What is the Pennsylvania Inheritance Tax?

by Long & Long
Preserving wealth often requires minimizing taxes whenever possible. Greensburg wealth preservation attorneys can help you with estate planning that uniquely addresses the issues involved with your estate.

While Pennsylvania currently does not have a state estate tax, it is one of six states that have an inheritance tax. The Pennsylvania inheritance tax is a tax that beneficiaries of an estate must pay based on a percentage of their inheritance’s value. Wills, intestacy succession and other transfers by operation of law pass inheritances to the heirs or beneficiaries. The person's relationship to the deceased is also a factor in determining the inheritance tax owed.

Pennsylvania inheritance tax rates are:
  • 0 percent for transfers to a living spouse or parent from a child who is age 21 or younger
  • 4.5 percent on transfers to direct descendants and lineal heirs (children, grandchildren, great grandchildren)
  • 12 percent on transfers to siblings
  • 15 percent on transfers to other heirs (not including charitable organizations, exempt institutions and government entities exempt from tax)
Jointly owned property between husbands and wives are exempt from inheritance taxes. Inheritance tax becomes due on the date of the decedent's death, and nine months past the death date the tax becomes delinquent. When heirs pay the tax within three months of the decedent's death, they receive a five percent discount.

Murrysville tax planning attorneys can help you with estate planning that minimizes taxation for your heirs.

Long & Long, LLC has worked with clients for more than 50 years, helping them with wealth preservation, tax planning and other legal issues.