Illinois is one of just a handful of states that double-taxes people when they die by imposing its own estate tax atop the federal estate tax.
Too often in Illinois, heirs to family farms need to sell that property in order to pay the estate tax on it.
When the owner of a farm dies, the land is taxed at a combined tax rate of up to 56 percent of the land’s value. The federal estate tax takes 40 percent and Illinois’ tax can range from 0.8 percent to 16 percent.
States have been trending away from death taxes, with recent repeals in Tennessee, Delaware and even New Jersey. Neighboring states of Wisconsin, Missouri, Michigan and Indiana don’t impose those taxes, and Indiana repealed its “death tax” in 2013.