Pennsylvania Inheritance Tax on a House Left to the Children
Figures verified November 11, 2026 against PA Schedule A instructions (REV-1502) · Update log
Short answer
A house that a Pennsylvania parent leaves to their children is taxed at 4.5% of its fair market value on the date of death, after the mortgage and the estate's other deductions. There is no exemption for the family home. A surviving spouse pays 0%, and so does a child aged 21 or younger.
The tax is due within nine months of the death. Pay within three months and 5% comes off. On a $280,000 house with a $40,000 mortgage, that is roughly $10,000 of tax and about $500 saved.
How the house was owned decides how it is taxed
| How the house was owned | Schedule | What is taxed |
|---|---|---|
| In the parent's name alone | A | The full value |
| Parent and child as joint tenants with right of survivorship, for more than a year | F | The parent's share: half with two owners |
| Child added to the deed within one year of the death | G | The full value, less $3,000 |
| Deeded to the children, but the parent kept a life estate or kept living there rent-free | G | The full value |
| In a revocable (living) trust | G | The full value |
| Parents owned it together and one spouse survives | None | Nothing. It is exempt when they held it together for more than a year. |
| Parent and someone else as tenants in common | A | The parent's fraction |
A house outside Pennsylvania is not subject to Pennsylvania inheritance tax, unless it was under contract to be sold before the death.
Three ways to value the house
The return asks for fair market value on the date of death. The Schedule A instructions allow three methods:
- Sale price, if the house is sold within 15 months of the death. Report the gross sale price, not what is left after costs, and attach the settlement sheet. If the buyer is a family member or anyone involved with the estate, also attach an appraisal or other proof that the price was fair.
- A certified appraisal as of the date of death.
- The county tax assessment multiplied by the common level ratio factor for that county. Attach the assessment notice.
Pennsylvania has no six-month alternate valuation date. The value is always as of the date of death.
What you can deduct
- The mortgage and any home equity loan the parent owed at death, on Schedule I. Proof of the balance is always required.
- Property taxes owed for the time before the death, on Schedule I.
- Costs of selling: the broker's commission and state and local realty transfer taxes paid by the estate, on Schedule H.
- Upkeep while the estate holds the house, in reasonable amounts, when it was in the parent's name alone: utilities, insurance, repairs. Not allowed for a house that passed to a surviving joint owner.
- Funeral and administration costs: the funeral, probate fees, the attorney, the appraiser, on Schedule H.
The mortgage is not subtracted on Schedule A. List the full value there and claim the mortgage on Schedule I.
Worked example
James, a widower, died on May 4, 2026. His will leaves everything equally to his two adult children. The house, in his name alone, is appraised at $280,000 as of the date of death. He owed $40,000 on the mortgage. The funeral and the costs of administering the estate come to $12,000. To keep the numbers clear, the house is the only asset.
| Line | Amount |
|---|---|
| House, Schedule A (REV-1500 line 1) | $280,000 |
| Funeral and administration, Schedule H (line 9) | -$12,000 |
| Mortgage, Schedule I (line 10) | -$40,000 |
| Net value subject to tax | $228,000 |
| Tax at 4.5% (children) | $10,260 |
| 5% discount if paid by August 4, 2026 | -$513 |
| Tax if paid within three months | $9,747 |
- Each child's share of the tax is $5,130, or $4,873.50 with the discount.
- The children do not need the return to be finished to get the discount. They can prepay at the Register of Wills by August 4, 2026.
- The return is due nine months after the death: February 4, 2027. Unpaid tax carries interest from the next day.
Put your own figures into the Pennsylvania inheritance tax calculator to see each child's amount and both dates.
Paying the tax when the money is in the house
The tax is due nine months after the death whether or not the house has been sold. Unpaid tax and interest are a lien on the real estate until they are paid. Interest for 2025 and 2026 is 7% a year.
- Prepay what you can within three months. The 5% discount applies to whatever is paid in that window, even a part payment.
- Ask for a payment plan if the estate cannot pay in full: the Department of Revenue takes requests at RA-RV-CEC-DPP@pa.gov or 717-425-2495.
- An extension to file does not extend the time to pay.
Payments go to the Register of Wills in the county where the parent lived, by check payable to "Register of Wills, Agent". See Register of Wills offices by county.
If the children sell the house later
Inheritance tax is separate from income tax. For federal income tax, the children's cost basis in an inherited house is generally its value on the date of death, so a sale soon after the death usually produces little or no taxable gain. See the inherited property capital gains calculator.
Optional: get help filing
Get a flat-fee quote to file the Pennsylvania inheritance tax return
Leave your email and the rough estate size, and a CPA or Enrolled Agent who prepares Pennsylvania REV-1500 returns will reply with a fixed price. Free, and no obligation.
More on the Pennsylvania return
Frequently asked questions
Do children pay inheritance tax on a parent's house in Pennsylvania?
Yes. Children pay 4.5% of the net value. There is no exemption for the family home. A child aged 21 or younger pays 0%, and so does a surviving spouse.
How is the house valued for PA inheritance tax?
At fair market value on the date of death, shown by the gross sale price if it is sold within 15 months, by a certified appraisal, or by the county assessment multiplied by the common level ratio factor.
Can we deduct the mortgage?
Yes. A mortgage the parent owed at death is a deduction on Schedule I, and proof of the balance is required. It is not subtracted from the value on Schedule A.
My mother put my name on the deed. Is the house still taxed?
Her share is. With two joint owners for more than a year, half the value is taxed at 4.5%. If your name was added within one year of her death, the full value is taxed, less $3,000. If she deeded the house to you but kept living there, the full value is taxed.
Do we owe the tax before the house is sold?
The tax is due nine months after the death, sold or not. After that interest runs, and the unpaid tax is a lien on the property. A sale within 15 months lets you use the sale price as the value.
Sources
- 1.PA Department of Revenue: Schedule A instructions, Real Estate (REV-1502)pa.gov
- 2.PA Department of Revenue: REV-1500 Inheritance Tax Return, Resident Decedent, and instructionspa.gov
- 3.PA Department of Revenue: Schedule H instructions, Funeral Expenses and Administrative Costs (REV-1511)pa.gov
- 4.PA Department of Revenue: Schedule I instructions, Debts of Decedent, Mortgage Liabilities and Liens (REV-1512)pa.gov
- 5.PA Department of Revenue: Schedule G with instructions, Inter-Vivos Transfers and Misc. Non-Probate Property (REV-1510)pa.gov
- 6.Pennsylvania General Assembly: Tax Reform Code of 1971, Article XXI, Inheritance Tax (sections 2107, 2108, 2142)palegis.us
- 7.PA Department of Revenue: REV-1611, interest rates (2025 and 2026: 7%)pa.gov
- 8.IRS Publication 551, Basis of Assets (inherited property)irs.gov
This information is provided for educational purposes only and should not be considered legal or tax advice. Consult a qualified tax professional for guidance specific to your situation.