Spousal Exemption from PA Inheritance Tax

The single biggest planning tool in Pennsylvania inheritance tax is the spousal exemption: a 0% rate on transfers to a surviving spouse under 72 P.S. § 9111(m).

What qualifies

Any outright transfer to a legally married spouse — by will, beneficiary designation, joint titling, or trust distribution — qualifies.

Common-law marriage

Pennsylvania abolished common-law marriage for relationships formed after January 1, 2005. Older common-law marriages remain valid.

QTIP and marital trusts

Properly drafted marital trusts qualify if the spouse receives all income for life and a QTIP election is made on the REV-1500.

Family exemption

The $3,500 family exemption under 20 Pa.C.S. § 3121 is layered on top, available to the surviving spouse or household members.