PA Inheritance Tax vs. Federal Estate Tax
By Sean Quinlan, Esq. · Updated January 15, 2025
Two separate death taxes apply to Pennsylvania estates. They have different bases, different rates, and different payers.
Federal estate tax
Paid by the estate on the gross estate above $13.99M (2025). Top rate 40%. Filed on Form 706 within 9 months of death.
PA inheritance tax
Paid by the beneficiary (functionally by the estate before distribution). No exemption — applies at the first dollar at 0/4.5/12/15% by relationship.
How they interact
Both can apply to the same estate. The PA tax is deductible on the federal 706.
This article is general information about Pennsylvania law as of the update date above. It is not legal advice for your situation and does not create an attorney-client relationship. For advice on your specific facts, please schedule a consultation.
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