Effective for dates of death after July 1, 2000, the Pennsylvania Inheritance Tax rate is 4.5% for direct descendants (lineal heirs, grandfather, grandmother, father, mother, children) and a rate of 12% for transfers to a sibling (an individual who has at least one parent in common with the decedent, whether by blood or adoption). Property owned jointly between married spouses is exempt from Inheritance Tax, while property inherited from a spouse is taxed at a rate of 0%. All other beneficiaries (nephews, nieces, aunts, uncles, cousins, friends, etc.) receive a tax rate of 15%. Charitable organizations, exempt institutions, and government entities are exempt from PA Inheritance Tax. A transfer from a child twenty-one (21) years of age or younger to a natural parent, adopted parent, or stepparent is also taxed at the zero rates. A discount of 5% of tax due is allowed for whatever portion of the tax is paid within three (3) months.
PA Inheritance Tax is due within nine (9) months of date of death. Interest is charged beginning with the first day of delinquency, or nine (9) months and one (1) day from the date of death, to the date of payment. An application of extension for filing the return may be requested.
The Register of Wills serves as an agent for the Commonwealth in the Collection of the tax. The return is filed with the Register who granted the letters. The Inheritance Tax check is made payable to "Register of Wills, Agent."