Do you have to pay taxes on inheritance in Illinois?
Henry Morales
Published Mar 25, 2026
An inheritance tax is imposed on someone who actually receives an inheritance. But there’s no federal or Illinois tax on inheritances. Illinoisans who inherit money or property, or receive it as a gift, are not taxed.
Are beneficiaries liable for IHT?
Executors are responsible for the administration of an estate after the death of an individual. Usually, IHT is payable on the deceased’s estate before assets are distributed to the beneficiaries. …
How much inheritance is tax free in Illinois?
While the federal estate tax only applies to estates valued at $11.7 million or more, the Illinois estate tax applies to estates valued at $4 million or more. Thus, many estates that are not subject to federal estate tax are nevertheless subject to Illinois estate tax.
How is inheritance taxed in the state of Illinois?
Inheritance tax is when inheritance received by the beneficiary or heir of a deceased person’s estate is counted as income for the purpose of calculating the beneficiary’s or heir’s income taxes for the year in which the inheritance is received. Does Illinois Have an Inheritance Tax?
When do you have to pay taxes on an inheritance?
Besides the state estate and inheritance taxes, you need to look out for the following: Final individual federal and state income tax returns –Federal tax returns are due by Tax Day of the year following the individual’s death. State tax returns and payment are due nine months after the death of the estate owner.
When do you have to pay Illinois estate tax?
State tax returns and payment are due nine months after the death of the estate owner. You can request an extension of time to file the Illinois estate tax return and related forms and to pay any tax due, but you will end up accruing intereston the amount of tax you owe during the extension period.
Are there any states that do not pay inheritance taxes?
As of 2016, only six states (Iowa, Kentucky, Pennsylvania, Maryland, Nebraska, and New Jersey) impose an inheritance tax. Fortunately, residents of the State of Illinois do not pay inheritance taxes.
