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TAXABLE PROPERTY children of the natural parents and their descendants,
In general, any items the decedent owned solely, as tenant- whether or not they have been adopted by others, adopted
in-common, jointly or in trust are taxable unless specifically descendants and their descendants, and step descen-
excluded by law. For additional information see instructions dants.
for Schedules A, B, C, D, E, F and G for descriptions of tax-
able property. Sibling Tax Rate: 12 percent
VALUATION The sibling tax rate is applicable for transfers to: Brothers
Generally, valuation is based on the fair market value as of or half-brothers, sisters or half-sisters; persons having at
the decedent’s date of death. Special rules apply to the val- least one parent in common with the decedent, either by
uation of life estates and future interests created by a dece- blood or by adoption. Transfers between stepsiblings are
dent. See the instructions for Schedules K nd M for more subject to tax at the collateral rate.
information. Collateral Tax Rate: 15 percent
For estates of decedents dying on or after Jan. 1, 1995, The collateral tax rate is applicable for transfers to all other
special rules exist for the valuation of a trust established for beneficiaries. This includes but is not limited to transfers to
the sole use of the surviving spouse. See the instructions or for the benefit of aunts, uncles, cousins, nieces,
for Schedule O for further information. nephews, friends, sister-in-law, brother-in-law, pets and
entities not classified as a charity.
Special rules also apply to the valuation of farmland. See
the instructions for Schedule A for further information con- Charitable Bequests
cerning the special farm use valuation and agriculture Transfers to exempt charitable organizations, exempt insti-
exemptions. tutions and government entities are exempt from tax.
It is important to note that Pennsylvania does not have a
six-month alternate valuation date similar to that found in DOCUMENTATION REQUIREMENT
the Internal Revenue Code. If the decedent died testate or had maintained an inter-vivos
(living) trust, a copy of the will and/or trust document must be
DEDUCTIONS submitted with the return. Additional verification or documen-
Funeral expenses, administrative costs and debts owed by tation on certain assets or deductions may be required by the
the decedent at the time of death are deductions allowed Department of Revenue to complete the review of this form.
against the inheritance tax liability. See the instructions for
The Department will request by letter, telephone, or e-mail
Schedules H and I for descriptions of allowable deductions.
the information needed. Failure to provide the information
will result in a delay of the processing of the return, or in the
TAX RATES issuance of an unfavorable assessment.
The law in effect at the date of death is what governs the Any supplemental information which the estate representa-
tax rate. The following information is based on a date of tive considers confidential should be submitted directly to:
death on or after July 1, 2000. Historical rates are located
on page 8. PA DEPARTMENT OF REVENUE
BUREAU OF INDIVIDUAL TAXES
Spousal Tax Rate: 0 percent PO BOX 280601
Any asset passing to a decedent’s spouse is taxed at 0 per- HARRISBURG PA 17128-0601
cent. No common-law marriage contracted after Jan. 1,
Include a statement that the documents are not part of the
2005 shall be valid. Common-law marriages otherwise law-
public record. Confidential documents need not be
ful and contracted on or before Jan. 1, 2005 will be recog-
attached to the return filed with the Register of Wills.
nized when proved with sufficient evidence of its existence.
If satisfactory evidence of the common-law marriage does FILING A FALSE RETURN
not exist or the contract came into existence after Jan. 1, Any person who willfully makes a false return or report
2005 transfers to the surviving common-law spouse are commits a misdemeanor of the third degree, and fined
taxable at the collateral, or 15 percent rate. twenty-five percent of the tax due or $1,000, whichever is
Minor Child’s Estate: 0 percent less.
Transfers from the estate of a child age 21 or younger to PAYMENT OF TAX
the child’s natural parent, adoptive parent or stepparent are Tax on property transfered is due within nine months of the
subject to a zero tax rate. decedent’s death.
Parental Transfers to Minor Children: 0 percent IMPORTANT: The granting of an extension to file the
For dates of death on or after January 1, 2020, transfers to tax return does not extend the time for payment of the
or for the use of a child twenty-one years of age or younger tax ultimately found to be due.
from a natural parent, an adoptive parent or a stepparent of
the child are subject to a zero tax rate. A 5 percent discount is allowed on the tax paid within three
months of the decedent’s death. No discount applies to any
Lineal Tax Rate: 4.5 percent amount that may be subsequently refunded.
The lineal tax rate is applicable for transfers to:
Grandfather, grandmother, father, mother, children, un- The discount is capped at 5 percent of the total tax due. In
remarried wife and husband or widower of a child, and lin- order to calculate discount amount:
eal descendants. “Children” includes natural children • If an underpayment was made, divide the payment
whether or not they have been adopted by others, adopted made by 0.95. Example: tax due is $150, a payment
children and stepchildren. “Lineal descendants” includes all made in the discount period is $100; $100.00/0.95 =
2 REV-1500 www.revenue.pa.gov
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