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hippata2023 t1_jbhjj35 wrote

Reply to comment by HomicidalHushPuppy in Pennsylvania has No. 4 highest tax rates in U.S.: report by dissolutewastrel

PA's death tax is insane. The lowest rate is 4.5% between direct descendants/lineal heirs (e.g. parents to kids) and there is no floor. If your parent's estate is greater than 0, you're going to owe 4.5% of whatever's there.

For context, the Fed's do it right: in order to be subject to it, the estate has to have be in excess of $12 million.

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mrboozer t1_jbi21vn wrote

There is a lot of room in the middle there.

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Super_C_Complex t1_jbi97up wrote

Lowest is 0 actually.

Certain farmland is exempt, children under 21 don't qualify, and property owned by spouses

But also, this is money owed on transfer and as much as the tax is the alternative is that it's taxed like income by the recipient.

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