Klenk Law

Pennsylvania Inheritance Tax Discount – Maybe

Posted on Sat Nov 15, 2014, on Probate and Estate Administration

From our “Ask a Question” Mailbag: Pennsylvania Inheritance Tax Discount

Most Recently Updated July 8, 2018.

“Is there ever a discount with the Pennsylvania Inheritance Tax?”

Pennsylvania Inheritance Tax Discount

Pennsylvania Inheritance Tax Discount

To avoid interest and penalties, the Pennsylvania Inheritance Tax must be paid within 9 months of the date of death. As executor, you are responsible to make the payment. If you delay, and interest or penalties are created, the beneficiaries may demand that you be held responsible.

File Within Three Months of the Date of Death

To encourage you to make the payment early, the Commonwealth gives the estate a discount of 5% of the lesser of the tax paid or the tax due if you make payment within 3 months of the date of death.

This encourages executors to guess at the amount due and make early payment. When the actual tax return is filed and the correct tax due calculated, the 5% discount is applied.

If you overpaid, you get a discount on the tax due and the estate receives a refund. If you underpaid, you get the discount on the tax you actually paid but you pay the outstanding amount at the full rate without a discount.

More Probate Questions?

Filing the PA Inheritance Tax timely is only part of the overall probate process. By all means, if you wish to learn more, please read my more detailed article, The Probate Process All You Need to Know.

In Conclusion: Pennsylvania Inheritance Tax Discount

I hope that this article was helpful in explaining when a discount is applied to the PA Inheritance Tax. Further, I included links to even more detailed information on my website. Therefore, please contact me and let me know how I did. Certainly, your comments and questions are welcome!

Let our Probate Lawyers help walk you through what can be a confusing process. To begin with, call to speak to one of our experienced Probate Attorneys.  By all means, our lawyers are ready to answer your questions. In fact, feel free to contact our office for a free consultation. Ultimately our goal is to make the process as painless as possible!

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Death taxes, Delaware County, Inheritance Tax, Pennsylvania, Probate, Probate Attorney, Probate Lawyer

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