The rates by relationship, the 9-month deadline, and how the tax lien is handled when you sell.
Pennsylvania taxes inherited property based on who inherits it, not the size of the estate. There is no dollar exemption for most heirs, so the rate applies from the first dollar — but the rates are lower than many people fear, and a family farm can be exempt entirely.
• Surviving spouse: 0%
• Children, grandchildren, parents (lineal): 4.5%
• Siblings: 12%
• Everyone else (nieces, nephews, friends, partners): 15%
• Qualifying family farm: 0% — see the family-farm exemption
The return (REV-1500) and payment are due nine months after the date of death. Pay within three months and you earn a 5% discount. The tax becomes a lien on the property that your title company clears at closing — so you can sell before it is paid and settle it from the proceeds. Always run your specific numbers by a CPA; this is general information, not tax advice.
It depends on your relationship to the person who died: 0 percent for a surviving spouse, 4.5 percent for children, grandchildren, and parents, 12 percent for siblings, and 15 percent for everyone else. A qualifying family farm can be taxed at 0 percent. Pennsylvania has no dollar exemption for most heirs, so the tax applies from the first dollar.
The REV-1500 return and payment are due nine months after the date of death. If you pay within three months of death, you get a 5 percent discount. An extension to file does not extend the time to pay, and unpaid tax after nine months accrues interest.
Yes. Pennsylvania real estate is always subject to PA inheritance tax, no matter where the heirs live. The rate is still set by the relationship to the person who died.
The inheritance tax becomes a lien on the real estate. The title company clears it at closing, typically from the sale proceeds, so it does not have to be paid out of pocket before you sell. Many executors make an estimated prepayment within three months to capture the 5 percent discount.
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