Illinois Gift Tax Guide (2026)
Everything you need to know about gift tax, estate tax, and inheritance tax in Illinois.
Illinois Tax Overview
Illinois has an estate tax with a $4M exemption but no separate gift or inheritance tax.
Federal Gift Tax in Illinois
Regardless of Illinois's state tax laws, the federal gift tax applies uniformly. For 2026:
You can give up to $19,000 per person per year without any gift tax consequences. Gifts exceeding this amount count against your $15,000,000 lifetime exemption and require Form 709 filing.
Gift Tax Planning Tips for Illinois Residents
Use the annual exclusion to make tax-free gifts to family members each year
Pay tuition and medical bills directly to institutions for unlimited tax-free transfers
Consider gift splitting if married to double your annual exclusion
Consult with a local estate planning attorney about state-specific considerations
Be aware of Illinois's estate tax when planning lifetime gifts