Estate Planning & Administration
PA Inheritance Tax Rates 2026: 0% to 15%
Last updated July 2026
5 min read
✓ Verified Jul. 2026Pennsylvania's inheritance tax is imposed on the transfer of property at death under 72 P.S. § 9116. The rate depends solely on the relationship between the decedent and the beneficiary.
Zero for estates of decedents dying on or after January 1, 1995.
72 P.S. § 9116(a)(1.1)(ii)
Transfers from a natural, adoptive, or stepparent. Applies where the parent died after December 31, 2019.
72 P.S. § 9116(a)(1.4)
Qualifying religious, charitable, scientific, literary, and educational organizations, and government bodies.
72 P.S. § 9111(b), (c)
Children, grandchildren, parents, grandparents, and the spouse of a child.
72 P.S. § 9116(a)(1)
The sibling rate, whole or half blood.
72 P.S. § 9116(a)(1.3)
Nieces, nephews, cousins, friends, and unmarried partners.
72 P.S. § 9116(a)(2)
These rates apply to the net value of property transferred to each beneficiary, meaning gross value minus allowable deductions. Each beneficiary class is taxed at its own rate, and the beneficiaries and their shares are listed on Schedule J.
The REV-1500 return is due within nine months of the date of death. If you pay the full tax within three months of death, the estate receives a 5% discount on the total tax due. On a $500,000 estate passing to children (4.5% rate = $22,500 tax), that discount saves $1,125. Interest accrues on unpaid tax beginning nine months and one day after death.
Even if you cannot prepare the full return within three months, you can make an estimated pre-payment to the Register of Wills and still claim the discount on the amount paid. This is one of the most commonly missed opportunities in estate administration.
The estate may request a filing extension using Form REV-1846, but an extension to file does not extend the time to pay; interest still accrues after nine months. And Pennsylvania does not allow amended returns. If the Department later assesses a different value, any dispute goes through the administrative protest or appeal process.
The Pennsylvania Inheritance Tax Return (Form REV-1500) is a three-page cover document supported by individual schedules, each one a separate form with its own REV number. You only file the schedules that apply to the estate.
Schedules A through G report assets: real estate (A), stocks and bonds (B), closely held business interests (C), mortgages owed to the decedent (D), cash, bank accounts, and personal property (E), jointly held property with non-spouses (F), and non-probate transfers including retirement accounts, life insurance, trusts, and lifetime gifts (G).
Schedules H and I report deductions: funeral and administrative expenses (H) and the decedent's debts, mortgages, and liens (I). These reduce the taxable estate.
Schedule J lists every beneficiary, their relationship to the decedent, and what each one receives. The tax itself is computed on the REV-1500 cover sheet, where each share is taxed at the applicable rate.
Schedules K through O handle specialized situations: life estates, remainder interests, future interest compromises, credits for prior transfers, and spousal trust elections. Most estates do not need them.
For a detailed walkthrough of each schedule (what to report, which form number to use, and what the Department is checking) see our REV-1500 Schedules Guide.
One wrong valuation can trigger a deficiency notice, interest, and personal liability for the executor. I prepare the full return, capture the 5% early-payment discount, and handle the schedules that catch most estates. Get a free consultation.
The inheritance tax return looks straightforward on the surface: list assets, subtract deductions, apply rates. In practice, it is one of the filings most likely to generate a deficiency notice from the Department of Revenue. Here is why:
Real estate valuation. The Department does not accept whatever value you report. They cross-check it against the county's assessed value multiplied by the Common Level Ratio (CLR). In Bucks County, the current CLR factor is 17.86 (July 2026 to June 2027): a property assessed at $20,000 has a computed fair market value of $357,200. Report too low without a professional appraisal and you will hear from Harrisburg.
Retirement accounts. IRAs, 401(k)s, and pensions with named beneficiaries bypass probate entirely, which is why executors often forget to include them. They are reported on Schedule G, and for many estates they are the single largest tax item on the return. Taxability is not automatic, though: under 72 P.S. § 9111(r) and 61 Pa. Code § 93.131(c), these payments are exempt to the extent the decedent did not, before death, have the right to possess, enjoy, assign, or anticipate them (commonly relevant where the decedent died before reaching the age or event giving withdrawal rights). Where the decedent had full lifetime control, as in the typical retiree case, the account is taxable.
Jointly held property. Joint accounts between parent and child are fully taxable unless the child can prove they contributed their own funds. Joint property between spouses held for more than one year is exempt. Mixing these up triggers either unnecessary tax or a deficiency notice.
Lifetime transfers. Gifts made within one year of death, added joint owners, changed beneficiary designations, transfers with retained life estates, all taxable on Schedule G. The Department reviews bank records and deed transfers closely.
Business interests. Closely held business valuations are among the most contested items on the return. Marketability and minority discounts require qualified appraisal support the Department will accept.
Every one of these issues requires judgment calls about valuation, classification, and documentation. That is where professional preparation pays for itself, often by avoiding a deficiency assessment that would cost more than the fee.
The return is filed with the Register of Wills at 55 East Court Street, Sixth Floor, Doylestown, not at the Government Service Centers in Levittown or Quakertown. Two copies are required (one signed original). After filing, the status can be tracked through the Department of Revenue's myPATH portal. Pre-payments can be submitted before the return is ready. Provide the decedent's full name, date of death, and Social Security number with a check payable to "Register of Wills, Agent."
There is no legal requirement. But the return is a formal tax filing with legal consequences. Errors can result in deficiency assessments, interest, and personal liability for the executor. Most estates with real estate, retirement accounts, or business interests benefit from professional preparation.
It depends. Life insurance proceeds on the life of the decedent are exempt from Pennsylvania inheritance tax, even when payable to the decedent's estate, under 72 P.S. § 9111(d) and 61 Pa. Code § 93.131(b). Life insurance payable to a surviving spouse is also exempt. Life insurance payable to any other named beneficiary is reported on Schedule G, but it qualifies for the same exemption.
Property held between spouses as tenants by the entireties or joint tenants with right of survivorship for more than one year before death is completely exempt and does not need to be reported on any schedule.
No. Pennsylvania does not allow amended inheritance tax returns. If you discover additional assets, you file a supplemental return. If a value is disputed, you go through the Department's protest process. This is one of the strongest reasons to get it right the first time.
Do not file the REV-1500 alone. I prepare Pennsylvania Inheritance Tax Returns for estates in Bucks County and the surrounding counties, protect the 5% discount, and keep the executor off the hook for valuation errors. Call 215-949-0888 or request a free consultation today.
Statutory content on this page was last verified against Pennsylvania statutes (20 Pa.C.S.; 72 P.S. Art. XXI): Jul. 2026. If you are reading this significantly after that date, confirm key provisions with current statute text or contact our office.
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