Estate Planning & Administration
Pennsylvania Inheritance Tax: Complete Guide
Tax Rates by Relationship
- Surviving spouse: 0% (completely exempt)
- Children, grandchildren, parents: 4.5%
- Siblings: 12%
- All other individuals (nieces, nephews, friends, unmarried partners): 15%
- Charities and government entities: 0%
Key Deadlines
- 3-month discount: Pay within 3 months of death for a 5% discount on the total tax
- 9-month filing deadline: The REV-1500 return is due within 9 months
- Interest: Accrues on unpaid tax after 9 months at 6% per annum (subject to change)
The REV-1500 Return
The Pennsylvania Inheritance Tax Return (Form REV-1500) is the central document in every estate administration. It requires detailed schedules for each category of asset:
- Schedule A: Real estate — reported at fair market value, not assessed value. The Department checks your value against the county's assessed value multiplied by the Common Level Ratio (CLR) factor. In Bucks County, the current CLR factor is 17.06 — meaning a property assessed at $20,000 has a computed value of $341,200. If you report a lower value without a professional appraisal to support it, expect a notice of deficiency. Always get a date-of-death appraisal.
- Schedule B: Stocks and bonds
- Schedule C: Closely held corporation, partnership, or sole proprietorship interests
- Schedule D: Mortgages and notes receivable
- Schedule E: Cash, bank deposits, and miscellaneous personal property (including life insurance payable to the estate)
- Schedule F: Jointly-owned property
- Schedule G: Inter-vivos (lifetime) transfers, trusts, and miscellaneous non-probate property (including retirement accounts and life insurance with named beneficiaries)
- Schedule H: Funeral expenses and administrative costs
- Schedule I: Debts of decedent, mortgage liabilities, and liens
- Schedule J: Beneficiaries — taxable and non-taxable distributions, including charitable and governmental bequests
Required exhibits include the death certificate, the will (if any), real estate appraisals, and date-of-death account statements.