Repeal of the Inheritance Tax for Descendants?

There have been attempts from time to time in the Pennsylvania House of Representatives to repeal the Pennsylvania inheritance tax, but those attempts have always died in the Senate.

It is therefore noteworthy that a bill to repeal the inheritance tax on children, grandchildren, and other lineal descendants (as well as parents and grandparents) has been favorably reported out of the Senate Finance Committee, and has received in its first consideration by the Senate as a whole.

S.B. 28 would phase out the inheritance tax on lineal descendants (and ancestors), which is now 4.5%, by reducing the tax rate by 0.25%, 0.5%, and 1% increments over the next 10 years, ending with a 0% rate effective 7/1/2029. The 12% rate for siblings, and the 15% rate for other beneficiaries, will not be affected.

For information on other pending bills that might be of interest, see Pennsylvania Legislation Pending.

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