Pennsylvania Inheritance Tax Guide
Last updated: 24 Oct 2025 • Author: Alexander Foelsche CPA (US), WP (DE), RE (CH)
Pennsylvania Inheritance Tax — Overview
Pennsylvania imposes an inheritance tax (not a modern state estate tax). Rates depend on the recipient’s relationship to the decedent: 0% spouse/qualified charity; 4.5% lineal heirs/ascendants; 12% siblings; 15% others. Returns are typically filed with the Register of Wills; tax is due in 9 months with a 5% discount for payments made within 3 months. 72 P.S. • REV-1500
Key facts
Rate classes
- 0% — Surviving spouse; qualified charities/government.
- 4.5% — Lineal heirs/ascendants (children, grandchildren, parents).
- 12% — Siblings.
- 15% — All others (unless an exemption applies).
Deadlines
- Return due: 9 months after death.
- Discount: 5% if tax is paid within 3 months.
- Extensions may allow more time to file, not to pay.
Where to file
- Register of Wills in the county of domicile (residents).
- For nonresidents, file where PA property is located (or as directed by DOR).
- Use the REV-1500 series schedules/instructions.
Beneficiary classes — quick table
| Class | Typical beneficiaries | Rate | Notes |
|---|---|---|---|
| Spouse / Charity | Surviving spouse; qualified charities & government | 0% | Maintain documentation of status/qualification. |
| Lineal | Children, grandchildren, parents | 4.5% | Confirm relationships; adoption/step-relationships can matter. |
| Sibling | Brothers and sisters | 12% | Half-siblings are generally included unless statute says otherwise. |
| All others | Nieces/nephews, friends, non-lineal relatives | 15% | Review for exemptions (e.g., life insurance to a named beneficiary). |
Residents vs. Nonresidents — situs rules
Residents (domiciled in PA)
- Transfers of property wherever situated (subject to statutory exclusions).
- Use estate inventory values, appraisals, and schedules consistent with probate filings.
- Consider spousal/QTIP design and charitable planning to manage rates.
Nonresidents
- Tax typically applies to PA real property and tangible personal property.
- Most intangibles (brokerage, stock, cash) of a nonresident are outside scope unless there is a PA business situs.
- File with the county Register of Wills where the PA property is located.
Core forms
Pennsylvania (REV-1500 series)
- REV-1500 — Inheritance Tax Return (with schedules & instructions).
- Schedules for real estate, securities, bank accounts, tangibles, closely-held businesses.
- Family farm/family-owned business relief schedules/affidavits (if claimed).
- Extension request procedures (county/DOR).
Typical attachments
- Death certificate; Letters Testamentary/Administration; will/trust instruments.
- Deeds/assessments for PA real estate; appraisals for real/tangible property.
- Statements for financial assets; valuation for closely-held entities.
- Proof of deductible expenses; court orders approving fees/commissions.
Deadlines & discounts (summary)
| Item | When | Where | Notes |
|---|---|---|---|
| Return (REV-1500) | 9 months after death | Register of Wills (county) | Payment due by 9 months; interest/penalties after the due date. |
| Early payment discount | Within 3 months | Register of Wills / DOR | 5% discount on tax paid within three months; estimated payments are allowed and later reconciled. |
| Extension to file | Request before 9 months | Register of Wills / DOR | Extends time to file only—not time to pay. Consider protective payments. |
Filing workflow
- Confirm domicile and correct county; identify PA-situs assets (for nonresidents).
- Collect appraisals and inventory values; map each beneficiary to a rate class.
- Calendar the 3-month discount and 9-month filing dates; consider estimated payment.
- Prepare REV-1500 with schedules, attachments, and proof of payments/fees.
- Retain stamped copies and receipts for probate accounting and distributions.
FAQs
Does Pennsylvania have an estate tax?
No. Pennsylvania imposes an inheritance tax (rate by beneficiary class), not a modern state estate tax.
Is life insurance taxable?
Life insurance proceeds payable to a named beneficiary are generally exempt from PA inheritance tax.
References
- Pennsylvania Inheritance and Estate Tax Act (72 P.S.) — beneficiary classes, rates, situs, deductions.
- PA Department of Revenue — Inheritance Tax (REV-1500 series) forms, schedules, instructions.
- County Registers of Wills — local filing procedures, payment, addresses.
- Orphans’ Court practice — probate steps affecting deductions and timing.