Pennsylvania Inheritance Tax Rates
Pennsylvania inheritance tax rates are based upon each beneficiary's or heir's family relationship with the decedent. Once determined, the rate is applied to the total value of all property being transferred to the members of each individual "rate class."
The four main rate classes are:
Spouse : 0%
Lineal descendant : 4.5%
Sibling : 12%
Collateral beneficiary : 15%
The marriage to the decedent must be valid as of the day of his or her death for the surviving spouse to be included in this class.
This includes all people that can be traced by a straight line above or below the decedent on a family tree, such as grandparents, parents, children, grandchildren, and so on. This class also includes a child's spouse (a son-in-law or daughter-in-law) and step-children.
Any person who has at least one parent in common with the decedent is in this class, which are brother and sisters, as well as half-brothers and half-sisters.
Any person or entity that cannot be included in one of the other classes is taxed as a collateral, except qualified charitable organizations.
Also, all property transferred to a parent or step-parent from a child who is less than 21 years old at the time of death is also taxed at the rate of zero percent.
See: Pennsylvania Inheritance Tax, Generally; Federal Estate Tax, Generally; Pennsylvania Estate Tax, Generally