Does Pennsylvania have a separate estate tax in addition to the inheritance tax?

No. Pennsylvania does not currently impose a separate state estate tax. The inheritance tax is the primary state-level tax on transfers at death, and it applies in addition to, not instead of, the federal estate tax for the small number of estates large enough to owe federal tax.

Does a will avoid Pennsylvania inheritance tax?

No. A will determines who receives your assets, but it does not change whether those transfers are taxed. The tax applies based on your relationship to the recipient, regardless of whether the assets pass through a will, a trust, or beneficiary designations.

Who actually pays the tax, the estate or the person inheriting?

In practice, the tax is typically paid out of the estate before distributions are finalized, though the tax is technically assessed based on each beneficiary's relationship to the decedent. The executor or administrator is generally responsible for filing the return and arranging payment.

What if I inherit from someone who lived in another state?

Pennsylvania inheritance tax generally applies based on where the decedent lived and where their real estate is located, not where the beneficiary lives. If you live in Pennsylvania but inherit from a relative who lived and owned property entirely in another state, Pennsylvania inheritance tax typically does not apply to that inheritance, though the other state's rules might.

Can I just give assets away before I die to avoid this tax?

Gifts made within one year of death are pulled back into the taxable estate, aside from a limited $3,000 per-recipient annual exclusion. Gifting further in advance can still reduce the eventual tax, but it needs to be part of a deliberate, longer-term plan, not a last-minute move.

PA inheritance tax

Trust and Estate

Pennsylvania Inheritance Tax: A Plain-English Guide for Lancaster Families

Trust and Estate

Family Legacy Planning in Lancaster, PA