Illinois · Estate planning

Illinois Estate Tax and Inheritance Tax Rules

Illinois imposes a state estate tax. For persons dying on or after January 1, 2013, the Illinois exclusion amount is $4,000,000 under 35 ILCS 405/2; the attorney-general estate-tax instructions use the same $4,000,000 figure.

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Answer first, sources attached

The two state transfer-tax questions to check first

State estate and inheritance taxes are separate from the federal estate tax and from income-tax consequences. Start with the current state treatment and source.

Tax on the estate

State estate tax

Illinois imposes a state estate tax. For persons dying on or after January 1, 2013, the Illinois exclusion amount is $4,000,000 under 35 ILCS 405/2; the attorney-general estate-tax instructions use the same $4,000,000 figure.

35 ILCS 405/2; Illinois Attorney General Estate Tax Instruction Fact Sheet.

Verified Jul 3, 2026 · Next review by Jul 3, 2027

Tax on beneficiaries

State inheritance tax

No current Illinois inheritance tax for current decedents. The Illinois Attorney General notes an Illinois Inheritance Tax Release may be necessary only if a decedent died before January 1, 1983.

Illinois Attorney General, Estate Taxes, Inheritance Tax Releases.

Verified Jul 3, 2026 · Next review by Jul 3, 2027

What changes the answer

The statewide rule is the starting point

  • Date of deathThresholds, rates, and repeal or phase-in rules are date-sensitive.
  • Domicile and property locationA state may treat residents and in-state property differently.
  • Beneficiary relationshipInheritance-tax treatment can depend on the recipient’s relationship to the decedent.
  • Federal and income-tax rulesFederal estate tax, basis, retirement accounts, and trust income remain separate analyses.

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This page reports source-linked state rules and review dates. It does not calculate a deadline, determine eligibility, select a procedure, value a claim, or apply law to an individual situation. Verify the cited authority, local procedure, and current law before relying on a rule.