Short answer: Pennsylvania does not have a separate state estate tax. Instead, Pennsylvania charges an inheritance tax on what each beneficiary receives, at rates from 0% to 15% depending on their relationship to the person who died. Only very large estates also owe the federal estate tax, which in 2026 applies to estates above $15 million per person.
People often use “estate tax” and “inheritance tax” interchangeably, but in Pennsylvania the difference matters. This guide explains which taxes apply, who pays, and the deadlines executors need to know.
Does Pennsylvania have an estate tax?
No. Pennsylvania does not impose a separate estate tax based on the overall size of the estate. The tax most Pennsylvania families deal with is the Pennsylvania inheritance tax, which applies to estates of every size, including small ones.
Estate tax vs. inheritance tax
- Estate tax is based on the total value of everything the person owned at death. The federal government charges it only on estates above a large exemption amount.
- Inheritance tax is based on who receives the property. Pennsylvania taxes transfers to children, siblings and others at different rates, and taxes transfers to a surviving spouse at 0%.
Pennsylvania inheritance tax rates
- 0% to a surviving spouse, and to a parent from a child aged 21 or younger
- 4.5% to children, grandchildren and other lineal descendants, and to parents and grandparents
- 12% to brothers and sisters
- 15% to other heirs, such as nieces, nephews, cousins and friends
Transfers to qualifying charities are generally exempt, and there are exemptions for some life insurance, family farms and small family businesses. Estimate the tax with our free PA inheritance tax calculator, and read our full guide to Pennsylvania inheritance tax.
When is Pennsylvania inheritance tax due?
The tax is due nine months after the date of death. If it is paid within three months of death, the estate receives a 5% discount on the tax paid. The executor reports the tax on the Pennsylvania inheritance tax return, Form REV-1500, filed with the Register of Wills. Our executor checklist and deadline calculator shows these dates for a specific estate.
The federal estate tax
The federal estate tax applies only when the taxable estate is larger than the federal exemption. For people who die in 2026, the exemption is $15 million per person, under a law passed in July 2025. A married couple can often shelter up to $30 million with proper planning. Most Pennsylvania estates fall well below this amount, but families with significant land, businesses or mineral interests should still check.
Does Pennsylvania have a gift tax?
No. Pennsylvania does not have a gift tax. However, gifts made within one year of death can be pulled back into the estate for Pennsylvania inheritance tax, to the extent they exceed $3,000 per recipient. The federal gift tax annual exclusion is $19,000 per recipient in 2026.
What about mineral rights and royalties?
Oil and gas interests are property and are subject to Pennsylvania inheritance tax like any other asset. They must be valued as of the date of death, which often requires an appraisal. Our mineral rights value calculator gives a rough starting point, and our mineral rights attorneys can help with transfers to heirs.
Ways to reduce Pennsylvania inheritance tax
- Leave property to a surviving spouse, which is taxed at 0%
- Pay within three months of death to receive the 5% discount
- Use exemptions that apply to life insurance, qualifying farms and family businesses
- Make lifetime gifts more than one year before death, where appropriate
- Name charities as beneficiaries
Our guide to how to avoid inheritance tax in PA explains each strategy. Each strategy has trade-offs, so it is worth reviewing them as part of an estate plan.
Frequently asked questions
Is there an estate tax in Pennsylvania in 2026?
No. Pennsylvania has no separate estate tax. It has an inheritance tax, and only estates above $15 million per person face the federal estate tax in 2026.
Who pays Pennsylvania inheritance tax?
The tax is generally paid from the estate by the executor, although beneficiaries are ultimately responsible for the tax on what they receive unless the will says otherwise.
Is a house inherited by a child taxed in Pennsylvania?
Yes. A house that passes to a child is generally taxed at 4.5% of its value. A house owned jointly by spouses passes to the survivor without tax.
Do I pay Pennsylvania inheritance tax if the person lived in another state?
Pennsylvania can tax real estate and tangible property located in Pennsylvania, even if the person lived elsewhere. Pennsylvania residents’ intangible property, such as bank accounts, is taxed wherever it is held.
Settling an estate or planning ahead? Heather N. Kostrub helps families with probate and estate administration in Washington County and the Pittsburgh area. Call (304) 982-1586.