Inheritance Tax General Information (REV-720)

INHERITANCE TAX

GENERAL INFORMATION

REV-720 (SU) 02-23

WHO MUST FILE

A Pennsylvania Inheritance Tax Return, REV-1500, must be ﬁled for every decedent with property that may be subject

to Pennsylvania inheritance tax.

• The personal representative (executor or administrator appointed by the Register of Wills) of a decedent’s

estate is the person responsible for disclosing property of the decedent and ﬁling the inheritance tax return.

If no personal representative is appointed, if the personal representative does not ﬁle a return, or if the personal

representative ﬁles a return but does not disclose all transferred property, then the transferee of property should ﬁle

an inheritance tax return.

• A transferee is any person to whom property from the decedent is transferred, including surviving joint

tenants, beneﬁciaries and heirs. The transferee must disclose any asset in which or of which he or she

receives any ownership, interest, income, possession or enjoyment, whether present or future, and whether

in trust or otherwise. Separate returns are not to be ﬁled by transferees for property included in a personal

representative’s return. WHEN TO FILE An inheritance tax return should be ﬁled as soon as possible after a

decedent’s death, but no later than nine months from the decedent’s date of death. Failure to ﬁle may subject

the estate to a penalty of 25 percent of the tax ultimately found to be due or $1,000, whichever is less.

WHERE TO FILE

An inheritance tax return must be ﬁled in duplicate with the Register of Wills of the county in which

the decedent was a resident at the time of death.

PAYMENT OF TAX

Tax on property transferred is due within nine months of the decedent’s death.

A ﬁve percent discount is allowed on the tax paid within three calendar months of a decedent’s death. No

discount applies to any amount that may be subsequently refunded.

A pre-payment of tax may be made at the Register of Wills before the REV-1500 is ﬁled. In writing, supply the

All checks must be made payable to “Register of Wills, Agent” and presented to the Register of Wills of the

county where the decedent resided.

TAX RATES

The rates for Pennsylvania inheritance tax as of July 1, 2000 are as follows:

• 0 percent on transfers to a surviving spouse or to a parent from a child aged 21 or younger*;

• 4.5 percent on transfers to direct descendants and lineal heirs;

• 12 percent on transfers to siblings; and

• 15 percent on transfers to other heirs, except charitable organizations, exempt institutions and government entities

exempt from tax. Tax rates for dates of death prior to July 1, 2000 can be found by visiting www.revenue.pa.gov.

NOTE: Parental Transfers to Minor Children: 0 percent - For dates of death on or after January 1, 2020, transfers to or

for the use of a child twenty-one years of age or younger from a natural parent, an adoptive parent or a stepparent of

the child are subject to a zero-tax rate.

INTEREST

Interest on overdue inheritance tax is charged nine months and one day from the date of death, to the date of payment.

Interest rates are detailed in form REV-1611, available at www.revenue.pa.gov.

An online interest and penalty calculator is also available on the department’s online portal, mypath.pa.gov.

FORMS

Inheritance tax forms, schedules and instructions are available at www.revenue.pa.gov. You may also order any

Pennsylvania tax form or schedule by calling, toll-free 1-800-362-2050.

Schedules A through G are used to report assets of the estate. Schedules H and I are used to report debts and

deductions of the estate. Schedules K through O are used to report life estates, remainders and future interest

compromises.

Instructions for each schedule are available on the department’s website. The REV-1500, Pennsylvania

Inheritance Tax Return and corresponding instructions for more speciﬁc information are available on the

department’s website.

TAXABLE PROPERTY

In general, any items the decedent owned solely, jointly or in trust are taxable unless speciﬁcally excluded from

taxation by law. For additional information see instructions for Schedules A, B, C, D, E, F and G for descriptions of

taxable property.

ACTIVE-DUTY MILITARY MEMBER EXEMPTION

Eective for estates of decedents dying on or after September 6, 2022, personal property that is transferred from the

estate of a serving military member who has died as a result of an injury or illness received while on active duty in the

armed forces, a reserve component or the National Guard, is exempt from inheritance tax.

VALUATION

Generally, valuation is based on the fair market value as of the decedent’s date of death. Special rules apply for

valuation of life estates and future interests created by a decedent. See the instructions for Schedules K and M for

more information.

Special rules also apply to the taxation of farmland and small business interests. See the instructions for Schedules

AU and C-SB for further information concerning these provisions.

NOTE: Pennsylvania does not utilize or accept a six-month alternate valuation date like the federal government does.

DEDUCTIONS

Funeral expenses, administrative costs and debts owed by the decedent at the time of death are deductions allowed

against the inheritance tax liability. See the instructions for Schedules H and I for descriptions of allowable deductions.

APPRAISEMENT, ALLOWANCE OR DISALLOWANCE

OF DEDUCTIONS AND ASSESSMENT OF TAX

After an inheritance tax return is ﬁled, the Department of Revenue issues a notice setting forth its valuation of

the estate’s assets, allowable deductions and tax due. Depending on the complexity of the return, it can take

three to six months from the date a return is ﬁled with the Register of Wills for processing to be completed.

PROTEST, NOTICE OR APPEAL

Any party with interest in the estate, who is not satisﬁed with a department determination of estate value, allowance

or disallowance of inheritance tax deductions and/or tax liability, may appeal within 60 days of receipt of the notice to

which objection is made. Appeal information is available at www.boardofappeals.state.pa.us.

FREQUENTLY ASKED QUESTIONS

Review Revenue’s Online Customer Service Center at www.revenue.pa.gov for answers to

frequently asked questions. There you may also submit questions speciﬁc to an estate to a customer

service representative.