Dixon died of heart failure on January 29, 1992, in Burbank, California, and was buried in Burr Oak Cemetery, in Alsip, Illinois. After his death, his widow, Marie Dixon, took over the Blues Heaven Foundation and moved the headquarters to Chess Records. Dixon was posthumously inducted into the Rock and Roll Hall of Fame in the category Early Influences (pre-rock) in 1994. On April 28, 2013, both Dixon and his grandson Alex Dixon were inducted into the Chicago Blues Hall of Fame.