Pennsylvania Inheritance Tax

Pennsylvania does not impose an estate tax and instead is one of the few states that imposes a tax on the inheritance you receive. An estate tax is a tax imposed on the total value of the estate, while an inheritance tax is imposed on the amount that a given beneficiary receives. The percentage of the tax is dependent upon the beneficiary’s relationship to the decedent. Learn more about the Pennyslvania Inheritance Tax here.

If you fail to pay the inheritance tax, you can be subject to fines and penalties. For example, if you try to sell a home you inherited, but the inheritance tax was never paid, the title company will withhold an estimated amount of the tax owed from the sale proceeds. The only way the title company can release the funds is if you properly file, and the PA Department of Revenue accepts, an inheritance tax return.

However, if you pay the inheritance tax within 3 months, the PA department of revenue will allow a 5% discount.

If you need to file a PA inheritance tax return, contact the Law Office of Kiran Mahal.