Bill > SB2038

This bill amends the Illinois Estate and Generation-Skipping Transfer Tax Act to change how estate taxes are calculated for persons dying on or after January 1, 2026. The bill establishes a new method for computing estate taxes by introducing an exemption amount of $4,000,000 and creating a graduated tax rate structure based on the size of the taxable estate. For estates valued at $6,000,000 or less, the tax rate will be 5%; for estates between $6,000,000 and $16,000,000, the rate will be 10%; for estates between $16,000,000 and $21,000,000, the rate will be 16%; and for estates exceeding $21,000,000, the rate will be 22%. The "Illinois taxable estate" is defined as the decedent's federal gross estate, subject to specific modifications such as deductions for certain gifts and adjustments. The bill also makes similar changes to the generation-skipping transfer tax, applying the same graduated rate structure to transfers that exceed the $4,000,000 exemption amount. These changes aim to provide a more nuanced and progressive approach to estate taxation in Illinois, with no tax due if the decedent's Illinois taxable estate is not greater than zero.

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2038&GAID=18&DocTypeID=SB&SessionID=114&GA=104