What are the PA Inheritance Tax Changes?

by Attorney Ashley Securda

Previously, when a parent passed away and if the child inherited anything from the parent, the child had to pay 4.5% on the value of the asset for Pennsylvania Inheritance Tax. For example, if a parent died with $100,000.00 in a bank account, the child would owe $4,500.00 in PA Inheritance Tax or 4.5% of $100,000.00.

Effective January 1, 2020, any child under 21 that inherits assets from a parent may no longer have to pay inheritance tax on the assets he/she inherits. Pursuant to Act 13 of 2019, the new law eliminates any tax due when an asset is transferred to or for the use of a child twenty-one (21) years of age or younger from a natural parent, adoptive parent or stepparent. This does NOT include grandparents.

Other Pennsylvania inheritance tax rates are as follows:

  • Transfers from an estate to a spouse: 0%
  • Transfers from an estate to a grandchild or child over 21: 4.5%
  • Transfers from an estate to a sibling: 12%
  • Transfers to anyone else (nieces, nephews, cousins, friends, significant other, etc.) 15%
  • Transfers to charitable organizations: exempt: 0%.For more information call our office at (570) 622-5933.

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