HARRISBURG – Two state lawmakers introduced legislation to eliminate PA’s Inheritance Tax, better known as the “Death Tax.” House Bill 1148 is sponsored by Allegheny County Rep. Valerie Gaydos and Cumberland County Rep. Greg Rothman. PA is one of only six states in the nation with an inheritance tax. PA’s inheritance tax is imposed as a percentage of the value of a decedent’s estate transferred to beneficiaries by will, heirs by intestacy, and transferees by operation of law. The tax rate depends on the relationship of the heir to the decedent. The rates for state’s inheritance tax are 0% on transfers to a surviving spouse or to a parent from a child 21 years or younger; 4.5% on transfers to direct descendants and lineal heirs; 12% on transfers to siblings; and 15% on transfers to other heirs, except charitable organizations, exempt institutions, and government entities exempt from tax. House Bill 1148 has been referred to the PA House Finance Committee for consideration.

REP. GREG ROTHMAN

REP. VALERIE GAYDOS