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Estate and Inheritance Tax in Illinois

Illinois has a state estate tax with a $4,000,000 exclusion amount and a top rate of 16%; it has no inheritance tax.

Last checked . General information, not legal advice.

Illinois at a glance

State estate tax
Yes
Estate tax exemption
$4,000,000
Not indexed for inflation; $4,000,000 for deaths on or after January 1, 2013.
Top estate tax rate
16%
Illinois uses the 2001 federal state death tax credit table, whose top rate is 16% on the adjusted taxable estate over $10,040,000.
Inheritance tax
No

Sources

Last checked

The rules in Illinois

Does Illinois have a state estate tax?

Yes. State estate tax in Illinois: yes.

What is the estate tax exemption in Illinois?

Estate tax exemption in Illinois: $4,000,000. Not indexed for inflation; $4,000,000 for deaths on or after January 1, 2013.

What is the top estate tax rate in Illinois?

Top estate tax rate in Illinois: 16%. Illinois uses the 2001 federal state death tax credit table, whose top rate is 16% on the adjusted taxable estate over $10,040,000.

Does Illinois have an inheritance tax?

No. Inheritance tax in Illinois: no.

Where do the Illinois estate and inheritance tax rules come from?

The rules above come from 35 ILCS 405/2. Each source is linked on this page. We last checked them in October 2026.

Good to know

The Illinois tax equals the federal state death tax credit as computed under the Internal Revenue Code in effect on December 31, 2001, so the rate schedule is not printed in the Illinois statute.

35 ILCS 405/2 was last amended by P.A. 104-852, effective August 21, 2026; the $4,000,000 exclusion is unchanged in the current text.

What this means in practice

State estate tax exemptions can be much lower than the federal exemption, so an estate that owes no federal tax may still owe state tax. Some states adjust their exemption each year for inflation, so check the amount for the year of death.

Real estate is generally taxed by the state where it is located. A person who lives in one state and owns land in another may need to consider the rules of both states, which is one reason some people hold out-of-state property in a living trust.

Estate and inheritance tax returns have filing deadlines and may require payment before the estate is closed. Executors often work with a tax professional to value assets, claim deductions such as the marital and charitable deductions, and file on time.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.