13-05-2025
Pennsylvania bill looks to eliminate ‘death tax'
PENNSYLVANIA (WTAJ) — A Pennsylvania Representative announced the reintroduction of legislation that looks to eliminate the Pennsylvania Inheritance Tax.
Currently, the Pennsylvania tax is imposed as a percentage of the value of a decedent's estate transferred to beneficiaries by will, according to Rep. Valerie Gaydos' bill. The tax rate depends on the relationship of the heir to the decedent.
The rates for the inheritance tax are:
0 percent on transfers to a surviving spouse or to a parent from a child aged 21 or younger
4.5 percent on transfers to direct descendants and lineal heirs
12 percent on transfers to siblings
15 percent on transfers to other heirs, except charitable organizations, exempt institutions and government entities exempt from tax
Gaydos argued in her bill that the federal inheritance/estate tax is applied to the transfer of property to an heir after the passing away of the original owner, with the federal tax calculated based on the fair market value. However, unlike in Pennsylvania, the federal estate tax has a general exclusion amount. In 2023, the exclusion amount was increased to $12.92 million.
'The elimination of this tax at the state level will protect against double taxation, ensure that inheritance goes to the family or heirs it was meant to go to and help preserve individuals who receive an inheritance from ending up with a tax bill at a time when they are also mourning the loss of their loved one,' The bill reads.
The legislation is currently in the Pennsylvania House Finance Committee. If passed, it will then move through the committee and to the House floor for a vote before moving to the Senate.
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