Pennsylvania does not impose inheritance tax on transfers between spouses. This means that when one spouse passes away and leaves assets to the surviving spouse, no inheritance tax is levied on that transfer. This provision is often referred to as the “spousal exemption” or “marital deduction” and is designed to provide favorable treatment for married couples.
While spouses receive a 0% inheritance tax rate, other beneficiaries have varying tax rates. Children and grandchildren receive a tax rate of 4.5%, siblings are 12% and all other heirs, excluding charities and exempt institutions, are 15%.
It’s important to note that inheritance tax laws can change over time, so it’s advisable to consult with a qualified attorney and tax professional when discussing estate administration and taxes.
If you have any questions about the topic discussed in this article, or any tax or estate law matter, please give us a call at Bononi & Company 724-832-2499.