Family · Inheritance tax
Does Pennsylvania Have an Inheritance Tax?
Whether Pennsylvania taxes what an heir inherits, who has to pay, the rates by relationship, and who is exempt. Inheritance tax is separate from any estate tax. Cited to the statute.
How the inheritance tax works in Pennsylvania
Who pays, how the rate tracks the relationship to the person who died, and the heirs the law exempts.
| How the tax works | What it means |
|---|---|
| The heir pays, by relationship class | Pennsylvania taxes the share each heir receives, and the rate turns on the relationship to the person who died. Under 72 P.S. Sec. 9116 the rate is 0% for a surviving spouse, 4.5% for lineal descendants and ascendants such as children, grandchildren, and parents, 12% for siblings, and 15% for all other heirs. |
| Applies to any size inheritance | There is no minimum estate value. The tax is charged on the value of the property passing to a taxable heir, so a small bequest to a niece or a friend is taxed at 15% the same as a large one. |
| When and how it is paid | The tax is due at death and becomes delinquent nine months after the date of death. Paying within three months of death earns a 5% discount on the tax due. |
| Who is exempt | What it means |
|---|---|
| Spouses pay nothing | Transfers to a surviving spouse are taxed at 0%. Property owned jointly by spouses passes to the survivor free of Pennsylvania inheritance tax. |
| Children age 21 and under | Transfers from a parent to a child aged 21 or younger are taxed at 0%. This is a narrow carve-out from the usual 4.5% lineal rate. |
| Life insurance and charities | Life insurance proceeds paid on the death of the insured are exempt under 72 P.S. Sec. 9111, and transfers to charities, exempt institutions, and government bodies are not taxed. |
What you can do right now
Concrete, neutral steps if you may owe or receive an inheritance in Pennsylvania. This is general information, not tax or legal advice.
- Identify each heir’s relationship class
Sort each beneficiary into spouse (0%), lineal such as children and grandchildren (4.5%), sibling (12%), or other (15%). The class sets the rate on that person’s share.
- File the REV-1500 return
Pennsylvania inheritance tax is reported on Form REV-1500, filed with the Register of Wills in the county where the person lived. The return is due within nine months of death.
- Pay early for the discount
If you can pay within three months of the death, you receive a 5% discount on the tax owed. Weigh that against the nine-month deadline.
- Confirm exemptions before you pay
Check whether a transfer qualifies for the spousal 0% rate, the child-age-21 rate, or the life-insurance exemption before calculating what is due. When in doubt, ask the Department of Revenue or a probate attorney.
Inheritance tax turns on the exact relationship and the value received. The state department of revenue publishes the forms and can point you to the current rate schedule.
→ Pennsylvania Department of Revenue: Inheritance TaxThis is general information, not tax or legal advice. Rates and exemptions change and turn on the relationship, so confirm your situation against the statute or with the state revenue office.
What people in Pennsylvania get wrong about inheritance tax
Pennsylvania is one of the few states that levies an inheritance tax, and the key point is who pays it and why. The tax falls on the heir, not on the estate, and the rate is set by how the heir was related to the person who died. Under 72 P.S. Sec. 9116, a surviving spouse pays 0%, children and other lineal family such as grandchildren and parents pay 4.5%, siblings pay 12%, and everyone else, including nieces, nephews, cousins, and friends, pays 15%. There is no minimum, so even a modest gift to a friend is taxed. A parent leaving property to a child aged 21 or younger pays 0%, and life insurance proceeds and gifts to charities are exempt. The tax is due at death and delinquent after nine months, with a 5% discount for paying within three months. Keep this separate from the federal estate tax, which the estate pays and only very large estates owe. Pennsylvania has no separate state estate tax of its own.
Common questions
Does Pennsylvania have an inheritance tax?
Yes. Pennsylvania levies an inheritance tax that the heir pays. Under 72 P.S. Sec. 9116 the rate is 0% for a spouse, 4.5% for children and other lineal family, 12% for siblings, and 15% for all other heirs.
Who is exempt from Pennsylvania inheritance tax?
A surviving spouse pays 0%, and a parent leaving property to a child aged 21 or younger pays 0%. Life insurance proceeds, and transfers to charities and government bodies, are also exempt.
What is the Pennsylvania inheritance tax rate for children?
Children and other lineal descendants and ascendants are taxed at 4.5%. Siblings pay 12%, and unrelated heirs pay 15%.
Is inheritance tax the same as estate tax in Pennsylvania?
No. The inheritance tax is paid by the heir based on relationship. An estate tax is paid by the estate. Pennsylvania has an inheritance tax but no separate state estate tax, and the federal estate tax only reaches very large estates.
When is Pennsylvania inheritance tax due?
It is due at the date of death and becomes delinquent nine months later. Paying within three months of death earns a 5% discount on the amount owed.
Not legal advicePlainStatute provides plain-language summaries of public law for general information only. This is not legal advice. Statutes change; always confirm current requirements with the official source linked above before acting.