PA Executor Guide
What Assets Are Subject to PA Inheritance Tax?
As executor, one of your first jobs is taking inventory — and knowing which of those assets the tax actually reaches.
Pennsylvania inheritance tax is based on the value of the assets that pass at death, then taxed at a rate set by the heir's relationship to the decedent. Before you can calculate anything, you need to know what goes on the inventory — so here's the working list.
Assets that ARE generally subject to PA inheritance tax
| Asset | Notes |
|---|---|
| Real estate in Pennsylvania | The decedent's home and any other PA real property, at fair market value as of the date of death. |
| Bank & savings accounts | Checking, savings, CDs, money market accounts held by the decedent. |
| Stocks, bonds & brokerage accounts | Investments held individually, valued at the date of death. |
| Vehicles & valuable personal property | Cars, boats, jewelry, collectibles, art, and similar tangible property. |
| Business interests | Sole proprietorships, partnership interests, and shares in a closely held company (a family-business exemption may apply in limited cases). |
| Jointly held (non-spouse) property | Generally the decedent's fractional share is taxable. |
Assets that are generally EXEMPT
- Life insurance proceeds. Insurance on the decedent's life is generally exempt — whether it goes to a named beneficiary or to the estate. (A product that functions as an annuity rather than true life insurance can be treated differently.)
- Most retirement accounts. IRAs and many 401(k)-type plans are often not subject to PA inheritance tax when the decedent was under 59½ or couldn't have withdrawn the funds without penalty during life. The answer depends on the plan and the decedent's age.
- Property owned jointly between spouses. Fully exempt.
- Transfers to a surviving spouse (0%) and to qualified charities and government (exempt).
- Certain farmland and agricultural property passing to eligible family members (deaths after June 30, 2012).
- A service member's personal property where death resulted from a service-related injury or illness (effective September 6, 2022).
What you can deduct
The tax is on the net estate, so certain costs reduce the taxable value — typically funeral expenses, estate administration costs, and the decedent's unpaid debts. Keeping clean records of these from day one directly lowers the tax, which is one reason a good expense log is part of every executor's toolkit.
Turn your inventory into a filing-ready system
The PA Executor Compliance Kit gives you the asset inventory, expense log, REV-1500 deadline calendar, and a court-ready records system — so nothing taxable (or deductible) slips through.
Open the free PA calculator → See the PA Compliance KitFree: the Executor's First 30 Days checklist
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