What is the Inheritance Tax rate in Pennsylvania?
The tax rate for Pennsylvania Inheritance Tax is 4.5 percent for transfers to direct descendants (lineal heirs), 12 percent for transfers to siblings and 15 percent for transfers to other heirs (except charitable organizations, exempt institutions and governmental entities which are exempt from tax). Property owned jointly between husband and wife is exempt from Inheritance Tax. Since 1995, property inherited by a surviving spouse, or from a child 21 or younger by a parent, is taxed at a rate of 0 percent. Who are lineal heirs and lineal descendents for the purpose of Inheritance Tax? Lineal heirs are grandfathers, grandmothers, fathers, mothers and their children. “Children” included natural children (whether or not they have been adopted by others), adopted children and step- children. Lineal descendants include all children of the natural parents and their descendents (whether or not they have been adopted by others), adopted descendents and their descendents and step-descendents. I
