account. The payment plan restructures the debt but does not erase it.