Pennsylvania Inheritance Tax: Rates, Exemptions, and Deadlines

Last updated May 18, 2026

·Independent Pennsylvania tax education

Pennsylvania still has an inheritance tax, separate from the federal estate tax. Rates depend on who inherits. The return is due within nine months, and paying early earns a discount.

Key takeaways

PA inheritance tax rates depend on the relationship between the deceased and the beneficiary.
Transfers between spouses are generally exempt; transfers to children, parents, and grandchildren are taxed at a lower rate than transfers to siblings or unrelated heirs.
Returns are generally due within nine months of the date of death.
Paying within three months earns a 5% discount.

What PA inheritance tax is

Pennsylvania inheritance tax is a state tax on transfers of property from a deceased person to their beneficiaries. Unlike federal estate tax, PA inheritance tax applies regardless of the size of the estate. It is paid based on the inheritance each beneficiary receives, not on the total estate.

PA inheritance tax rates

Pennsylvania uses a tiered rate structure based on the relationship to the person who died:

Spouse to spouse: 0%.
To a parent from a child under age 21: 0%.
To lineal descendants (children, grandchildren) and parents: a lower tier.
To siblings: a middle tier.
To all other beneficiaries (such as nieces, nephews, unrelated heirs): the highest tier.

Because rates can change, always confirm the current rates with the PA Department of Revenue.

Exempt transfers

Several common transfers are generally exempt from PA inheritance tax:

Spouse-to-spouse transfers.
Life insurance proceeds paid directly to a named beneficiary.
Some charitable transfers.
Certain retirement plan death benefits.

The exemptions are technical and condition-specific. Confirm with a Pennsylvania-licensed estate attorney before treating any transfer as exempt.

The 9-month filing deadline

The PA inheritance tax return (Form REV-1500) is generally due within nine months of the date of death. Extensions are available in limited circumstances and must be requested in advance.

The 5% early-payment discount

If inheritance tax is paid within three months of the date of death, Pennsylvania offers a 5% discount on the amount paid. The return does not need to be finalized to get the discount, but the payment must be made on time.

Inheritance tax vs federal estate tax

These are independent taxes:

PA inheritance tax is a state tax paid based on beneficiary, with rates tied to relationship.
Federal estate tax only applies to estates larger than the federal exemption (which is in the millions). Most PA estates do not owe federal estate tax.

How the return gets filed

The PA inheritance tax return is filed with the Register of Wills in the PA county where the person lived at death. The return covers all assets, valuations as of the date of death, and the tax owed by each class of beneficiary.

For most families, working with a Pennsylvania-licensed estate attorney or a CPA experienced with PA inheritance returns is worth the cost. See our guide to finding a PA tax professional.

Best practices

Identify the inheritance tax-paying party before assets are distributed.
Set a calendar reminder for the 9-month return deadline as soon as someone dies.
Pay within 3 months when possible to earn the 5% discount.
Keep date-of-death valuations for every asset.
Work with a Pennsylvania-licensed attorney for any estate with real estate, business interests, or out-of-state assets.

Common mistakes

Confusing the federal estate tax exemption with PA inheritance tax (they are unrelated).
Distributing assets before the inheritance tax has been calculated or paid.
Missing the 9-month deadline.
Forgetting that transfers to siblings and unrelated heirs are taxed at the highest rate.
Trying to do the REV-1500 alone for a complicated estate.

Official Pennsylvania sources

PA Inheritance Tax
PA inheritance tax rates, forms, and filing instructions.
Pennsylvania Department of Revenue
Statewide tax administration, forms, and bulletins.
Pennsylvania Bar Association — attorney lookup
Find or verify a Pennsylvania attorney.

Frequently asked questions

Is PA inheritance tax the same as federal estate tax?

No. They are completely separate. PA inheritance tax applies regardless of the federal estate tax threshold and is paid by the beneficiary, not the estate as a whole.

How are PA inheritance tax rates set?

Rates are tiered based on the relationship to the person who died. Spouses get a 0% rate. Lineal descendants (children, grandchildren) and parents get a lower rate. Siblings get a higher rate. Other beneficiaries get the highest rate.

Do I have to pay PA inheritance tax on out-of-state inheritances?

PA inheritance tax generally applies to the estate of a Pennsylvania resident. Real estate located in PA is taxable regardless of where the owner lived.

Is life insurance taxed by PA?

Life insurance proceeds paid directly to a named beneficiary are generally exempt from PA inheritance tax. Confirm with a qualified estate attorney.

What happens if the return is filed late?

PA charges interest and may assess penalties on late filings or payments. The 5% early-payment discount is also lost.

Next read

How to Find a PA Tax Professional

Inheritance tax is rarely a do-it-yourself filing. Knowing how to find a qualified PA tax professional is the natural next step.

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Target keyword: Pennsylvania inheritance tax
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Solid coverage of the tiered rate structure unique to PA, deadlines, and the 5% discount. Lacks deep estate-planning detail.

Suggested improvements

Add expert review from a PA-licensed estate attorney.
Add worked numerical examples by relationship tier.
Add downloadable REV-1500 checklist.

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