Pennsylvania Brochure: Inheritance Tax General Information

Brochure: Inheritance Tax General Information
Inheritance Tax General Information (REV-720)
INHERITANCE TAX
GENERAL INFORMATION

REV-720 (SU) 02-23

WHO MUST FILE

A Pennsylvania Inheritance Tax Return, REV-1500, must be filed for every decedent with property that may be subject
to Pennsylvania inheritance tax.
•	 The personal representative (executor or administrator appointed by the Register of Wills) of a decedent’s
estate is the person responsible for disclosing property of the decedent and filing the inheritance tax return.
If no personal representative is appointed, if the personal representative does not file a return, or if the personal
representative files a return but does not disclose all transferred property, then the transferee of property should file
an inheritance tax return.
•	 A transferee is any person to whom property from the decedent is transferred, including surviving joint
tenants, beneficiaries and heirs. The transferee must disclose any asset in which or of which he or she
receives any ownership, interest, income, possession or enjoyment, whether present or future, and whether
in trust or otherwise. Separate returns are not to be filed by transferees for property included in a personal
representative’s return. WHEN TO FILE An inheritance tax return should be filed as soon as possible after a
decedent’s death, but no later than nine months from the decedent’s date of death. Failure to file may subject
the estate to a penalty of 25 percent of the tax ultimately found to be due or $1,000, whichever is less.

WHERE TO FILE

An inheritance tax return must be filed in duplicate with the Register of Wills of the county in which
the decedent was a resident at the time of death.

PAYMENT OF TAX

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Tax on property transferred is due within nine months of the decedent’s death.
A five percent discount is allowed on the tax paid within three calendar months of a decedent’s death. No
discount applies to any amount that may be subsequently refunded.
A pre-payment of tax may be made at the Register of Wills before the REV-1500 is filed. In writing, supply the
Register with the decedent’s full name, date of death and Social Security number along with the prepayment.
All checks must be made payable to “Register of Wills, Agent” and presented to the Register of Wills of the
county where the decedent resided.

TAX RATES

The rates for Pennsylvania inheritance tax as of July 1, 2000 are as follows:
•	 0 percent on transfers to a surviving spouse or to a parent from a child aged 21 or younger*;
•	 4.5 percent on transfers to direct descendants and lineal heirs;
•	 12 percent on transfers to siblings; and
•	 15 percent on transfers to other heirs, except charitable organizations, exempt institutions and government entities
exempt from tax. Tax rates for dates of death prior to July 1, 2000 can be found by visiting www.revenue.pa.gov.
NOTE: Parental Transfers to Minor Children: 0 percent - For dates of death on or after January 1, 2020, transfers to or
for the use of a child twenty-one years of age or younger from a natural parent, an adoptive parent or a stepparent of
the child are subject to a zero-tax rate.

INTEREST

Interest on overdue inheritance tax is charged nine months and one day from the date of death, to the date of payment.
Interest rates are detailed in form REV-1611, available at www.revenue.pa.gov.
An online interest and penalty calculator is also available on the department’s online portal, mypath.pa.gov.

FORMS

Inheritance tax forms, schedules and instructions are available at www.revenue.pa.gov. You may also order any
Pennsylvania tax form or schedule by calling, toll-free 1-800-362-2050.
Schedules A through G are used to report assets of the estate. Schedules H and I are used to report debts and
deductions of the estate. Schedules K through O are used to report life estates, remainders and future interest
compromises.
Instructions for each schedule are available on the department’s website. The REV-1500, Pennsylvania
Inheritance Tax Return and corresponding instructions for more specific information are available on the
department’s website.

TAXABLE PROPERTY

In general, any items the decedent owned solely, jointly or in trust are taxable unless specifically excluded from
taxation by law. For additional information see instructions for Schedules A, B, C, D, E, F and G for descriptions of
taxable property.

ACTIVE-DUTY MILITARY MEMBER EXEMPTION

Effective for estates of decedents dying on or after September 6, 2022, personal property that is transferred from the
estate of a serving military member who has died as a result of an injury or illness received while on active duty in the
armed forces, a reserve component or the National Guard, is exempt from inheritance tax.

VALUATION

Generally, valuation is based on the fair market value as of the decedent’s date of death. Special rules apply for
valuation of life estates and future interests created by a decedent. See the instructions for Schedules K and M for
more information.
Special rules also apply to the taxation of farmland and small business interests. See the instructions for Schedules
AU and C-SB for further information concerning these provisions.
NOTE: Pennsylvania does not utilize or accept a six-month alternate valuation date like the federal government does.

DEDUCTIONS

Funeral expenses, administrative costs and debts owed by the decedent at the time of death are deductions allowed
against the inheritance tax liability. See the instructions for Schedules H and I for descriptions of allowable deductions.

APPRAISEMENT, ALLOWANCE OR DISALLOWANCE
OF DEDUCTIONS AND ASSESSMENT OF TAX

After an inheritance tax return is filed, the Department of Revenue issues a notice setting forth its valuation of
the estate’s assets, allowable deductions and tax due. Depending on the complexity of the return, it can take
three to six months from the date a return is filed with the Register of Wills for processing to be completed.

PROTEST, NOTICE OR APPEAL

Any party with interest in the estate, who is not satisfied with a department determination of estate value, allowance
or disallowance of inheritance tax deductions and/or tax liability, may appeal within 60 days of receipt of the notice to
which objection is made. Appeal information is available at www.boardofappeals.state.pa.us.

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FREQUENTLY ASKED QUESTIONS

Review Revenue’s Online Customer Service Center at www.revenue.pa.gov for answers to
frequently asked questions. There you may also submit questions specific to an estate to a customer
service representative.