Pennsylvania Inheritance Tax: Rates and Exemptions (2026)

Most states have abolished death taxes, but Pennsylvania kept one: the inheritance tax. If you live in Pennsylvania or expect to inherit from someone who did, this is the single most important number in your estate plan, because it is charged on nearly every dollar that passes at death. Unlike the federal estate tax, there is no large exemption to shelter a modest estate. This guide lays out the current rates, who is exempt, and how the separate federal estate tax fits in.

The Pennsylvania inheritance tax rates

Pennsylvania sets the rate by who receives the property.¹ The current rates are:

Who inherits	Inheritance tax rate
Surviving spouse	0%
Parent inheriting from a child aged 21 or younger	0%
Children, grandchildren, and other lineal descendants; parents and lineal ancestors	4.5%
Siblings (brothers and sisters)	12%
All other heirs (nieces, nephews, friends, unmarried partners)	15%
Charities and exempt organizations	0%

So a surviving spouse pays nothing.¹ A parent who inherits from a child who was 21 or younger also pays nothing.² A child or grandchild pays 4.5%. A brother or sister pays 12%. A friend, an unmarried partner, or a more distant relative pays 15%. Transfers to qualifying charities are exempt.

Deadlines and the early-payment discount

The Pennsylvania inheritance tax return and payment are generally due within nine months of the date of death. Pennsylvania rewards paying early: if the tax is paid within three months of death, the estate receives a 5% discount on the tax paid.¹ The return is filed with the Register of Wills in the county where the person lived.

What is subject to the tax

The inheritance tax reaches almost everything of value that passes at death: real estate in Pennsylvania, bank accounts, investments, vehicles, and personal property. Crucially, it also applies to many assets that avoid probate, such as jointly owned property and POD or TOD accounts. Avoiding probate does not avoid this tax. Life insurance proceeds paid to a named beneficiary are a notable exception and are generally not subject to Pennsylvania inheritance tax.¹

Pennsylvania has no separate estate tax

Pennsylvania does not impose its own estate tax; the inheritance tax described above is the only Pennsylvania death tax.³ That means the value of the estate as a whole is not taxed at the state level, only the individual transfers to heirs.

The federal estate tax still applies

Separately from Pennsylvania's tax, the federal estate tax can apply to very large estates anywhere in the country. For 2026, the federal estate tax exemption is $15 million per person, an amount made permanent and indexed for inflation by the One Big Beautiful Bill Act signed in 2025.⁴ A married couple can effectively shelter up to $30 million through portability. Because the exemption is so high, the vast majority of Pennsylvania estates owe no federal estate tax at all, even though they may owe Pennsylvania inheritance tax from the first dollar.

Can you reduce the inheritance tax?

Some planning can lower the bill, but be realistic about the limits. Leaving assets to a spouse or a charity is exempt. Lifetime gifts made more than one year before death generally fall outside the tax, though gifts within one year of death are pulled back in above a small threshold. A revocable living trust does not help: assets in it are taxed at the same rates, as we explain in our guide comparing a living trust and a will in Pennsylvania. For a larger estate, this is an area where a Pennsylvania estate attorney or tax advisor genuinely earns their fee.

Plan with the tax in mind

The inheritance tax is a reason to think carefully about who you leave assets to, not a reason to avoid making a will. A clear will still controls who inherits and can direct how the tax is paid so one beneficiary is not unfairly burdened. If you die without one, the intestacy rules decide, and those heirs face the same tax; see our guide on dying without a will in Pennsylvania. When you are ready, put your plan on paper with our Pennsylvania will form.

Sources

1. 1Inheritance Tax (rates, deadlines, discount, exemptions), Pennsylvania Department of Revenue (pa.gov)
2. 2Inheritance Tax for Pennsylvania Residents (0% parent-from-minor-child), Montgomery County (montgomerycountypa.gov)
3. 372 P.S. Article XXI, Inheritance and Estate Tax Act (Pennsylvania statutes) (legis.state.pa.us)
4. 4Estate and Gift Tax FAQs (2026 $15 million exemption), Internal Revenue Service (irs.gov)

Frequently Asked Questions

What are the Pennsylvania inheritance tax rates? 0% to a surviving spouse and to a parent inheriting from a child aged 21 or younger, 4.5% to children and other lineal descendants and ancestors, 12% to siblings, and 15% to all other heirs. Charities are exempt.

Does Pennsylvania have an estate tax? No. Pennsylvania has an inheritance tax but no separate state estate tax. Only the federal estate tax can apply, and only to very large estates.

What is the federal estate tax exemption in 2026? For 2026 the federal estate tax exemption is $15 million per person, made permanent and indexed for inflation by the One Big Beautiful Bill Act. Married couples can shelter up to $30 million through portability.

Is there a discount for paying Pennsylvania inheritance tax early? Yes. The estate receives a 5% discount on inheritance tax paid within three months of the date of death. The return is otherwise due within nine months.