Pennsylvania inheritance tax rates
| Who inherits | Rate |
|---|---|
| Surviving spouse | 0% |
| A parent, from a child aged 21 or younger | 0% |
| Children, grandchildren, and other direct descendants and lineal heirs | 4.5% |
| Brothers and sisters | 12% |
| Everyone else (nieces, nephews, friends, in-laws other than a spouse) | 15% |
| Qualifying charities, exempt institutions, and government entities | Exempt |
Tax is due at death and becomes delinquent nine months later. Paying within three months earns a 5% discount. Source: Pennsylvania Department of Revenue.
Unlike the federal estate tax, which applies only to estates above $15 million per person in 2026, Pennsylvania’s inheritance tax has no exemption amount. A $400,000 estate left to two children owes the same 4.5% rate as a $40 million one. That is why it is worth understanding for nearly every Pennsylvania family, not only the very wealthy.
What is taxable
The tax generally applies to the property a Pennsylvania resident owned at death: real estate located in Pennsylvania, bank and brokerage accounts, stocks and bonds, business interests, vehicles, and personal belongings. For nonresidents, it applies to real estate and tangible property located in Pennsylvania.
- Jointly owned property with someone other than a spouse. The decedent’s share is generally taxable. For two owners, that is typically half the value, even if the account was opened years earlier.
- Gifts made within one year of death. Transfers made within a year before death are generally pulled back into the taxable estate to the extent they exceed $3,000 per recipient.
- Retirement accounts of owners aged 59½ or older. See the next section; age at death matters.
Reasonable funeral costs, estate administration expenses, and debts of the decedent, including a mortgage, are generally deductible before the tax is calculated.
What is exempt
- Life insurance proceeds paid because of the decedent’s death.
- Property owned jointly by spouses.
- Transfers to a surviving spouse (taxed at 0%), including through a will or trust.
- Gifts made more than one year before death.
- Qualifying farm land and agricultural property passing to eligible family members, and qualifying small family-owned businesses that meet asset, employee, and holding-period tests.
- Bequests to qualifying charities.
How IRAs, 401(k)s, and Roth IRAs are treated
Retirement accounts are where the rules surprise people most, because the answer depends on the owner’s age at death. According to the Pennsylvania Department of Revenue:
- Traditional IRA, owner died before 59½: generally not taxable, because a federal early-withdrawal penalty would have applied. The exception is an owner who was disabled at death.
- 401(k), owner died before 59½: generally the same, unless the owner had the right to terminate the plan during life, which in many plans begins at the plan’s normal retirement age.
- Traditional IRA or 401(k), owner died at 59½ or older: generally taxable at the beneficiary’s rate.
- Roth IRA, owner died before 59½: contributions are taxable because they could have been withdrawn without penalty; earnings generally are not.
Because most retirement savers die after 59½, large IRAs left to children are often one of the biggest drivers of Pennsylvania inheritance tax. The beneficiaries may then owe federal income tax on the same dollars as they withdraw them. Our Roth conversion guide and Pennsylvania retirement tax guide cover how this interacts with lifetime planning.
A worked example
A widowed Pennsylvania resident, age 78, leaves everything equally to two adult children:
| Asset | Value | Taxable? |
|---|---|---|
| Home in Chester County | $600,000 | Yes |
| Brokerage account | $500,000 | Yes |
| Traditional IRA (owner over 59½) | $300,000 | Yes |
| Life insurance | $500,000 | No, exempt |
| Less funeral, administration costs, and debts | −$40,000 | |
| Taxable estate | $1,360,000 |
- At 4.5% for children, the tax is $61,200.
- Paid within three months of death, the 5% discount lowers it to $58,140.
- If the same estate went to a brother or sister instead, the 12% rate would make it $163,200.
Hypothetical and simplified for illustration. Actual valuations, deductions, and exemptions depend on the facts and current law.
Planning ideas families commonly consider
Pennsylvania inheritance tax is hard to eliminate, but it can often be reduced or planned for. Each idea below has trade-offs and should be coordinated with an estate attorney and CPA.
Timing
Lifetime gifts
Gifts made more than one year before death are generally outside the tax. The trade-off is giving up control and the step-up in basis that inherited assets usually receive for federal income tax.
Liquidity
Life insurance
Because proceeds are exempt, a policy can give heirs cash to pay the tax without selling a home or business at a bad time.
Retirement accounts
Roth conversions and beneficiary choices
Converting or drawing down IRAs during life, and naming beneficiaries deliberately, can change both the inheritance tax and the income tax heirs eventually pay.
Charitable intent
Charitable gifts
Bequests to qualifying charities are exempt, and IRA assets are often the most tax-efficient assets to leave to charity.
Two cautions. Adding a child as a joint owner on an account does not avoid the tax on the decedent’s share and can create other legal and tax problems. And paying within three months to capture the 5% discount requires cash to be available quickly, which is easier when it has been planned.
Pennsylvania inheritance tax vs. federal estate tax
The two are separate. Pennsylvania has no state estate tax, but its inheritance tax is owed by the estate on what each beneficiary receives, at a rate set by the relationship. The federal estate tax applies only above the federal exemption, $15 million per person in 2026, and a married couple can generally shelter twice that. Most Pennsylvania families owe the state tax but not the federal one. For larger estates, our estate tax exposure estimator gives a rough federal view, and our estate planning page describes how we coordinate with your attorney.
Frequently asked questions
What are the Pennsylvania inheritance tax rates?
Pennsylvania taxes inheritances at 0% for transfers to a surviving spouse or to a parent from a child aged 21 or younger, 4.5% for transfers to direct descendants and lineal heirs such as children and grandchildren, 12% for transfers to siblings, and 15% for transfers to other heirs. Transfers to qualifying charities and exempt institutions are not taxed.
Is life insurance subject to Pennsylvania inheritance tax?
No. Life insurance proceeds paid on the death of the decedent are generally exempt from Pennsylvania inheritance tax, which is one reason life insurance is often used to provide liquidity for heirs.
Are IRAs and 401(k)s subject to Pennsylvania inheritance tax?
It depends mainly on the owner’s age at death. According to the Pennsylvania Department of Revenue, a traditional IRA is generally not subject to inheritance tax if the owner died before age 59½, because a penalty would have applied to withdrawals, unless the owner was disabled. A 401(k) follows a similar rule unless the owner had the right to terminate the plan. Accounts of owners who died at 59½ or older are generally taxable. For a Roth IRA, contributions are taxable while earnings may not be when the owner died before 59½.
When is Pennsylvania inheritance tax due?
The tax is due at the decedent’s death and becomes delinquent nine months after the date of death. If the tax is paid within three months of death, a 5% discount is allowed.
Does Pennsylvania have an estate tax?
Pennsylvania does not have a separate state estate tax; it has an inheritance tax based on who receives the property. Large estates may also owe federal estate tax, which applies only above the federal exemption of $15 million per person in 2026.