Thinking about what happens to your estate after you're gone isn’t easy—but it’s important. One question we hear a lot is:
“Will my estate owe taxes in Illinois?”
If you live in Illinois and your estate is worth more than $4 million, the answer might be yes. But don’t panic—we’ve put together a simple calculator to help you estimate what that could look like. Let’s walk through how it works and what you should know.
While the federal government only taxes estates over $13 million, Illinois sets the bar lower. Here, estates over $4 million might be taxed by the state.
And unlike the federal estate tax, where only the amount above the exemption gets taxed, Illinois takes a different approach. Once your estate crosses that $4 million line, the whole estate can be subject to tax.
The rate goes up depending on how big your estate is—anywhere from around 7% to 16%.
Our Illinois Estate Tax Calculator is designed to make things easy. You plug in a few numbers, and we’ll give you a ballpark estimate of what the estate tax might be. It’s not a replacement for personalized advice, but it’s a great way to get started.
Total Estate Value
This is everything the person owned at the time they passed: house, cars, savings, retirement accounts, stocks, life insurance (if it pays out to the estate), and even personal belongings.
Debts & Liabilities
Think mortgages, medical bills, credit cards—anything the estate still owes. These get subtracted from the total estate value.
Charitable Contributions
If the estate is donating to a qualified charity, that amount can reduce the taxable portion. Enter any charitable gifts here.
Spouse Transfers
Anything left to a surviving spouse is tax-free in Illinois. If part of the estate is going to a spouse, list that here too.
Once you plug in all your numbers, the calculator gives you an estimate of how much Illinois estate tax might be due. If the estate is under $4 million, it’ll let you know that no tax is expected. If it’s over, you’ll see a rough number based on current state tax rates.
This tool is just an estimate. Illinois uses a detailed tax bracket system, and the actual tax bill can vary depending on the structure of the estate.
Also, some assets (like out-of-state property or trusts) can change how taxes apply. If your situation is more complex, it's a good idea to talk to a professional.
Estate taxes can come as a surprise to families—especially since Illinois kicks in at $4 million, not $13 million like the federal level. But with a little planning, it’s possible to lower (or even avoid) what your estate might owe.
That might mean setting up trusts, giving away assets while you're alive, or supporting causes you care about through charitable donations.
Not sure where to start? You don’t have to figure it out alone. Reach out to O’Flaherty Law and let’s talk through your goals. We’ll help you understand your options and build a plan that protects what you’ve worked so hard to build.
Whether you’re planning for the future or handling a loved one’s estate, we’re here when you need us.
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