How Much Is PA Inheritance Tax on a House?
How Much Is PA Inheritance Tax on a House?
Pennsylvania is one of the few states with an inheritance tax, and it applies to real estate. How much depends on who inherits.
The rates (PA Department of Revenue)
Surviving spouse: 0%
A parent inheriting from a child 21 or younger: 0%
Children, grandchildren and other lineal heirs: 4.5%
Brothers and sisters: 12%
Other heirs (nieces, nephews, friends): 15%
Property owned jointly between spouses is exempt.
The deadlines
The tax is due at death.
It becomes delinquent nine months after the date of death.
Pay within three months and you get a 5% discount.
A quick example (my math, round numbers)
Mom leaves a house worth $250,000 to her two kids.
- 4.5% of $250,000 = $11,250 for the house’s share of the tax.
- Paid within 3 months, the 5% discount saves about $562.
The estate’s inheritance tax return can reduce the taxable amount with allowable deductions (debts and certain expenses, for example). Your estate attorney or accountant handles the actual return. Use this as a ballpark only.
Do I owe it if I sell the house?
Inheritance tax is based on the inheritance, not on whether you sell. Selling the house is separate. It can matter for capital gains, though, which is a different tax. See my post on inherited-house capital gains.
What the house’s value is based on
Generally the value at the date of death. That’s why getting a solid value early matters. I can pull a market analysis. Your attorney may also want a formal appraisal.
Your options for the house
Keep it, rent it, list it, or sell it as-is. I go through each one on my inherited-house page. Call or text Collin at 717-991-5085.
In Pennsylvania, you file with the Register of Wills in the county where the person lived. For our area, that office is in Carlisle (Cumberland), Harrisburg (Dauphin), York (York) or Lancaster (Lancaster).
FAQ
What is the inheritance tax rate on a house in Pennsylvania?
0% for a surviving spouse (and for a parent inheriting from a child 21 or younger), 4.5% for children and other lineal heirs, 12% for siblings, and 15% for other heirs.
When is Pennsylvania inheritance tax due?
It’s due at the date of death and becomes delinquent nine months after. Paying within three months earns a 5% discount.
Is a house owned jointly by spouses subject to PA inheritance tax?
No. Property owned jointly between spouses is exempt from Pennsylvania inheritance tax.
Sources:
- PA Department of Revenue, Inheritance Tax
Collin Boyer is a real estate agent with Real of Pennsylvania, serving all of Pennsylvania and Maryland. Licensed in Pennsylvania (RS353567) and Maryland (5014481). Call or text 717-991-5085. Real of Pennsylvania · (717) 344-5577. Equal Housing Opportunity. This post is general information, not legal or tax advice.