Inheritance Tax

In Pennsylvania there is no inheritance tax on property itself but rather on the privilege of receiving property from the decedent. The tax rates are as follows:

0% on transfers to spouses and charities
4.5% on transfers to “lineal” descendants (parents, grandparents, children, sons and daughters-in-law)
12% on transfers by siblings
15% on transfer to any other person.

A discount of 5% of tax due is allowed for whatever portion of the tax is paid within three (3) months of the decedent’s death.

Inheritance Tax Filings and/or payments must be made in the county where the deceased resided.

Properties jointly-held by husband and wife is considered non-probate assets in which no inheritance tax is imposed on the surviving spouse. Jointly-held assets with individual(s) other than a spouse are generally subject to tax.

Filing requisites for Inheritance Taxes are as follows:
ALL Inheritance Tax Returns MUST BE FILED IN DUPLICATE.
Inventories and Inheritance Tax Returns are due nine months from date of death.
All Inheritance Tax Returns should include at least the following schedules:
1. Recapitulation (Cover) Sheet
2. Schedule H (debts and deductions)
3. Schedule J (beneficiaries)
4. Any additional schedule(s) pertinent to the estate
5. Copy of Will (if any)
6. Any explanatory documentation of Department of Revenue (deeds, trusts, appraisals, settlement sheets, etc. may be attached to the return for forwarding to Harrisburg)

All Inheritance Tax payment checks must be made payable to: “Register of Wills, Agent”

County Annex Office Building
300 North Center Avenue
Somerset, PA 15501
Somerset County Courthouse
111 East Union St.
Somerset, PA 15501