Estate and Inheritance Tax Facts

Estate Taxes and inheritance taxes are two entirely different assessments. Estate taxes are calculated based on the value of a deceased’s taxable estate. Inheritance taxes are imposed upon the individual receiving assets from a deceased’s estate. 

 Pennsylvania does not allow the six month after date of death alternate valuation method that is available at the federal level. Transfers to spouses exempt.

NOTE: Tennessee is expected to repeal its estate tax by January 1, 2016. Only six states currently impose an inheritance tax: Iowa, Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania. Life insurance is not included for purposes of calculating inheritance tax liability. Maryland and New Jersey are the only two states that have both an estate and inheritance tax.