Illinois Estate Tax: Threshold & Rates

The state's own Attorney General says this tax isn't computed by hand — here's what that actually means, and the verified numbers it produces.

35 ILCS 405; Illinois AG Estate Tax Fact Sheet

Quick answer: exclusion of $4,000,000, with a genuine cliff above it — but the exact dollar amount above the exclusion comes from an "interrelated calculation," not a table you can read off. Get a calibrated estimate in the Illinois estate tax calculator.

Why the state built its own calculator instead of a table

Confirmed current, straight from the Attorney General's own fact sheet: "The Illinois Estate Tax will be determined using an interrelated calculation. The calculator at the Illinois Attorney General's website... may be used for this computation," rather than "the preparer performing numerous trials to obtain a figure". The tax is tied to the old federal state death tax credit table (IRC §2011 as it stood on December 31, 2001), but the Illinois computation feeds back on itself in a way that a fixed rate table can't capture — which is exactly why the state provides a dedicated online tool.

The verified official examples

The AG's own fact sheet publishes exact reference points, reproduced here directly: a $4,000,000 estate (all Illinois property) owes $0. A $5,000,000 estate (all Illinois property) owes $285,714. The same $5,000,000 estate, split 50% Illinois and 50% Florida, owes exactly half — $142,857 — confirming the apportionment method described below.

How multi-state estates get apportioned

For both resident and nonresident decedents, a preliminary tax is calculated first assuming all assets sit in Illinois. That figure is then multiplied by the ratio of Illinois-situs assets to total assets to reach the final apportioned tax — exactly what the 50/50 Illinois-Florida example demonstrates, cutting the tax precisely in half.

Filed with the Attorney General, paid to the Treasurer

Unusually among the states, Illinois's estate tax is administered by the Attorney General's office rather than a department of revenue. Form 700 is filed with the AG's office (in Chicago or Springfield, depending on county), while the tax itself is paid directly to the Illinois State Treasurer.

Facing probate in Illinois?

A local probate attorney can review your estate — many offer a free consultation.

Talk to an Illinois attorney

The return is due 9 months after death, matching the federal deadline, with extensions available through the Attorney General's office.

Threshold & rates — frequently asked questions

Why can't Illinois estate tax be looked up in a simple rate table?

The tax is tied to the old federal state death tax credit table (IRC §2011 as of December 31, 2001), but computed through what the Attorney General's own guidance calls an interrelated calculation — one that converges only through repeated trial computations, which is why the AG's office built its own online calculator rather than publishing a simple lookup table.

What official examples has the Attorney General published?

A $4,000,000 estate (all Illinois property) owes $0. A $5,000,000 estate (all Illinois property) owes $285,714. The same $5,000,000 estate split 50% Illinois / 50% Florida owes exactly half, $142,857.

How does Illinois apportion tax for a nonresident or multi-state estate?

A preliminary tax is calculated assuming all assets are located in Illinois, then that figure is multiplied by the ratio of Illinois-situs assets to total assets, exactly as the 50/50 Illinois-Florida example demonstrates.

Who actually administers this tax?

Unusually, the Illinois Attorney General's office, not the Department of Revenue — Form 700 is filed with the Attorney General, while payment itself goes to the Illinois State Treasurer.

This page provides general guidance only and is not legal or tax advice. Based on 35 ILCS 405 and the Illinois Attorney General's Estate Tax Instruction Fact Sheet. Confirm the exact figure with the Illinois Attorney General's official calculator or a licensed attorney before acting.