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Bill > SB751

PA SB751

PA SB751
In inheritance tax, further providing for the rate of inheritance tax.

summary

Introduced
06/09/2025
In Committee
06/09/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An act relating to tax reform and State taxation by codifying and enumerating certain subjects of taxation and imposing taxes thereon; providing procedures for the payment, collection, administration and enforcement thereof; providing for tax credits in certain cases; conferring powers and imposing duties upon the Department of Revenue, certain employers, fiduciaries, individuals, persons, corporations and other entities; prescribing crimes, offenses and penalties," in inheritance tax, further providing for the rate of inheritance tax.

AI Summary

This bill amends Pennsylvania's inheritance tax rate for transfers of property to close relatives like grandparents, parents, children, and their spouses, establishing a gradual reduction of the tax rate over time. Currently set at 4.5%, the inheritance tax will progressively decrease each year from July 1, 2026, to July 1, 2035, when it will ultimately reach zero percent. Specifically, the tax rate will drop by a quarter of a percentage point each year, starting at 4.5% in 2026 and declining to 4.25%, 4%, 3.75%, 3.25%, 2.75%, 2.25%, 1.75%, 1.25%, and 0.75% in subsequent years, before reaching 0% in 2035. This means that for estates of relatives like parents, grandparents, and children, the tax burden will steadily decrease over a decade, potentially making inheritance transfers more financially advantageous for families. The bill takes effect immediately upon passage.

Committee Categories

Budget and Finance

Sponsors (12)

Last Action

Referred to Finance (on 06/09/2025)

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