Wedding cakeCouples in same-sex marriages are entitled to the same favorable tax treatment as other married couples, for purposes of inheritance and transfer tax in Pennsylvania, according to a bulletin issued by the Department of Revenue.

The bulletin implements last year’s court decision (Whitewood v. Wolf) that legalized same-sex marriages in the state.

Under Pennsylvania’s inheritance tax, a surviving spouse inherits at the rate of 0%. Prior to the recognition of same-sex marriage, a spouse of the same gender would have paid inheritance tax at the rate of 15%.

Similarly, natural and adopted children inherit at the rate of 4.5%. The bulletin provides that “a natural or adopted child of any individual and that individual’s spouse shall be considered a lineal heir for purpose of establishing tax rates.” They, too, would have paid a rate of 15% before the change.

The bulletin also recognizes same-sex couples and their children for exemption from real estate transfer tax.

Those who have paid taxes at the rates applicable before the change can apply for a refund, but certain time limits apply.


Do You Need Help with
Estate Administration?

Call

412-531-7123 (Western PA)
or
215-600-0250 (Eastern PA)

Contact Us Online

Related Posts

The #1 Problem in Powers of Attorney

The #1 Problem in Powers of Attorney

In the many powers of attorney I see in my line of work, one problem recurs over and over again. And it’s costing families tens of thousands, and even hundreds of thousands, of dollars in asset protection. The number one problem is inadequate gifting provisions. If...

Who has capacity to make a will?

Who has capacity to make a will?

Fundamental to the validity of any last will and testament is that the testator (person whose will it is, and who is signing the documents) had capacity at the time of execution. By statute, a testator in Pennsylvania must be “of sound mind” to make a will. (20 Pa....

Share This