Thursday, July 12, 2012

Pennsylvania Exempts Family Farms from State Inheritance Tax


On July 2, 2012, Pennsylvania Governor Tom Corbett signed into law legislation exempting children and siblings of working farm owners from state inheritance tax.  As a result, effective retroactively to June 30, 2012, when inheriting a working farm, children will no longer pay a 4.5% inheritance tax and siblings will no longer pay a 12% inheritance tax.  However, for the children or siblings to receive the tax break, the inherited property must remain a working farm for at least seven years after the transferor’s date of death.   

To read the legislation in its entirety, please click the link below:

Section 23 of House Bill 761

Written by M. Sean High, Research Assistant
Penn State Law, Agricultural Law Center


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