4. Illinois

• Estate tax: Yes
• Estate tax rates: 0.8%-16%
• Estate tax exemption level: $4 million

According to many sources, Illinois turns out to be one of the least tax-friendly states in the US for retirees, so if you live here and you’re in your golden years, chances are the taxes may be a financial burden for you.

So yes, Illinois also has a death tax, which is graduated and goes up to 16%. However, it only applies to estates worth more than $4 million (the threshold must include the adjusted taxable gifts). At least the exemption amount isn’t too frightening. It also isn’t adjusted annually for inflation.