Illinois Estate Tax

For persons dying last year, the federal exemption for Federal Estate Tax purposes is $12,920,000. The exclusion amount for Illinois Estate Tax purposes is $4,000,000. The exclusion amount is a taxable threshold and not a credit against tax. If an estate’s gross value exceeds $4,000,000 after inclusion of adjusted taxable gifts, an Illinois Form 700 (updated annually) must be filed, whether or not a Federal Return is required by the Internal Revenue Service. The estate representative should prepare and submit the Illinois Form 700 with a Federal Form 706, including all schedules, appraisals, wills, trusts, attachments, etc. If an estate is not federally taxable and does not wish to submit a Form 706, the information may be presented in an alternate format as long as all necessary information is included. (See Ill. Admin. Code tit. 86, § 2000.110). The Illinois Estate Tax will be determined using an interrelated calculation for 2023 decedents. The calculator at the Illinois Attorney General’s website (www.illinoisattorneygeneral.gov) may be used for this computation. To determine tax due, insert the amounts from Lines 3 and 5 of Schedule A or B, Form 700. Please note that the calculator will not perform the computation unless amounts are entered into both fields.

For both resident and non-resident decedents, a preliminary tax amount should be calculated assuming all assets are located within Illinois. (Line 6, Schedule A or B, Form 700). The apportioned tax can then be determined by multiplying that figure by the ratio of Illinois assets to total assets.

For decedents dying in years prior, see the Instruction Fact Sheets previously posted on the Attorney General’s website covering the specific year of death.

Illinois Estate Tax

Credit: 2023 Important Notice Regarding Illinois Estate Tax and Fact Sheet