Pennsylvania Inheritance Tax in Berks County

Pennsylvania charges an inheritance tax on most of what a person leaves behind, and the rate depends on who inherits: 0% for a surviving spouse, 4.5% for children and other direct descendants, 12% for brothers and sisters, and 15% for everyone else. There is no separate Berks County inheritance tax. It is a state tax, but the county Register of Wills collects it as the state's agent, so a Berks County estate files the return and pays right here in Reading.

The tax is on the transfer to each heir, not on the estate as a whole, so two people inheriting from the same estate can owe at different rates. This guide covers the rates, when the tax is due, the discount for paying early, what property is taxed, and how to file. It is general information, not legal or tax advice; an estate with a business, a farm, or out-of-state property is worth taking to a lawyer or accountant.

The rates depend on the heir's relationship

Pennsylvania sets the rate by how the heir is related to the person who died:

Who inherits	Tax rate
Surviving spouse	0%
Charities, government, and exempt institutions	0%
A parent inheriting from a child age 21 or younger, or a child age 21 or younger inheriting from a parent	0%
Children over 21, grandchildren, and other direct descendants; parents and grandparents	4.5%
Brothers and sisters	12%
Everyone else (nieces, nephews, cousins, friends, unmarried partners)	15%

"Direct descendants and lineal heirs" at the 4.5% rate includes children, grandchildren, parents, and grandparents. For inheritance tax, "children" also covers adopted children and stepchildren, and Berks County's own guidance counts sons-in-law and daughters-in-law in the 4.5% group. One exception runs the other way: property that passes to or for a child age 21 or younger from a parent is taxed at 0%, not 4.5%. The 15% rate is the catch-all for anyone who is not a spouse, a lineal relative, or a sibling.

When it is due, and the discount for paying early

Inheritance tax becomes due the day a person dies. The return and payment are due before nine months pass from the date of death; after that, the tax is delinquent and interest can be added.

Pennsylvania rewards paying early. If you pay within three months of the death, you get a 5% discount on the tax, calculated on the tax paid or the tax due, whichever is less. Estates often make an early estimated payment to lock in the discount even before the full return is ready, because the discount can be worth more than the money earns sitting in the estate's account. You can ask the Department of Revenue for an extension of time to file the return, but that does not push back the payment deadline.

What is taxed and what is not

The tax reaches all the real estate, belongings, cash, and accounts a Pennsylvania resident owned at death. It also reaches some property that never goes through probate, which surprises many families:

• A bank or investment account held jointly with someone other than a spouse is taxed on the deceased person's share. If you held a joint account with a parent, the survivor is generally taxed on half of it.
• Payable-on-death and transfer-on-death accounts, and other transfers that pass outside the will, can still be taxable.

Some property is exempt or gets a break:

• Property owned jointly by a husband and wife is exempt. So is a transfer to a surviving spouse (the 0% rate).
• Gifts to charities, exempt institutions, and government bodies are exempt.
• Qualifying farm and agricultural property (for deaths after June 30, 2012) and a qualifying family-owned business (for deaths after June 30, 2013) can be exempt if they meet the state's conditions.
• The estate can deduct real debts before the tax is figured: the deceased person's unpaid bills, funeral and burial costs, the burial lot and grave marker, and the estate's administration costs, including attorney and executor fees.
• A surviving spouse, or children or a parent of the same household, can claim a family exemption of $3,500 in property off the top.

Inheritance tax is separate from the federal estate tax, which only applies to very large estates, and separate from income tax. An inheritance is not counted as taxable income on your Pennsylvania personal income tax return, though its value does count if you claim the state's Tax Forgiveness credit on Schedule SP.

How to file and pay in Berks County

The person in charge of the estate handles the return: the executor named in the will, or the administrator the Register of Wills appointed if there was no will. If no one is formally in charge and there is taxable property, the people who received it must file.

1. Get the return form. The state form is the REV-1500, Inheritance Tax Return for a Resident Decedent, with schedules for listing property, joint assets, and deductions. The Department of Revenue's REV-584 general-information sheet walks through the basics.
2. List the property and figure the tax at the rate for each heir.
3. File the completed return in duplicate with the Register of Wills in the county where the person lived. For a Berks County resident, that is the Register of Wills at the Services Center, 633 Court Street, Reading. There is a $15 fee to file the original return ($10 for a later supplemental return).
4. Pay the tax. Make the check payable to "Register of Wills, Agent." You can mail it, send it by a courier such as FedEx, hand it to the office, or drop it in the lobby drop box at 633 Court Street. To claim the 5% discount, pay within three months of the death.
5. Keep proof of what you paid and filed. The office date-stamps the return; that stamped copy is the estate's record that the tax was reported.

The office that collects the tax is the same one that handles wills and appoints estate administrators. For how an estate is opened and settled, see our guides on what the Berks County Register of Wills does and how to probate an estate in Berks County.

Frequently asked questions

Does my spouse pay inheritance tax on what I leave them?

No. Property that passes to a surviving husband or wife is taxed at 0%, and property a couple owned jointly is exempt. A surviving spouse can inherit the whole estate without owing Pennsylvania inheritance tax.

What is the tax rate for children and grandchildren?

4.5%. Children, grandchildren, and other direct descendants inherit at the 4.5% "lineal" rate, and so do parents and grandparents. One exception: a child age 21 or younger who inherits from a parent is taxed at 0%. For this tax, adopted children and stepchildren are treated as children. This differs from the rules when there is no will, where a stepchild who was never adopted inherits nothing; see what happens if you die without a will.

How long do I have to pay, and is there a break for paying early?

The tax is due at death and becomes delinquent nine months after. Pay within three months of the death and you get a 5% discount on the tax. Many estates make an early estimated payment to capture the discount, then true up the amount when the full return is filed.

Is money from a joint bank account or a payable-on-death account taxed?

Often, yes. A joint account with someone other than a spouse is taxed on the deceased person's share, and payable-on-death or transfer-on-death accounts can be taxable even though they skip probate. Whether a specific account is taxed depends on how it was held, so confirm with the office or the Department of Revenue.

Do I owe Berks County a tax on top of the state tax?

No. There is only the state inheritance tax. Berks County does not add its own. The county Register of Wills collects the state tax as an agent and charges a small filing fee for the return.

Sources and contact

• Pennsylvania Department of Revenue: Inheritance Tax overview, the REV-584 general-information sheet, and the REV-1500 return
• Berks County Register of Wills: the inheritance tax page and the fee schedule (Bill of Costs, effective Dec. 1, 2025)

Register of Wills and Clerk of the Orphans' Court: Berks County Services Center, 2nd Floor, 633 Court Street, Reading, PA 19601. Phone 610-478-6600. Open Monday through Friday, 8:30 a.m. to 4 p.m. Facts in this guide were verified against the Pennsylvania Department of Revenue and Berks County on September 12, 2026; tax laws and figures can change, so confirm with the office, the Department of Revenue, or a professional before you rely on them.