Bill > HB2368

This bill amends the Illinois Estate and Generation-Skipping Transfer Tax Act to update how estate taxes are calculated for persons dying on or after January 1, 2026. The bill establishes a new $4,000,000 exemption amount and creates a graduated tax rate structure for estate taxes: 5% for estates up to $6 million, 10% for estates between $6-16 million, 16% for estates between $16-21 million, and 22% for estates over $21 million. The bill defines "Illinois taxable estate" as the decedent's federal gross estate with specific modifications, including deducting the $4,000,000 exemption amount and certain other deductions. It also applies a similar graduated tax rate structure to generation-skipping transfer taxes, which are taxes on transfers to grandchildren or more remote descendants that typically would skip a generation. The changes aim to create a more nuanced and progressive estate tax system in Illinois, with clear tax rates based on the value of the estate and a significant exemption for smaller estates.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2368&GAID=18&DocTypeID=HB&SessionID=114&GA=104