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Total value of all assets (real estate, investments, accounts, business interests)
Enter estate value
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Assets passing to surviving US citizen spouse (unlimited deduction)
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Bequests to qualifying charities
Illinois Estate Tax Owed
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⚖️ Disclaimer: This calculator provides an educational estimate only. Illinois estate tax law is complex. Consult a licensed Illinois estate planning attorney or CPA for estate-specific advice.
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Illinois Estate Tax — What You Need to Know
Illinois is one of only 12 states that impose a separate state estate tax, with a very low exemption threshold of $4 million (compared to the federal exemption of $13.61 million in 2024). This means Illinois residents with estates as small as $4 million must file an Illinois estate tax return, even if they owe no federal estate tax.
Illinois Estate Tax Rates (2025)
IL Estate Tax = Tax on Taxable Estate per Rate Schedule − IL Applicable Credit
Illinois Exemption: $4,000,000 (not indexed for inflation)
Illinois Estate Tax Rates: 0.8% – 16% (graduated schedule on taxable estate)
Top Rate of 16%: Applies to taxable estates over $10.04 million
Key Note: Illinois has NO portability — unused exemption does NOT transfer to surviving spouse
Illinois Estate Tax Rates: 0.8% – 16% (graduated schedule on taxable estate)
Top Rate of 16%: Applies to taxable estates over $10.04 million
Key Note: Illinois has NO portability — unused exemption does NOT transfer to surviving spouse
Illinois Estate Tax Rate Schedule
- $0 – $40,000: 0.8%
- $40,001 – $90,000: 1.6%
- $90,001 – $140,000: 2.4%
- $140,001 – $240,000: 3.2%
- $240,001 – $440,000: 4.0%
- $440,001 – $640,000: 4.8%
- $640,001 – $840,000: 5.6%
- $840,001 – $1,040,000: 6.4%
- $1,040,001 – $1,540,000: 7.2%
- $1,540,001 – $2,040,000: 8.0%
- $2,040,001 – $2,540,000: 8.8%
- $2,540,001 – $3,040,000: 9.6%
- $3,040,001 – $3,540,000: 10.4%
- $3,540,001 – $4,040,000: 11.2%
- $4,040,001 – $5,040,000: 12.0%
- $5,040,001 – $6,040,000: 12.8%
- $6,040,001 – $7,040,000: 13.6%
- $7,040,001 – $8,040,000: 14.4%
- $8,040,001 – $9,040,000: 15.2%
- Over $10,040,000: 16.0%
⚠️ No Portability in Illinois: Unlike the federal estate tax, Illinois does NOT allow unused exemption to transfer to a surviving spouse. Without proper planning (e.g., bypass/credit shelter trusts), a married couple could lose one $4M exemption at first death, subjecting the survivor's estate to Illinois estate tax at a much lower threshold.
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Frequently Asked Questions
What is the Illinois estate tax exemption for 2025?
The Illinois estate tax exemption is $4,000,000 for 2025, unchanged since 2012. Illinois has not indexed its exemption for inflation, unlike the federal estate tax. This means more Illinois residents are subject to state estate tax each year as asset values rise. Estates with a net taxable value over $4 million must file Form 700 (Illinois Estate Tax Return) and pay tax on the amount above the exemption.
Does Illinois have an estate tax or inheritance tax?
Illinois has an estate tax only — not an inheritance tax. Estate tax is levied on the total value of the deceased person's estate before distribution to heirs. Inheritance tax is levied on the recipients based on what they receive (Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania have inheritance taxes). Illinois heirs do not pay a separate Illinois inheritance tax.
What assets are included in the Illinois estate tax?
Illinois estate tax includes: real property located in Illinois, all personal property (bank accounts, investments, retirement accounts, business interests, life insurance owned by the deceased), vehicles, jewelry, and art. Life insurance proceeds are typically included in the taxable estate unless held in an Irrevocable Life Insurance Trust (ILIT). Illinois also taxes non-residents on Illinois-sited property like Illinois real estate.
How can I reduce Illinois estate tax?
Common Illinois estate tax reduction strategies: (1) Marital bypass/credit shelter trusts — use both spouses' $4M exemptions; (2) Irrevocable Life Insurance Trust (ILIT) — removes life insurance from taxable estate; (3) Annual gifting — gift up to $18,000/person/year (2024 limit) tax-free; (4) Charitable remainder trusts and charitable lead trusts; (5) Family Limited Partnerships (FLPs) — valuation discounts on business interests; (6) Move out of Illinois — relocating domicile before death can eliminate IL estate tax.
When is the Illinois estate tax return due?
The Illinois estate tax return (Form 700) is due 9 months after the date of death. An automatic 6-month extension (to 15 months total) is available by filing Form 700-V and paying the estimated tax owed. Interest accrues on unpaid tax from 9 months after death. Penalty of 5% per month applies for failure to file (maximum 25%). The estate cannot be distributed until the estate tax lien is released.
What is the difference between Illinois and federal estate tax?
Key differences: Illinois exemption is $4M vs. federal $13.61M (2024); Illinois rates are 0.8%–16% vs. federal flat 40%; Illinois has NO portability (can't transfer unused exemption to spouse) while the federal tax does; Illinois taxes all estates over $4M regardless of federal tax liability; some estates owe IL estate tax but no federal tax. Illinois estate tax is deductible on the federal estate tax return.