Gaydos Reintroduces Legislation to Eliminate Pennsylvania Inheritance Tax

May 8, 2025

HARRISBURG – Rep. Valerie Gaydos (R-Allegheny) has introduced legislation to repeal the Pennsylvania Inheritance Tax, otherwise known as the “death tax.” Gaydos believes this is necessary to ease the financial burden on families during times of loss. House Bill 1394 would get rid of the tax by deleting the law that gives the state the authority to collect it.

“Pennsylvania is one of only six states that still imposes an inheritance tax,” said Gaydos. “At a time when families are grieving the loss of a loved one, the state should not be handing them a tax bill. The inheritance should go to the people it was intended for without the government taking a portion.”

Currently, the Pennsylvania Inheritance Tax is assessed on the value of a decedent’s estate transferred to beneficiaries, with rates based on the relationship between the deceased 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.
   • 15% on transfers to other heirs (excluding charitable organizations, exempt institutions and government entities).

“This is yet another tax that disincentivizes business investment in Pennsylvania and encourages high-net-worth individuals to relocate to more tax-friendly states,” said Gaydos. “Other states have already recognized this and updated their laws. If we want to keep families and businesses in Pennsylvania, we need to modernize our tax structure.”

Unlike the federal estate tax, which includes a general exclusion amount of $12.92 million in 2023, Pennsylvania imposes its inheritance tax with no comparable exemption, placing a significant burden on many middle-class families.

“The federal government has acknowledged the impact of these taxes and raised thresholds to prevent undue hardship,” said Gaydos. “Pennsylvania must follow that lead and remove this outdated burden. Eliminating the inheritance tax will allow individuals to pass on their hard-earned assets without penalty during an already difficult time.”

House Bill 1394 has been referred to the House Finance Committee for consideration.