IL risk area
Tax exposure in Illinois
State estate or inheritance tax rules and how they interact with federal thresholds.
Illinois imposes a state estate tax with a $4,000,000 exclusion amount and requires Form 700 filings for estates above that threshold.
Does the state impose an estate or inheritance tax?Who is exempt or receives preferential treatment?How does federal tax interact with state rules?
At a glance
Key takeaways
- The Illinois estate tax exclusion amount is $4,000,000.
- An Illinois Form 700 is required when the gross estate (including adjusted taxable gifts) exceeds the exclusion amount.
- Illinois estate tax is due nine months after the date of death; extensions are available.
- State estate tax thresholds are separate from the federal exemption and can be lower; confirm current exclusion and filing requirements.
Questions to consider
Questions this risk area helps you evaluate in Illinois
- Does the state impose an estate or inheritance tax?
- Who is exempt or receives preferential treatment?
- How does federal tax interact with state rules?
State overview
Illinois imposes a state estate tax with a $4,000,000 exclusion amount and requires Form 700 filings for estates above that threshold.
- The Illinois estate tax exclusion amount is $4,000,000.
- An Illinois Form 700 is required when the gross estate (including adjusted taxable gifts) exceeds the exclusion amount.
- Illinois estate tax is due nine months after the date of death; extensions are available.
- State estate tax thresholds are separate from the federal exemption and can be lower; confirm current exclusion and filing requirements.
Sources
- https://www.illinoisattorneygeneral.gov/estate-taxes/
- https://www.illinoisattorneygeneral.gov/Page-Attachments/EstateTaxInstructionFactSheet.pdf
- https://taxfoundation.org/data/all/state/estate-inheritance-taxes/
Risk sources
- IRS inflation adjustments for tax year 2026
Use for the current federal estate tax basic exclusion amount.
- IRS Instructions for Form 706 (United States Estate Tax Return)
Defines filing requirements and federal estate tax framework.
- Tax Foundation - State estate and inheritance taxes
Current list of states with estate or inheritance taxes.
National sources provide baseline context; state statutes and court rules control in Illinois.