Understanding ILLINOIS ESTATE TAX

Illinois charges a "death tax" to an estate when the gross estate of the person who died is over $4 million at the time of death. The tax rate is at a graduated and top rate of 16%. 

The tax must be paid first before heirs receive anything from the estate. Below is a chart to help navigate the amount of tax that may be owed. There are always avenues to explore with estate planning tools to try and reduce this amount and avoid paying state estate taxes. 

*The taxable estate is the total above the 2025 exemption of $4 million.
**The rate threshold is the point at which the marginal estate tax rate goes into effect.

Note: The chart below shows no taxes owed on the first $40,000 of taxable income because of a system of tax credits from the state