PA risk area
Tax exposure in Pennsylvania
State estate or inheritance tax rules and how they interact with federal thresholds.
Pennsylvania imposes an inheritance tax with rates based on beneficiary class.
Does the state impose an estate or inheritance tax?Who is exempt or receives preferential treatment?How does federal tax interact with state rules?
At a glance
Key takeaways
- Transfers to a surviving spouse or to a parent from a child age 21 or younger are taxed at 0%.
- Transfers to direct descendants and lineal heirs are taxed at 4.5%.
- Transfers to siblings are taxed at 12%.
- Transfers to other heirs are taxed at 15%, with exemptions for charities and government entities.
Questions to consider
Questions this risk area helps you evaluate in Pennsylvania
- Does the state impose an estate or inheritance tax?
- Who is exempt or receives preferential treatment?
- How does federal tax interact with state rules?
State overview
Pennsylvania imposes an inheritance tax with rates based on beneficiary class.
- Transfers to a surviving spouse or to a parent from a child age 21 or younger are taxed at 0%.
- Transfers to direct descendants and lineal heirs are taxed at 4.5%.
- Transfers to siblings are taxed at 12%.
- Transfers to other heirs are taxed at 15%, with exemptions for charities and government entities.
- Inheritance tax rates depend on beneficiary class, and close relatives are often exempt or taxed at lower rates.
Sources
- https://www.pa.gov/en/agencies/revenue/resources/tax-rates.html
- https://taxfoundation.org/data/all/state/estate-inheritance-taxes/
Risk sources
- IRS inflation adjustments for tax year 2026
Use for the current federal estate tax basic exclusion amount.
- IRS Instructions for Form 706 (United States Estate Tax Return)
Defines filing requirements and federal estate tax framework.
- Tax Foundation - State estate and inheritance taxes
Current list of states with estate or inheritance taxes.
National sources provide baseline context; state statutes and court rules control in Pennsylvania.