Sep. 10, 2025
By State Rep. Valerie Gaydos
44th District
When families lose a loved one, they deserve space to grieve, not a tax bill. Yet in Pennsylvania, the state adds financial stress to emotional pain through an antiquated and unfair inheritance tax. This policy punishes families for simply receiving what was already theirs and reminds them the government stands between them and their legacy. That is why I have reintroduced
House Bill 1394, which would eliminate this outdated tax and finally allow Pennsylvanians to keep what their loved ones intended to pass on.
The inheritance tax in Pennsylvania affects thousands of families each year. It applies to the transfer of assets from a deceased person to their heirs, with the tax rate determined by the relationship between the deceased and the beneficiary. While transfers to a surviving spouse are exempt, direct descendants must pay 4.5%. Siblings are taxed at 12%. Other heirs can face a rate as high as 15%. These percentages may seem small on paper, but in real life, they represent tens of thousands of dollars taken from family savings, homes, farms and small businesses.
Pennsylvania is one of only six states that still imposes this kind of tax. The trend across the country is clear. States are eliminating it because it hurts families and discourages economic growth. This tax disincentivizes investment, especially for high-net-worth individuals who might otherwise choose to retire or relocate their businesses in Pennsylvania. Instead, they leave for states with more reasonable tax structures, taking their capital and job opportunities with them.
Critics might argue eliminating this tax only benefits the wealthy. That could not be further from the truth. Unlike the federal estate tax, which includes a generous exclusion for property valued at up to $13million, Pennsylvania's inheritance tax offers no similar protection. Middle-class families are often the ones hit hardest. Whether it is a family home passed down to children or a modest savings account left to a sibling, the tax applies with no regard for the size of the estate.
This policy is not just economically misguided. It is morally out of touch. At a moment when families should be healing, the state is sending a bill. That is not compassion. That is bureaucracy over humanity.
Eliminating the inheritance tax is about more than numbers. It is about modernizing our laws to reflect the values we claim to hold. It is about removing barriers that keep families from building generational wealth. And it is about encouraging people to plant roots in Pennsylvania, knowing that the state will honor, not penalize, their final wishes.
House Bill 1394 has been introduced and referred to the House Finance Committee. I urge my colleagues and the citizens of Pennsylvania to support this effort. Let us make our state a place where families are free to grieve without financial interference. Let us finally lay this tax to rest.
Representative Valerie Gaydos
44th Legislative District
Pennsylvania House of Representatives
Media Contact: Rick Leiner
717-260-6437
rleiner@pahousegop.com
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