HARRISBURG – The PA Senate Finance Committee approved a bill impacting PA’s inheritance tax. Currently, PA is one of only six states that still imposes an inheritance tax. A surviving spouse or a child age 21 or younger to a parent pay no inheritance tax; however, transfers to direct descendants and lineal heirs such as children, grandchildren, and parents is taxed at 4.5%. The inheritance tax is 12% for siblings and 15% for other heirs, such as friends, nieces and nephews, and other relatives. Bill supporters say families should not have to concern themselves with paying an additional tax to the state while dealing with the loss of a family member. To help alleviate such a burden, Senate Bill 100 would exempt the first $100,000 from being subject to the inheritance tax for family members.
