Inheriting a House in Pennsylvania: Probate, Inheritance Tax, and Selling

You inherited a house in Pennsylvania - here’s what actually happens

First, slow down - nothing has to be decided this week. The house stays put, the mortgage cannot be called due just because the owner died, and Pennsylvania’s probate process is actually one of the simpler ones in the country.

There is one thing Pennsylvania does differently that you should know early, because it has a deadline attached: Pennsylvania has an inheritance tax that most heirs actually pay - unlike almost every other state. Children inheriting from a parent owe 4.5% of the property’s value. There is a discount for paying early and a filing deadline at nine months. We cover the details below; just do not let that deadline sneak up on you.

Otherwise the mechanics are familiar: if the house was solely in the deceased person’s name, it goes through probate at the county Register of Wills. Trusts, joint ownership, and beneficiary designations skip that. And if you live out of state, the whole thing can be run remotely.

Does it go through probate?

The usual exceptions first:

• Living trust. A house held in a revocable living trust bypasses probate; the successor trustee transfers or sells it directly. (It does not bypass the inheritance tax - almost nothing does.)
• Joint ownership with survivorship. Property held as joint tenants with right of survivorship, or by spouses as tenants by the entirety, passes automatically to the surviving owner.
• No transfer on death deed. Pennsylvania does not recognize TOD or beneficiary deeds for real estate. If you have seen those mentioned in national articles, they do not apply here.
• Small estate petition. Pennsylvania’s simplified process covers estates of $50,000 or less in personal property - it excludes real estate, so it will not move a house.

Practical upshot: a solely owned Pennsylvania house almost always goes through probate. The good news is that Pennsylvania probate is comparatively light. The executor (or administrator, if there is no will) is sworn in at the Register of Wills in the decedent’s county - often in a single short appointment - and receives letters. From there, the personal representative manages the estate with minimal court supervision; there is no drawn-out judicial confirmation of every step unless a dispute lands the estate in Orphans’ Court.

The Pennsylvania probate timeline

A typical uncontested estate runs about a year, sometimes less:

1. Opening the estate (weeks 1-4). The will is filed with the Register of Wills, the executor is sworn in, and letters are issued. This can happen within days of gathering the paperwork.
2. Notices and advertising (months 1-2). The estate is advertised in a local newspaper and legal journal, and beneficiaries get formal notice.
3. The three-month mark. Paying the estimated inheritance tax within three months of death earns a 5% discount on the amount paid early. Estates with a house and some savings often prepay from liquid funds to capture it.
4. Inventory and debts (months 3-9). Assets are valued, debts and expenses paid. Creditors are effectively cut off a year after the estate is advertised, but most estates resolve claims much sooner.
5. The nine-month mark. The inheritance tax return (REV-1500) is due, with the tax, nine months after death.
6. Distribution and closing (months 9-15). Most estates settle informally by family settlement agreement; a formal Orphans’ Court accounting is the exception, not the rule.

The inheritance tax return is usually the pacing item - the Department of Revenue’s appraisal and assessment cycle adds months of calendar time even when everything is clean.

Taxes when you inherit

Here is the part that is genuinely different in Pennsylvania.

Pennsylvania inheritance tax. The tax is charged on what each beneficiary receives, at a rate set by relationship:

• Surviving spouse: 0%
• Children, grandchildren, parents (lineal heirs): 4.5%
• Siblings: 12%
• Everyone else (nieces, nephews, friends): 15%

The tax applies to Pennsylvania real estate at its date-of-death value (less debts like the mortgage and estate expenses), and it applies whether or not the asset went through probate - jointly held property and trust assets are generally still caught, in proportion to the decedent’s interest. Payment is due nine months after death; paying an estimate within three months earns a 5% discount on what you prepay. There is no Pennsylvania estate tax on top of it.

So on a $300,000 mortgage-free house left to two children, the inheritance tax is roughly $13,500 total - real money, but rarely a reason to panic-sell.

Federal taxes are kinder. The federal estate tax only touches estates above $15 million per person (2026). And the stepped-up basis is the fact that saves most families the most: the house’s cost basis for capital gains resets to its fair market value at the date of death. A house bought for $40,000 decades ago that is worth $300,000 now gives you a $300,000 basis - sell around that price soon after, and there is little or no capital gains tax. Only appreciation after the date of death is taxable when you eventually sell.

Can you sell during probate in Pennsylvania?

Yes, and usually without court involvement:

• With a will. Nearly all Pennsylvania wills grant the executor a power of sale; even without one, the personal representative has broad statutory authority to sell estate real property. No court confirmation hearing, no overbid process - the executor lists and sells like a normal owner, signing the deed as executor.
• Without a will. Administrators generally can sell too, though title companies sometimes want extra comfort (court approval or heirs joining the deed) in intestate estates, especially soon after death.
• The inheritance tax lien. Pennsylvania’s inheritance tax is a lien on the real estate until paid. In practice, closings handle this routinely - the tax is paid from sale proceeds at closing or the title company escrows for it. Expect your closing agent to raise it; it is normal.

Proceeds from a sale during administration belong to the estate and are distributed once debts and taxes are settled.

If you live out of state

Plenty of Pennsylvania estates are settled by children who moved away years ago:

• Out-of-state executors can serve. The swearing-in at the Register of Wills has traditionally been in person, but counties commonly accommodate remote or delegated arrangements through counsel - your attorney will know the local practice.
• After that, essentially everything legal runs through your Pennsylvania attorney by mail and email.
• The physical property is the real challenge from a distance: winterizing a vacant house, insurance that stays valid on an unoccupied home, an aging housing stock where deferred maintenance is common, and clearing out decades of belongings.
• A local agent experienced with estate sales becomes your on-the-ground partner - property checks, cleanout coordination, honest advice on whether that dated but solid rowhome or rancher should sell as-is or get targeted updates, and running the sale while you stay home.

What’s the house worth?

In Pennsylvania the number matters three times: it sets the inheritance tax (so the estate must document date-of-death value), it fixes your federal stepped-up basis, and it drives the keep-or-sell decision. Automated online estimates are shakiest on exactly what people inherit here - original-condition homes in towns where nearly identical houses sell for very different prices street by street.

Get a documented date-of-death value and a current as-is versus fixed-up number. A local agent can pull these for free, and the same numbers feed straight into the REV-1500 return your attorney or accountant files.

Frequently asked questions

How much is Pennsylvania inheritance tax on a house? 4.5% of its date-of-death value (net of the mortgage and expenses) for children and other lineal heirs, 12% for siblings, 15% for others, 0% for a surviving spouse. Due nine months after death; a 5% discount applies to amounts prepaid within three months.

Does the inheritance tax apply if the house was in a trust or jointly owned? Generally yes - Pennsylvania’s inheritance tax reaches most non-probate transfers too, in proportion to the decedent’s interest. Probate avoidance is not inheritance tax avoidance in this state.

How long does Pennsylvania probate take? Roughly 9 to 15 months for a typical estate, with the inheritance tax return cycle usually setting the pace. Simple estates can finish faster.

Can we sell the house before probate is done? Yes. Executors and administrators can generally sell without a court hearing, and the inheritance tax lien is handled at closing out of the proceeds.

Do I also pay income tax on what I inherit? No - inheritances are not income. When you later sell the house, capital gains tax applies only to appreciation above the stepped-up date-of-death basis.