The PA Inheritance Tax 5% Discount

Pennsylvania offers a 5% discount on any inheritance tax paid within three months of the date of death. On a $500,000 estate at the 4.5% lineal rate, that's $1,125 back to the family.

How it works

Pay an estimated amount before the 3-month deadline; the final REV-1500 reconciles the prepayment. Overpayments are refunded.

Practical steps

Within 60 days of death, the executor should pull statement balances, value real estate, and remit an estimated payment with a Form REV-1313 worksheet.

Common mistakes

Waiting for the will to be probated, underpaying because retirement accounts weren't included, or paying late because the executor wasn't told the deadline.