What Is the Inheritance Tax in PA? Calculator & Updated Rates

ByDave
INHERI TANCE R.I.P.
Pennsylvania inheritance tax ranges from 0% to 15%, depending on the beneficiary’s relationship to the deceased. Surviving spouses pay 0%, children and other direct descendants generally pay 4.5%, siblings pay 12%, and most other beneficiaries pay 15%. Tax is generally due within nine months of death.

Pennsylvania has a state inheritance tax that can apply when you receive money, property, or other assets from someone who has died.

The rate depends on your relationship to the deceased, ranging from 0% for a surviving spouse to 15% for many unrelated beneficiaries.

But not everything inherited is taxable. Certain transfers to charities are exempt, life insurance proceeds paid to named beneficiaries are generally exempt, and qualifying family farms and family-owned businesses may receive special treatment.

Pennsylvania Inheritance Tax Calculator (2026 Rates)

Do You Inherit Your Parents’ Debt When They Die?

Worried about being left with a parent’s unpaid bills? Find out which debts generally stay with the estate, when you could be personally responsible, and what to know before paying a debt collector.

Know Which Debts You Owe

How Much Is Pennsylvania’s Inheritance Tax?

The rate of Pennsylvania’s Inheritance Tax depends primarily on your relationship to the person who died.

Who inherits? Examples Tax rate
Surviving spouse Husband or wife 0%
Young child (21 or younger) Child inherits from a natural, adoptive, or stepparent 0%
Close family Children age 22+, grandchildren, parents, grandparents 4.5%
Sibling Brother or sister, full or half 12%
Other heirs Nieces, nephews, aunts, uncles, friends, unrelated people 15%
Charities & exempt organizations Qualifying charities, religious or educational institutions, government entities 0% (exempt)

These rates generally apply to the taxable amount transferred to each beneficiary, after accounting for applicable exemptions and deductions.

Inheritance Tax Guide

When Do You Have to Pay Inheritance Tax?

Find out when inheritance tax may be due, which states impose it, and how your relationship to the person who died can affect what you owe.

Check When Tax Is Due

What Property Is Subject to Pennsylvania Inheritance Tax?

Pennsylvania can tax certain assets that transfer directly to beneficiaries, including some jointly owned property and retirement accounts.

Again, apart from the asset, the location of the property and whether the deceased was a Pennsylvania resident can also affect the tax.

Property Type Is It Taxable? Rule
Real estate Yes Pennsylvania property is taxable, even if the owner lived elsewhere.
Personal belongings Yes Cars, jewelry, furniture, and other physical property located in PA are taxable.
Financial assets Depends Stocks, bank accounts, and other intangible assets are taxable anywhere if the owner lived in PA.
Jointly owned assets Usually Generally, the deceased owner’s share is taxable. Spouses’ jointly owned property is generally exempt.
Life insurance Usually no Proceeds paid to a named beneficiary are generally exempt.
Retirement accounts Depends IRAs and some other retirement benefits are taxable under specific rules.
Gifts within 1 year of death Often Certain gifts are included, with a $3,000 exclusion per recipient per calendar year.
Property outside PA Depends Out-of-state real estate and physical property are generally excluded; a PA resident’s intangible assets are generally taxable wherever held.

Which Pennsylvania Inheritance Tax Exemptions and Deductions Apply?

Pennsylvania generally taxes transfers to beneficiaries at different rates based on their relationship to the deceased.

1. Transfers to a surviving spouse

Transfers to a surviving spouse are subject to a 0% inheritance tax rate.

This means a spouse can generally inherit taxable property from the deceased without owing Pennsylvania inheritance tax on that transfer.

2. Transfers to charities and exempt institutions

  • Qualifying charitable organizations
  • Educational institutions
  • Religious organizations
  • Hospitals, and
  • Government entities can receive property without Pennsylvania inheritance tax.

The organization must meet the applicable exemption requirements. It is not enough to assume that every organization described as charitable automatically qualifies.

3. The $3,500 family exemption

Pennsylvania allows a $3,500 family exemption for qualifying Class A transfers.

For example, if an eligible adult child inherits $50,000 and the full $3,500 exemption applies to that transfer, the taxable amount would be reduced to $46,500. At the 4.5% rate, that would produce an inheritance tax of $2,092.50.

4. Family farms and agricultural property

Pennsylvania has special provisions that can exempt qualifying agricultural property from inheritance tax.

It is designed to help families continue operating agricultural businesses rather than having to sell land or other assets to cover tax liabilities.

But the property must meet the state’s requirements, which can include continued family ownership and agricultural use for a specified period.

5. Family-owned businesses

Certain closely held family businesses may also qualify for an inheritance-tax exemption.

Requirements involving

  • Number of full-time employees,
  • Value of business assets
  • Length of time the business has existed, and
  • Continued family ownership after the transfer.

6. Estate debts and administration expenses

Pennsylvania allows certain debts and expenses to be deducted before the inheritance tax is calculated.

These may include

  • Funeral expenses
  • Estate administration costs
  • Attorney fees
  • Court costs
  • Appraisal fees
  • Debts the deceased owed at death.

The expenses must be documented and claimed according to the return instructions.

Inheritance Tax Guide

Is a Cash Inheritance Taxable?

Find out whether you owe taxes on inherited cash, which rules may apply, and what to check before filing.

Check Inheritance Tax Rules

How to File a Pennsylvania Inheritance Tax Return

So, who actually files the return, and when does the tax need to be paid?

1505624105
R
pennsylvaniaDEPARTMENT OF REVENUE
REV-1500
INHERITANCE TAX RETURN
RESIDENT DECEDENT
OFFICIAL USE ONLY
County Code
Year
File Number
(EX) MOD 08-24 (FI)
ENTER DECEDENT INFORMATION BELOW
Social Security Number
XXX-XX-7342
Decedent’s SSN
Date of Death MMDDYYYY
08142026
Date of death
Date of Birth MMDDYYYY
03111948
Decedent’s Last Name
Hill
Decedent’s name
Suffix
Jr.
Decedent’s First Name
Wyeth
MI
A
(If Applicable) Enter Surviving Spouse’s Information Below
Spouse’s Last Name
Hill
Spouse’s First Name
Margaret
MI
E
Last Four Digits of
Spouse’s SSN
4821
THIS RETURN MUST BE FILED IN DUPLICATE WITH THE
REGISTER OF WILLS
TYPE OF RETURN (only select one)
Original Estate ReturnSelect one type only
Supplemental Estate Return(Only include items not previously reported)
Individual-Transfer Return(Individual reporting non-probate assets separate from the estate; Schedule F and G assets only)
Remainder Return(Date of death prior to 12/13/1982)
FILL IN ALL OVALS THAT APPLYMark every oval that applies
1.  Decedent Died Testate(Attach copy of Will)
2.  Spouse is Sole Beneficiary(With no Trust involved)
3.  Litigation Proceeds Received
4.  Federal Estate Tax Return Required
5.  Agricultural Exemption(Date of death after 6/30/2012)
6.  Family-Owned Business Exemption(Date of death after 6/30/2013)
7.  Business Assets
8.  Decedent Maintained Living Trust(Attach copy of Trust)
9.  Future Interest Compromise(Date of death after 12/12/1982)
10. Deferral/Election of Spousal Trust
11. 1 Total Number of Safe Deposit Boxes
Name
Margaret E. Hill
Person filing the return
Daytime Telephone Number
(717) 555-0142
Daytime phone
First Line of Address
88 Laurel Ridge Road
Second Line of Address
City or Post Office
Harrisburg
State
PA
Zip Code
17101
Correspondent’s email address:
margaret.hill@example.com
Correspondent email
PLEASE USE ORIGINAL FORM ONLY
REGISTER OF WILLS USE ONLYDATE FILED STAMP
REGISTER OF WILLS USE ONLY
DATE FILED MMDDYYYY
1505624105
1505624105
PAGE 1
1505624205
REV-1500 (EX) MOD 08-24 (FI)
Decedent’s Social Security Number
XXX-XX-7342
Same as page 1
➜Decedent’s Name:
Hill, Wyeth A., Jr.
RECAPITULATION
1.Real Estate (Schedule A)1.
215,000
Schedule A total
2.Stocks and Bonds (Schedule B)2.
48,500
3.Closely Held Corporation, Partnership, or Sole-Proprietorship (Schedule C)3.
0
4.Mortgages and Notes Receivable (Schedule D)4.
0
5.Cash, Bank Deposits, and Miscellaneous Personal Property (Schedule E)5.
62,300
6.Jointly Owned Property (Schedule F)Separate Billing Requested6.
40,000
7.Inter-Vivos Transfers & Miscellaneous Non-Probate Property
(Schedule G)Separate Billing Requested7.
85,000
IRA / non-probate (Sch. G)
8.Total Gross Assets (total Lines 1 through 7)8.
450,800
Add lines 1–7
9.Funeral Expenses and Administrative Costs (Schedule H)9.
14,200
10.Debts of Decedent, Mortgage Liabilities, and Liens (Schedule I)10.
31,600
11.Total Deductions (total Lines 9 and 10)11.
45,800
12.Net Value of Estate (Line 8 minus Line 11)12.
405,000
13.Charitable and Governmental Bequests/Sec. 2113 Trusts for which
an election to tax has not been made (Schedule J)13.
5,000
14.Net Value Subject to Tax (Line 12 minus Line 13)14.
400,000
Value subject to tax
TAX CALCULATION – SEE INSTRUCTIONS FOR APPLICABLE RATES
15.  Amount of Line 14 taxable at the spousal tax rate, or transfers under Sec. 2116 (a)(1.2) or (1.4)
100,000
X .0 0
15.
0
16.  Amount of Line 14 taxable at lineal rate
300,000
X .0 45
16.
13,500
Amount × lineal rate (4.5%)
17.  Amount of Line 14 taxable at sibling rate
0
X .12
17.
0
18.  Amount of Line 14 taxable at collateral rate
0
X .15
18.
0
19.TAX DUE19.
13,500
Total tax due
Under penalties of perjury, I declare I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer other than the person responsible for filing the return is based on all information of which preparer has any knowledge.
SIGNATURE OF PERSON RESPONSIBLE FOR FILING RETURN
Margaret E. Hill
The PA Department of Revenue does NOT accept electronic signatures. Please sign your return.
Sign by hand
DATE
10/05/2026
MM/DD/YYYY
ADDRESS
88 Laurel Ridge Road, Harrisburg, PA 17101
SIGNATURE OF PREPARER OTHER THAN PERSON RESPONSIBLE FOR FILING THE RETURN
Daniel Frost
The PA Department of Revenue does NOT accept electronic signatures. Please sign your return.
DATE
10/06/2026
MM/DD/YYYY
ADDRESS
300 Market Street, Suite 12, Harrisburg, PA 17101
1505624205
1505624205
PAGE 2
1505624305
REV-1500 (EX) MOD 08-24 (FI)
File Number
21-26-0419
DECEDENT’S COMPLETE ADDRESS
➜
Decedent’s Name
Wyeth A. Hill, Jr.
Street Address
88 Laurel Ridge Road
City
Harrisburg
State
PA
ZIP Code
17101
TAX PAYMENTS AND CREDITS
1.Tax Due (Page 2, Line 19)1.
13,500
Tax due from page 2
2.Prior Payments – Enter total payment amount on Line 2
(List each receipt number for prior payments)
Receipt 1Receipt 2Receipt 3Receipt 4
RW-0042187
Receipt numbers
Total Amount Paid
(If additional space is needed, attach a separate piece of paper)
2.
5,000
3.Discount – Only if applicable (See Instructions)3.
250
5% discount on early payment
4.Interest4.
0
5.If Line 2 + Line 3 is greater than Line 1 + Line 4, enter the difference. This is the OVERPAYMENT.
Complete the OVERPAYMENT Section below5.
0
6.If Line 1 + Line 4 is greater than Line 2 + Line 3, enter the difference. This is the TAX DUE6.
8,250
Balance due
OVERPAYMENT: (select one oval)
Leave overpayment on the account*
Issue a refund of the entire overpayment
Issue a partial refund and leave the remaining amount on the account* ………. Refund Amount $
Make check payable to: REGISTER OF WILLS, AGENT
Important: Estate refunds will be issued in the name of the estate and mailed to the correspondent on file at the time of issuance. If you are unable to cash a refund in the name of the estate or the refund should be mailed to another individual, a representative of the estate may request a change. See instructions for additional information.
*The department will only maintain an overpayment for 3 years.
MARK ALL OVALS THAT APPLY
1.Decedent made a transfer and:
a. retained the use or income of the property transferred.
b. retained the right to designate who shall use the property transferred or its income.
c. retained a reversionary interest.
d. received the promise for life of either payments, benefits, or care.
2.If death occurred after Dec. 12, 1982: Decedent transfered property within one year of death
without receiving adequate consideration.
3.Decedent owned an “in trust for” or payable-upon-death bank account or security at his or her death
4.Decedent owned an individual retirement account, annuity, or other non-probate property, which
contains a beneficiary designationMark: IRA with beneficiary
IF ANY OVALS ARE MARKED, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN
1505624305
1505624305
PAGE 3
Preview generated for demonstration purposes — not an official Pennsylvania Department of Revenue document

In most cases, the personal representative of the estate, such as the executor or administrator, is responsible for filing the Pennsylvania inheritance tax return and arranging payment.

The main return for a Pennsylvania resident’s estate is Form REV-1500.

Step What to Do
1Get the form Download Form REV-1500.
2Gather records Collect the will, asset values, bank statements, debts, and beneficiary details.
3List assets Report the deceased person’s taxable property.
4Calculate tax Apply the correct tax rate and eligible deductions.
5Complete the return Fill in the form and required schedules, then sign it.
6File the return Submit 2 copies to the county Register of Wills where the deceased lived. Nonresidents file with the PA Department of Revenue.
7Pay the tax Pay within 3 months to qualify for a 5% discount.

If you are administering an estate, remember that the return is generally due nine months after death and that paying within three months can qualify for a 5% discount.

Pennsylvania Inheritance Tax FAQs

Pennsylvania Inheritance Tax FAQs

Pennsylvania inheritance tax is based on who receives the property and their relationship to the deceased, rather than solely on the estate’s total value.

Generally, no. Life insurance proceeds paid to named beneficiaries are exempt from Pennsylvania inheritance tax, although certain arrangements may be treated differently.

Generally, yes. Inherited traditional IRAs and 401(k)s may be taxable, and the rate depends on the beneficiary’s relationship to the deceased; Roth accounts may also be subject to tax.

The deceased’s share of jointly owned property may be subject to inheritance tax, with special rules for spouses and property transferred shortly before death.

Gifts made within one year before death may be taxable, subject to applicable exclusions; Pennsylvania generally does not impose a separate gift tax.

Yes, certain assets transferred through trusts, joint accounts, or payable-on-death arrangements may be taxable even if they bypass probate.

The estate typically handles tax on probate assets, while beneficiaries may be responsible for tax on assets transferred directly to them, depending on the circumstances.

Yes. You can generally file a protest with the Pennsylvania Department of Revenue’s Board of Appeals within 60 days of the assessment notice.

Yes. Eligible funeral costs, administration expenses, and debts of the deceased may be deductible when calculating taxable estate value.

Late filing or payment may result in penalties and interest, while qualifying payments made within three months of death may receive an early-payment discount.

Visit the Pennsylvania Department of Revenue’s official website for inheritance tax forms, instructions, and guidance.

References:

I'm Dave, a retirement writer with 15+ years in insurance and financial services, helping seniors navigate retirement, Social Security, and savings with clear, practical guidance.

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