HARRISBURG – Allegheny County Rep. Valerie Gaydos has introduced legislation to repeal PA’s Inheritance Tax, also known as the “death tax.” Gaydos believes this is necessary to ease the financial burden on families during times of loss. Eliminating the inheritance tax will allow individuals to pass on their hard-earned assets without penalty during an already difficult time. House Bill 1394 would get rid of the tax by deleting the law that gives the state the authority to collect it. PA is one of only six states that still imposes an inheritance tax. PA’s Inheritance Tax is assessed on a decedent’s estate transferred to beneficiaries, with rates based on the relationship between the decedent and the heir: 0% on transfers to a surviving spouse or to a parent from a child 21 or younger; 4.5% on transfers to direct descendants and lineal heirs; 12% on transfers to siblings; and 15% on transfers to other heirs (excluding charitable organizations, exempt institutions, and government entities). The bill has been referred to the House Finance Committee for consideration.
REP. VALERIE GAYDOS