Quick answers
Does Illinois have a state estate tax?
State estate tax: Yes (35 ILCS 405/2 (exclusion amount); 35 ILCS 405/3 (tax imposed)). Estate-tax exemption: $4,000,000 (35 ILCS 405/2 (exclusion amount); 35 ILCS 405/3 (tax imposed); 2026 deaths). Estate-tax top rate: 16% (35 ILCS 405/2 (exclusion amount); 35 ILCS 405/3 (tax imposed); 2026 deaths).
Does Illinois have an inheritance tax?
Inheritance tax: No (35 ILCS 405/2 (exclusion amount); 35 ILCS 405/3 (tax imposed)).
Can you use a transfer-on-death deed in Illinois?
Transfer-on-death deed for real estate: Available — Transfer on death instrument (755 ILCS 27/10 — applicability of the Real Property Transfer on Death Instrument Act; expanded to all real property eff. Jan. 1, 2022 (P.A. 102-0068)).
What is the Medicaid look-back period in Illinois?
Look-back period: 60 months (89 Illinois Administrative Code 120.388; Section 120.388 amended effective January 1, 2012).
Does Illinois tax Social Security benefits?
Social Security benefits: Exempt (2025 IL-1040 Form Instructions — Illinois Individual Income Tax; tax year 2025).
State estate tax
Estate-tax dataset 2026.v2
- State estate tax
- YesVerified
Source: 35 ILCS 405/2 (exclusion amount); 35 ILCS 405/3 (tax imposed) · Checked July 18, 2026
- Estate-tax exemption
- $4,000,000Verified
Source: 35 ILCS 405/2 (exclusion amount); 35 ILCS 405/3 (tax imposed) · Effective: 2026 deaths · Checked July 18, 2026
- Estate-tax filing threshold
- $4,000,000Verified
Source: 35 ILCS 405/2 (exclusion amount); 35 ILCS 405/3 (tax imposed) · Checked July 18, 2026
- Estate-tax top rate
- 16%Verified
Source: 35 ILCS 405/2 (exclusion amount); 35 ILCS 405/3 (tax imposed) · Effective: 2026 deaths · Checked July 18, 2026
Full detail: Illinois estate and inheritance tax page
Inheritance tax
Estate-tax dataset 2026.v2
- Inheritance tax
- NoVerified
Source: 35 ILCS 405/2 (exclusion amount); 35 ILCS 405/3 (tax imposed) · Checked July 18, 2026
Full detail: Illinois estate and inheritance tax page
Transfer-on-death deed
- Transfer-on-death deed for real estate
- Available — Transfer on death instrumentVerified
Source: 755 ILCS 27/10 — applicability of the Real Property Transfer on Death Instrument Act · Effective: expanded to all real property eff. Jan. 1, 2022 (P.A. 102-0068) · Checked July 26, 2026
- Controlling statute
- 755 ILCS 27Verified
Source: 755 ILCS 27/10 — applicability of the Real Property Transfer on Death Instrument Act · Effective: expanded to all real property eff. Jan. 1, 2022 (P.A. 102-0068) · Checked July 26, 2026
Full detail: Illinois transfer-on-death deed page
Small-estate procedure
- Current affidavit ceiling
- $150,000 personal estate; affidavit collectionVerified
Source: 755 ILCS 5/25-1 · Effective: P.A. 104-346, effective August 15, 2025 · Checked August 23, 2026
Full detail: Illinois small-estate procedure page
Medicaid long-term-care eligibility
Medicaid dataset 2026.v16
- Institutional income treatment
- No universal institutional income cap; medically needy spenddown and post-eligibility contribution rules apply.Verified
- Applies to: applicant whose income exceeds the applicable eligibility standard.
Source: 89 Illinois Administrative Code 120.61 · Effective: Amended effective July 23, 2025 · Checked September 5, 2026
- AABD medically needy resource limit
- $17,500Verified
- Applies to: single applicant.
Source: 89 Illinois Administrative Code 120.382 · Effective: Amended effective September 21, 2023 · Checked September 5, 2026
- Maximum community-spouse resource allowance
- $143,172Verified
- Applies to: institutionalized applicant with a community spouse.
Source: Illinois HFS Provider Notice: 2026 spousal-impoverishment standards · Effective: Effective January 1, 2026; issued January 22, 2026 · Checked September 5, 2026
- Base monthly maintenance-needs allowance
- Does not apply
- Applies to: Illinois uses its published maximum rather than a separate base allowance.
The primary-source authority cited for this cell establishes that the field does not apply.
Source: Illinois HFS Provider Notice: 2026 spousal-impoverishment standards · Effective: Effective January 1, 2026; issued January 22, 2026 · Checked September 5, 2026 · Ask the state agency
- Maximum monthly maintenance-needs allowance
- $4,066.50Verified
- Applies to: institutionalized applicant with a community spouse.
Source: Illinois HFS Provider Notice: 2026 spousal-impoverishment standards · Effective: Effective January 1, 2026; issued January 22, 2026 · Checked September 5, 2026
- Home-equity limit
- $752,000Verified
- Applies to: applicant subject to Illinois's federal-minimum election.
Source: 305 ILCS 5/3-1.2(e) · Also: CMS 2026 SSI and January spousal-impoverishment standards · Effective: Current Illinois Compiled Statutes; federal minimum home-equity standard incorporated by reference · Checked September 5, 2026
Full detail: Illinois Medicaid eligibility page
Medicaid look-back
Medicaid dataset 2026.v16
- Look-back period
- 60 monthsVerified
Source: 89 Illinois Administrative Code 120.388 · Effective: Section 120.388 amended effective January 1, 2012 · Checked September 5, 2026
- Transfer-penalty divisor
- The community's average monthly private-pay cost for nursing-facility services at the time the penalty is calculatedVerified
Source: 89 Illinois Administrative Code 120.388 · Effective: Section 120.388 amended effective January 1, 2012 · Checked September 5, 2026
- How the state administers the penalty
- Illinois divides the uncompensated value by the applicable community average monthly private-pay nursing-facility cost and applies the transfer penalty under the aggregation, start-date, and exception rules in 89 Ill. Adm. Code 120.388.Verified
Source: 89 Illinois Administrative Code 120.388 · Effective: Section 120.388 amended effective January 1, 2012 · Checked September 5, 2026
Full detail: Illinois Medicaid look-back page
Medicaid estate recovery
Medicaid dataset 2026.v16
- Recovery scope
- Recovery is generally against the probate estate. Expanded nonprobate interests are included only for a decedent whose qualified long-term-care policy caused assets to be disregarded.Verified
Source: 89 Illinois Administrative Code 102.210, 102.230, 102.235, 102.240, and 102.250 · Effective: Section 102.210 amended effective November 21, 2023; section 102.230 amended effective December 1, 2001; section 102.235 amended effective January 1, 1997; sections 102.240 and 102.250 amended effective December 28, 1993 · Checked September 5, 2026
- Controlling authority
- 305 ILCS 5/5-13 and 5-13.1 and 89 Ill. Adm. Code 102.200 through 102.250 govern estate claims, waivers, and liens.Verified
Source: 305 ILCS 5/5-13 and 5-13.1 · Also: 89 Illinois Administrative Code 102.210, 102.230, 102.235, 102.240, and 102.250 · Effective: Section 5-13.1 effective June 2, 2022 · Checked September 5, 2026
- Exemptions and deferrals
- Illinois does not enforce a medical-assistance claim while a surviving spouse, a child under 21, or a blind or permanently disabled adult child survives. For deaths on or after July 1, 2022, the first $25,000 of an estate is waived.Verified
Source: 89 Illinois Administrative Code 102.210, 102.230, 102.235, 102.240, and 102.250 · Effective: Section 102.210 amended effective November 21, 2023; section 102.230 amended effective December 1, 2001; section 102.235 amended effective January 1, 1997; sections 102.240 and 102.250 amended effective December 28, 1993 · Checked September 5, 2026
- Hardship waiver
- Illinois waives recovery when it is not cost-effective, would cause undue hardship, or for another just reason; the rules include a waiver where recovery would cause an heir or beneficiary to become or remain eligible for public benefits.Verified
Source: 305 ILCS 5/5-13 and 5-13.1 · Also: 89 Illinois Administrative Code 102.210, 102.230, 102.235, 102.240, and 102.250 · Effective: Section 5-13.1 effective June 2, 2022 · Checked September 5, 2026
- Lien practice
- Illinois may file a lien on real property of a permanently institutionalized recipient after notice and the required determination, subject to protected-resident rules; the administrative code governs filing, renewal, foreclosure, and release.Verified
Source: 89 Illinois Administrative Code 102.210, 102.230, 102.235, 102.240, and 102.250 · Effective: Section 102.210 amended effective November 21, 2023; section 102.230 amended effective December 1, 2001; section 102.235 amended effective January 1, 1997; sections 102.240 and 102.250 amended effective December 28, 1993 · Checked September 5, 2026
Full detail: Illinois Medicaid estate-recovery page
State income tax on retirement income
Retirement-income tax dataset 2026.v4
- Social Security benefits
- ExemptVerified
- Illinois subtracts the federally taxed portion of qualifying retirement income included in federal adjusted gross income. Social Security is expressly listed.
Source: 2025 IL-1040 Form Instructions — Illinois Individual Income Tax · Effective: tax year 2025 · Checked January 18, 2026
- Public pensions
- ExemptVerified
- Illinois subtracts the federally taxed portion of qualifying retirement income included in federal adjusted gross income. Government retirement plans are expressly listed.
- Only the qualifying federally taxed amount included in federal adjusted gross income is subtracted.
Source: 2025 IL-1040 Form Instructions — Illinois Individual Income Tax · Effective: tax year 2025 · Checked January 18, 2026
- Private pensions
- ExemptVerified
- Illinois subtracts the federally taxed portion of qualifying retirement income included in federal adjusted gross income. Qualified employee benefit plans under IRC sections 402 through 408 are expressly listed.
- Only the qualifying federally taxed amount included in federal adjusted gross income is subtracted.
Source: 2025 IL-1040 Form Instructions — Illinois Individual Income Tax · Effective: tax year 2025 · Checked January 18, 2026
- IRA and 401(k) distributions
- ExemptVerified
- Illinois subtracts the federally taxed portion of qualifying retirement income included in federal adjusted gross income. Qualified 401(k), IRA, and SEP retirement income is expressly listed.
- Only the qualifying federally taxed amount included in federal adjusted gross income is subtracted.
Source: 2025 IL-1040 Form Instructions — Illinois Individual Income Tax · Effective: tax year 2025 · Checked January 18, 2026
- Military retirement pay
- ExemptVerified
- Illinois subtracts the federally taxed portion of qualifying retirement income included in federal adjusted gross income. Military retirement plans are expressly listed.
- Only the qualifying federally taxed amount included in federal adjusted gross income is subtracted.
Source: 2025 IL-1040 Form Instructions — Illinois Individual Income Tax · Effective: tax year 2025 · Checked January 18, 2026
Full detail: Retirement-income tax dataset, all states (JSON)
About this page
This page assembles entries from datasets the site already publishes; it adds no figure of its own. Entries marked “Not yet verified” or “Pending” have no primary-source value in the underlying dataset yet. Rules change, so confirm anything you plan to act on with the source, the state agency, or a licensed attorney.