IL HB2368

Establishes a new $4,000,000 exemption amount for Illinois estate and generation-skipping transfer taxes for persons dying on or after January 1, 2026

Creates a graduated Illinois estate tax rate structure: 5% on taxable estates up to $6 million, 10% on estates between $6-16 million, 16% on estates between $16-21 million, and 22% on estates exceeding $21 million

Redefines "Illinois taxable estate" as the federal gross estate minus the $4 million exemption and allowable deductions, plus the value of taxable gifts made within 3 years of death

Applies the same graduated tax rate structure (5%-22%) to the Illinois generation-skipping transfer tax for transfers occurring on or after January 1, 2026

Takes effect immediately upon becoming law