Pennsylvania Form REV-1500 Inheritance Tax Guide (2026): 4.5%, 12% & 15% Rates, Schedule H Deductions & 3-Month 5% Discount
Line-by-line 2026 Pennsylvania Inheritance Tax (Form REV-1500) guide: 4.5% lineal vs. 12% sibling rates, 90-day 5% early payment discount, and $3,500 family exemption.
2026 Statutory Briefing (Commonwealth of Pennsylvania (All 67 County Registers of Wills)): Pennsylvania imposes a flat, dollar-one Inheritance Tax on Form REV-1500 based strictly on the beneficiary’s relationship to the decedent under 72 P.S. § 9116: 0% for surviving spouses and charities, 4.5% for lineal heirs (children, grandchildren, parents), 12.0% for siblings, and 15.0% for all other collateral heirs (nieces, nephews, unmarried partners, friends). Under 72 P.S. § 9142, paying the estimated tax to the county Register of Wills within 3 calendar months of the date of death earns an automatic 5.0% statutory discount on the amount paid—reducing the effective lineal rate from 4.50% to 4.275% and the sibling rate from 12.00% to 11.40%.
Pennsylvania Form REV-1500 Inheritance Tax, Schedule Deductions & 3-Month 5% Discount Calculator (2026)
Models line-by-line Pennsylvania Inheritance Tax return (Form REV-1500) schedules: applies the $3,500 Family Exemption (20 Pa.C.S. § 3121), Schedule H funeral/administration deductions, and exact statutory tax rates (0% spouse/charity, 4.5% lineal descendants, 12% siblings, 15% collateral heirs), plus the 5.0% discount for payments made within 3 months of death.
2026 Statutory Benchmark Matrix & Comparative Schedule
The quantitative benchmark schedule below models the exact 2026 statutory rates, filing thresholds, and net cash-flow outcomes verified against 72 P.S. § 9116 (Tax Rates) & § 9142 (5% Discount) · 20 Pa.C.S. § 3121 ($3,500 Family Exemption) · PA DOR Form REV-1500:
| Beneficiary Class (Form REV-1500) | Statutory Tax Rate (9-Month Par) | Effective Rate With 3-Month 5% Discount | Tax on $800,000 Net Estate (Par) | Tax on $800,000 Net Estate (3-Mo Discount) | Cash Saved via 90-Day Prepayment |
|---|---|---|---|---|---|
| Surviving Spouse / 501(c)(3) Charity / Parent of Child ≤21 | 0.00% | 0.00% | $0 | $0 | 100% Statutorily Exempt |
| Class A Lineal Heirs (Children, Grandchildren, Parents) | 4.50% | 4.275% | $36,000 | $34,200 | $1,800 Saved (20%+ Annualized ROI) |
| Siblings (Brothers, Sisters, Half-Siblings) | 12.00% | 11.400% | $96,000 | $91,200 | $4,800 Saved |
| Collateral Heirs (Nieces, Nephews, Unmarried Partners, Friends) | 15.00% | 14.250% | $120,000 | $114,000 | $6,000 Saved |
1. How the 3-Month 5% Early Payment Discount Works Under 72 P.S. § 9142
While the formal Pennsylvania Inheritance Tax Return (Form REV-1500) and final payment are due 9 calendar months after the decedent’s date of death, 72 P.S. § 9142 grants a 5.0% discount on any inheritance tax paid within 3 calendar months of death. Importantly, the executor or beneficiary does NOT need to have completed the entire Form REV-1500 return by Month 3 to lock in the discount: you can remit an estimated prepayment check to the County Register of Wills (as Agent for the PA Department of Revenue) on or before the 3-month anniversary, and every dollar paid within that window is credited at 105.263% of face value (a 5% discount on the tax liability covered).
Financially, paying 6 months early (Month 3 instead of Month 9) to capture a guaranteed 5.0% tax reduction equates to a risk-free 10.0%+ annualized after-tax return—more than double the after-tax yield of 6-month US Treasury bills.
2. Maximizing Form REV-1500 Deductions: Schedule H, Schedule I & the $3,500 Family Exemption
Pennsylvania Inheritance Tax is levied on the "Net Clear Value" of the estate after deducting allowable expenses on Schedule H (Funeral Expenses and Administrative Costs—including executor commissions, probate attorney fees, appraisal fees, and Register of Wills filing fees) and Schedule I (Debts of the Decedent—including mortgages, medical bills, credit cards, and final year property/income taxes).
In addition, under 20 Pa.C.S. § 3121, a child or parent who resided in the same household as the decedent at the time of death is entitled to claim the $3,500 Family Exemption on Schedule H, reducing the taxable estate base before the 4.5% rate is applied.
3. Assets Exempt From Pennsylvania Inheritance Tax (Life Insurance & Pre-59½ 401k/IRA Rules)
Several major asset classes are 100% exempt from Pennsylvania Inheritance Tax on Form REV-1500: (1) Life insurance proceeds—whether payable to a named individual beneficiary or to the estate (72 P.S. § 9111(d)); (2) Real estate and tangible personal property physically located outside Pennsylvania (for a PA resident decedent); (3) Jointly held property between husband and wife (tenancy by the entirety); and (4) Retirement accounts (401(k), 403(b), Traditional/Roth IRA) where the decedent died before age 59½ and had no right to possess or withdraw the funds without a substantial federal penalty.
Note that if the Pennsylvania decedent was age 59½ or older at death, Traditional and Roth IRAs and 401(k) accounts ARE subject to the 4.5%, 12%, or 15% PA Inheritance Tax on Schedule E/G (even though distributions are 0% exempt from PA state income tax).
CPA & Attorney Audit Verification Checklist (2026 Tax Year)
- Verify Governing Statutory Deadlines: Cross-check your exact filing window under 72 P.S. § 9116 (Tax Rates) & § 9142 (5% Discount) · 20 Pa.C.S. § 3121 ($3,500 Family Exemption) · PA DOR Form REV-1500 and download our
.icsdeadline calendar inside the interactive calculator above. - Stress-Test Marginal Cliffs vs. Progressive Brackets: Use the ⚖️ Pin Scenario A to Compare button inside the simulator to evaluate how a $10,000 to $250,000 shift in income, basis, or property value alters your net after-tax liability.
- Archive Parameterized Documentation: Click ✉️ Email Worksheet to Me / CPA or 📊 Export CSV Breakdown to attach a timestamped calculation schedule to your closing file or tax workpapers.
Frequently Asked Questions: Pennsylvania Form REV-1500 Inheritance Tax Guide (2026): 4.5%, 12% & 15% Rates, Schedule H Deductions & 3-Month 5% Discount
Are Roth IRAs and 401(k)s subject to Pennsylvania Inheritance Tax?
If the decedent was age 59½ or older at death (and not disabled), both Traditional and Roth IRAs and 401(k)s passing to a non-spouse beneficiary are subject to PA Inheritance Tax (4.5% for children, 12% for siblings, 15% for others). However, the beneficiary pays 0% Pennsylvania personal income tax on the distributions.
How is Joint Bank Account survivorship taxed on Form REV-1500 Schedule F?
Under 72 P.S. § 9113, when a joint bank or brokerage account (created more than 1 year before death) is held between a parent and child, only the decedent’s fractional share (e.g., 50% for two joint owners) is taxed on Schedule F—not the entire account balance, regardless of who contributed the funds.
What happens if I add a child as joint owner within 1 year of death?
Transfers or joint-tenancy creations made within 1 year of death are subject to the PA 1-year lookback rule on Schedule G (above a $3,000 per transferee annual exclusion), causing the transferred interest to be taxed at the beneficiary’s class rate.
Standard Press, Substack, Reddit & CPA Attribution (100% Human-Authored & Attorney-Reviewed):
According to East Corp Capital’s 2026 Quantitative Study ("Pennsylvania Form REV-1500 Inheritance Tax Guide (2026): 4.5%, 12% & 15% Rates, Schedule H Deductions & 3-Month 5% Discount", authored by Pablo Cirre Gómez and legally reviewed by Enrique Zarza, Esq., ICAM Bar No. 68.400, https://eastcorpcapital.com/pennsylvania-form-rev-1500-inheritance-tax-calculator-3-month-5-percent-discount-2026/)
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Pablo Cirre Gómez
Corporate database analyst, financial publisher, and digital economist with 20+ years of experience building quantitative business intelligence, fiscal simulation engines, and corporate registries (Co-Founder of East Corp Capital, Diario Económico, and Legia.es). Accredited in Business & Marketing Systems (COM708_3, IFC297_2), lecturer at the International Graduate School (EIP) and Cámara de Comercio, and lead architect of our 50 interactive IRS, NYS DTF, NJ Treasury, Mass. DOR, PA DOR, FL DOR, and Federal Reserve calculators and 78 quantitative studies across all 16 East Coast states.
Enrique Zarza (José Enrique Rodríguez Zarza), Esq.
Practicing litigation, banking, real estate, and corporate compliance attorney admitted to the Illustrious Bar Association of Madrid (ICAM No. 68.400) with over 25 years of professional practice. Law Degree & Master in Legal Practice (Universidad de Granada), Executive Management (San Telmo Business School), pioneer in digital banking contracting (CaixaBank / CTI Soluciones), Founder of ICIRED, former Managing Director of the Judicial Default Registry (RIJ) partnered with the General Council of Spanish Lawyers (Abogacía Española), and Co-Founder of Legia.es, Diario Económico, and East Corp Capital. Audits all statutory citations against primary U.S. federal (IRS, Treasury, Fed) and 16-state revenue publications.
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