Pennsylvania Inheritance Tax Rates

This short article concentrates only on Pennsylvania Inheritance tax rates. We welcome you to read the several other articles available free on this website. Our deepest sympathies extend to anyone who has recently lost a loved one. Things may be troubling enough right now, so do not hesitate to call us for a free consultation or send a message through our website. 

For additional information and further reading about Probate, Inheritance Taxes and more for all 50 states, visit our friends at: https://probatestars.com/ 

Pennsylvania Inheritance Tax is calculated based on the “net” value of the estate. First the “gross” value of the estate is determined. This includes adding up the value of all assets, cash, real estate and personal property. All allowable debts and expenses are deducted from the gross amount to calculate the “net estate” that is subject to tax.

The dollar amount of Pennsylvania Inheritance Tax to be paid depends on the  relationship between the deceased person and the person receiving any money or asset (“beneficiary” or “heir”). It is common for the dollar amounts due on some estate assets to be greater or lesser than others, again depending upon the asset and the relationship of decedent to the beneficiary. As of this writing the Pennsylvania Inheritance Tax rates are as follows: 

0% Tax Rate

Assets transferring to a surviving spouse, to the government, or transfers to certain non-profit charities (501(c)(3) corporations) are exempt from Pennsylvania Inheritance tax.  Assets that transfer to a parent of a deceased child (under age 21 at the time of death) are also exempt.

4.5% Tax Rate 

This rate applies to transfers from parent to child, grandparent to a grandchild or from a child (over the age of 21) to a parent. “Child” can mean stepchildren and adopted children of the deceased persons. 

12% Tax Rate

This rate applies to transfers from brother and sisters (siblings) of the deceased person. It may include half-siblings but not stepsiblings.

15% Tax Rate 

The highest rate of 15% applies to transfers to anyone who is not in the above categories (spouse, lineal descendants/ascendants or siblings). This rate bracket would include transfers to aunts/uncles, nieces/nephews, stepbrothers/sisters, friends or other acquaintances.  

The due date for Pennsylvania Inheritance Tax is nine (9) months of the date of death. A properly completed Pennsylvania Inheritance Tax Return is usually submitted with payment. The tax return sets forth the assets of the estate, schedules of assets, expenses, allowable deductions and the amount subject to tax. A five percent (5%) discount is available if payment is made within ninety (90) days of the date of death. 

The Federal Estate Tax only applies to larger estates with value in the millions of dollars. As of this writing, the federal estate tax excludes up to $23.4 million for married couples, and $11.7 million for individuals. Therefore, unless the decedent passed away with quite a bit of wealth, there is no need to worry about the Federal Estate Tax. 

Pennsylvania Inheritance Tax rates are very fact sensitive. We welcome you to read the several other articles on this topic available free on this website. Better yet, call us for a free consultation at 1-800-755-0245 or send an instant message through our website: http://www.puzaklaw.com. We look forward to helping you through this challenging time. 

For additional information and further reading about Probate, Inheritance Taxes and more for all 50 states, visit our friends at: https://probatestars.com/ 

IMPORTANT: Every case is unique in its facts and circumstances. This article is for general information purposes and is not intended as legal advice for any particular case. We recommend consultation with a lawyer of your choice who can perform a thorough analysis of your situation and the particular rights and remedies that may apply.

©David J. Puzak, Puzak Law Offices, LLC