✓ Verified June 2026
This guide explains Pennsylvania estate tax and inheritance tax in plain English — whether Pennsylvania taxes your estate, who pays, the exact exemptions, and how the federal estate tax fits in for 2026. All figures verified as of June 2026.
In This Pennsylvania Guide:
Pennsylvania Estate & Inheritance Tax at a Glance
Here is exactly how Pennsylvania estate tax and inheritance tax work:
| Does Pennsylvania have an estate tax? | NO |
| Does Pennsylvania have an inheritance tax? | YES |
| Inheritance tax — who pays | Pennsylvania imposes an inheritance tax on property transferred at death, paid by each beneficiary based on their relationship to the decedent. Rates: 0 percent for surviving spouses; 4.5 percent for lineal descendants (children, grandchildren, parents, grandparents) and spouses/widows/widowers of a deceased child; 12 percent for siblings; 15 percent for all other beneficiaries including nieces, nephews, friends, and non-exempt entities. There is no exemption threshold — the tax applies from the first dollar of inherited property. A 5 percent discount is available if the tax is paid within 3 months of the decedent’s death. The tax becomes delinquent 9 months after death. |
| Federal estate-tax exemption (2026) | 15000000 per individual (30000000 per married couple using portability). The One Big Beautiful Bill Act (Public Law 119-21, signed July 4, 2025) made the increased TCJA exclusion amount permanent and set the basic exclusion amount at 15000000 for 2026, up from 13990000 in 2025. The previously scheduled sunset to approximately 7000000 in 2026 did not take effect. |
Who is exempt from Pennsylvania inheritance tax: Surviving spouses pay 0 percent. Transfers to charities pay 0 percent. Transfers of property from a child aged 21 or younger to a natural parent, adoptive parent, or stepparent are taxed at 0 percent. Certain farmland and agricultural property may qualify for special exemptions under 72 PS 9111. Life insurance proceeds payable to a named beneficiary (not the estate) are generally exempt.
Spousal portability (federal): Yes. Federal law allows a surviving spouse to use the deceased spouse’s unused exclusion amount (DSUE). A married couple may effectively shelter up to 30000000 in 2026. The executor of the first spouse’s estate must file IRS Form 706 to elect portability even if no federal estate tax is owed.
Gift tax: Pennsylvania does not impose a separate state gift tax. However, gifts made within 1 year of death (transfers in contemplation of death) are pulled back into the estate and subject to Pennsylvania inheritance tax under 72 PS 9107. The federal gift tax annual exclusion for 2026 is 19000 per recipient.
Who Actually Owes Estate Tax in Pennsylvania
Pennsylvania has no estate tax, and the federal estate tax exemption of 15000000 means most Pennsylvania families will owe no federal estate tax. However, Pennsylvania’s inheritance tax applies from the first dollar with no exemption threshold, so nearly every estate that passes property to non-spouse beneficiaries will owe some inheritance tax.
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Families with significant assets passing to children (4.5 percent), siblings (12 percent), or non-relatives (15 percent) may benefit from consulting a licensed attorney or tax professional about strategies such as lifetime gifting, irrevocable trusts, or spousal transfers.
Other Pennsylvania estate/inheritance tax rules: Pennsylvania inheritance tax has no exemption threshold and applies from the first dollar, unlike most states with inheritance taxes that provide a minimum exemption. Gifts made within 1 year of death are subject to inheritance tax. Agricultural property and family farms may qualify for special valuation under 72 PS 9111. The 5 percent discount for early payment within 3 months is a unique incentive.
Pennsylvania is one of only 6 states that impose an inheritance tax. The tax is administered by the Pennsylvania Department of Revenue, and returns are filed with the Register of Wills in the county where the decedent resided.
Understanding Pennsylvania Estate and Inheritance Tax
Worrying about Pennsylvania estate tax is common, but most families owe nothing. Whether Pennsylvania estate tax applies depends on the size of the estate and whether Pennsylvania levies an estate tax, an inheritance tax, or neither. The table above shows the exact exemptions and rates, plus the federal exemption and its 2026 change, so you can see where you actually stand on Pennsylvania estate tax.
If your estate is large enough that Pennsylvania estate tax could apply, a licensed tax professional in your state can help you plan.
Official Pennsylvania Sources & Resources
- Pennsylvania Department of Revenue: https://www.pa.gov/agencies/revenue/resources/tax-types-and-information/inheritance-tax
- Pennsylvania Estate Tax Statute: https://www.palegis.us/statutes/consolidated/view-statute?txtType=HTM&ttl=72
- Internal Revenue Service — Estate Tax: irs.gov
- Cornell Legal Information Institute: law.cornell.edu/wex
This Pennsylvania estate-tax guide was last verified against official sources in June 2026. Tax laws and exemptions change yearly — verify with your state revenue department or a licensed tax professional.
More Pennsylvania Wills & Probate Guides
- Pennsylvania Wills & Estate Planning
- Pennsylvania Probate Process
- Dying Without a Will in Pennsylvania
- Pennsylvania Small Estate Affidavit
- Pennsylvania Living Trust
- Probate Cost Calculator
- All 51 States
Disclaimer: This guide is informational only and is not legal or tax advice. Estate, probate, and tax laws change and vary by state and county. Verify current rules and dollar figures with your state’s court, statute, or a licensed attorney or tax professional before acting. For urgent matters like an active probate or a tax deadline, consult a licensed professional in your state right away.