Pennsylvania Inheritance Tax Nonresident Guide
Last updated: 24 Oct 2025 • Author: Alexander Foelsche CPA (US), WP (DE), RE (CH)
Pennsylvania Inheritance Tax — Nonresident Guide
For estates of decedents domiciled outside Pennsylvania that own Pennsylvania-situs assets. This page explains who must file, what is taxable, how beneficiary-class rates work, deadlines and the early-payment discount, payment/filing workflow, plus examples and checklists. Pennsylvania imposes an inheritance tax (rate by beneficiary class), not a modern state estate tax. 72 P.S. • REV-1500
Do you need to file as a nonresident?
What counts as Pennsylvania-situs property?
| Asset type | Taxed by PA? | Notes |
|---|---|---|
| Real property in Pennsylvania | Yes | Homes, land, condos, commercial property. Appraisal typically required. |
| Tangible personal property physically in PA | Yes | Vehicles, equipment, artwork, jewelry, inventory located in PA. |
| Intangibles (stock, bonds, cash, brokerage) | Generally no | Usually sourced to domicile unless a business situs is established in PA. |
| Entity interests (LLC/partnership/corp) | Generally no | Treated as intangibles; assess facts for possible PA business situs. |
Beneficiary classes & rates (applied to PA-situs transfers)
Common rates
- 0% — transfers to a surviving spouse; qualified charities.
- 4.5% — lineal heirs/ascendants (children, grandchildren, parents).
- 12% — siblings.
- 15% — all others (unless an exemption applies).
Classify each transferee correctly; disclaimers/elections can change the final class.
Deductions & allocation
Administration expenses, debts, and certain taxes/fees may reduce the taxable base. For nonresident estates, keep allocation of deductions to PA-situs assets consistent and well documented.
Deadlines, extensions & early-payment discount
| Item | Timing | Where | Notes |
|---|---|---|---|
| Inheritance tax return (REV-1500 series) | 9 months after date of death | Register of Wills (county) | Payment expected by the due date; interest/penalties accrue after. |
| Early payment discount | Within 3 months of death | Register of Wills / DOR | 5% discount on tax paid within 3 months—even if the return is filed later. |
| Extension to file | Request before 9 months | Register of Wills / DOR | Extends time to file only; consider an estimated payment to limit interest. |
| Installments / hardship | By request/approval | DOR | Limited relief may be available; interest applies. Coordinate with probate cash-flow. |
Filing workflow for nonresident estates
- Identify PA-situs assets and beneficiaries; determine classes/rates.
- Order appraisals; gather deeds, titles, custody/location evidence for tangibles.
- Assemble deductions and allocate reasonably to PA assets; keep support.
- Calendar the 3-month discount and 9-month filing; remit an early/estimated payment if helpful.
- File the REV-1500 series with the correct county Register of Wills; attach required schedules and proofs.
Quick examples
Example — Philadelphia condo
Nonresident decedent owns a PA condo and out-of-state securities. PA return includes the condo transfer only (plus allocable deductions). Securities are generally outside PA scope for a nonresident.
Example — Tangibles stored in PA
Nonresident decedent kept artwork and equipment in Pennsylvania. Those tangibles are PA-situs and included in the PA computation; classify beneficiaries to apply the correct rate.
Nonresident checklist
Documents
- Death certificate; letters of appointment (domicile state).
- Deeds, appraisal reports, photos/inventory for PA tangibles.
- Beneficiary relationship info to determine rate class.
Computation & timing
- Compute PA base for PA-situs assets; allocate deductions consistently.
- Target the 3-month payment (discount) and 9-month return.
- Retain payment receipts and stamped copies for estate accounting/closings.
FAQs — Nonresident estates
Are nonresidents taxed on brokerage accounts held in Pennsylvania?
Generally no. Intangibles of a nonresident (e.g., stock, bonds, cash) are typically sourced to domicile unless they acquire a Pennsylvania business situs.
Where do nonresidents file the return?
With the Register of Wills in the PA county where the PA property is located (or as directed by the Department of Revenue).
Can we get the 5% discount if we don’t have appraisals yet?
Often yes—by making an early/estimated payment within three months of death. Reconcile any difference with the return or an amended filing.
Do spousal transfers pay PA inheritance tax?
Transfers to a surviving spouse are taxed at 0%. Confirm titling and beneficiary designations to document the exemption.
References
- Pennsylvania Inheritance and Estate Tax Act (72 P.S.) — scope, situs, rates, deductions.
- PA Department of Revenue — Inheritance Tax (REV-1500 series) forms, schedules, instructions.
- County Registers of Wills — local filing procedures, addresses, payment acceptance.