How to Complete and File Pennsylvania Form REV-1500: Schedules and Rates

Pennsylvania Form REV-1500 is the inheritance tax return an estate’s personal representative files with the Register of Wills in the county where a Pennsylvania resident died. The return and any tax owed are due within nine months of the date of death, and paying within three months earns a 5 percent discount on the total tax.¹ The form itself is short; the work is in the schedules attached to it.

Who Files, and When

A return must be filed for every Pennsylvania resident decedent who owned property that is or may be subject to the tax.² The executor or administrator appointed by the Register of Wills is responsible. If no representative has been appointed, or the representative files a return that leaves out certain property, the person who received that property must report it.

The REV-1500 is for resident decedents only. If the deceased lived out of state but owned Pennsylvania real estate or tangible personal property, the estate files the REV-1737-A directly with the Department of Revenue’s Inheritance Tax Division in Harrisburg.³

Nine months is the hard deadline. Miss it and interest starts running on day 271 and keeps running until the balance is paid.² Failure to file at all can add a penalty of 25 percent of the tax due or $1,000, whichever is less.

If the estate cannot file in time, submit Form REV-1846 or a signed letter to the Inheritance Tax Division before the due date to request a six-month extension. An extension buys time to file, not time to pay. Interest still begins at nine months.

The 5 percent early-payment discount is worth knowing about at the outset. Payment within three months of death qualifies even if the return is filed later, so representatives who can reasonably estimate the tax often send an early payment and reconcile when the schedules are complete.¹

Building the Asset Side: Schedules A Through G

The REV-1500 organizes the decedent’s property across seven asset schedules, each with its own form. Include only the schedules that apply — do not submit blank ones.⁴

Schedule A (REV-1502) — real estate, including the primary residence, vacation homes, and vacant land.
Schedule B (REV-1503) — stocks, bonds, and similar securities.
Schedule C (REV-1504) — interests in closely held corporations, partnerships, and sole proprietorships.
Schedule D (REV-1505) — mortgages and notes receivable owed to the decedent.
Schedule E (REV-1506) — cash, bank deposits, and miscellaneous personal property such as vehicles, jewelry, and household items.
Schedule F (REV-1508) — jointly owned property.
Schedule G (REV-1510) — lifetime transfers and other non-probate property, including retained-interest trusts and beneficiary-designated accounts.

Every asset is valued at fair market value as of the date of death. Bank balances and publicly traded securities come straight from the date-of-death statement. Real estate, closely held businesses, and unique items like art or collectibles generally need a formal appraisal. Keep every appraisal, statement, and broker confirmation in the estate file, because the Department of Revenue can request documentation for any figure on the return.

Jointly Owned Property

Property owned jointly between spouses is exempt from inheritance tax entirely.¹ Joint property with anyone else is different. When the decedent held property as joint tenants with right of survivorship with a non-spouse, the full value generally goes on Schedule F unless the surviving joint tenant can prove they contributed to the purchase price. A parent who added an adult child to a bank account or a deed, without the child putting in money, has left the full value in the estate.

Non-Probate Property on Schedule G

Schedule G is where first-time filers most often trip. Transfer-on-death accounts, payable-on-death bank accounts, “in trust for” accounts, and IRAs with named beneficiaries all belong on Schedule G, not Schedule E. If the oval for non-probate property is filled in on the front page, Schedule G must be completed and filed with the return.²

Deductions: Schedules H and I

Two schedules reduce the gross estate to the net taxable value.

Schedule H (REV-1511) — funeral expenses and administration costs: burial, headstone, service, legal fees, executor commissions, and other costs of settling the estate.
Schedule I (REV-1512) — debts of the decedent, mortgage balances, and liens: credit card balances, outstanding medical bills, the remaining balance on a home mortgage.

The totals from these schedules move to Lines 9 and 10 of the main return. Line 11 adds them. Line 12 subtracts them from the gross assets on Line 8 to produce the net value of the estate.²

Applying the Right Rate

The inheritance tax rate depends on each beneficiary’s relationship to the decedent, not the size of the estate:

0 percent — surviving spouse; parent-to-child or child-to-parent transfers where the child is 21 or younger; property owned jointly between spouses.⁵
4.5 percent — lineal descendants and ancestors: children over 21, grandchildren, parents, grandparents, and the spouse of a deceased child.
12 percent — siblings.
15 percent — everyone else, including nieces, nephews, friends, and unmarried partners.

Charities, exempt institutions, and government entities are exempt from the tax.¹ When property passes to a married couple jointly with right of survivorship and the two spouses would face different rates, the lower rate applies to the entire interest.⁵

Schedule J (REV-1513) lists every beneficiary and their relationship. Amounts passing to each rate category feed Lines 15 through 18. Line 19 totals the tax due.

Exemptions Worth Knowing

Family-Owned Business

Under 72 P.S. § 9111(t), transfers of a qualified family-owned business interest to family members are exempt.⁶ At the date of death the business must have fewer than 50 full-time equivalent employees, a net book value of assets under $5 million, and at least five years in existence. It cannot exist principally to manage investments or produce passive income. Claim the exemption on a timely filed return and attach Schedule C-SB (REV-571).²

Each new owner then files an annual certification with the Department of Revenue, mailed out every January and due February 15, for seven consecutive years.⁷ If the business is sold outside the family during those seven years, the full tax becomes due with interest running from the original deadline.

Agricultural Use

Farmland can qualify under 72 P.S. § 9111(s) if it generates at least $2,000 in gross annual income from agriculture. Each owner must certify annually for seven years that the land still qualifies. If it stops being farmed or income drops below $2,000 during that window, the owner must notify the Department of Revenue within 30 days and will owe the full inheritance tax plus interest.⁸ Claim it by attaching Schedule AU (REV-1197).

Life Insurance

Life insurance death benefits paid to a named beneficiary are generally exempt under 72 P.S. § 9111(r), provided the payout is not structured as an annuity. Proceeds typically do not appear on the REV-1500 at all, which is worth confirming when the decedent held several policies.

What to Attach

The return itself is filed in duplicate: two complete copies of the REV-1500 and every applicable schedule.² Beyond the schedules, attach:

A copy of the will, if the decedent died testate.
A copy of any living trust the decedent funded during life while retaining an interest or power of appointment.
A copy of federal Form 706, if one was required, filed through the Register of Wills within one month of the federal filing.
Copies of deeds for real estate listed on Schedules A, F, or G.⁴
Schedule AU (REV-1197) if claiming the agricultural exemption.
Schedule C-SB (REV-571) if claiming the family-owned business exemption.
Schedule M (REV-1647) if a future interest compromise applies.
Schedule O (REV-1649) to elect deferral of a spousal trust.

Order the package with the three-page REV-1500 on top followed by the schedules in sequence. Skip blank ones.

Where to Send It and How to Pay

Mail or hand-deliver the duplicate return to the Register of Wills in the county where the decedent lived at the time of death.² There is no statewide address for resident returns; each Register of Wills handles its own filings, so check the county office for its mailing address and any local requirements.

Pay by check submitted with the return, made out to the Register of Wills of the applicable county, or pay electronically through Pennsylvania’s myPATH portal, which accepts inheritance tax payments.⁹

The front page collects the decedent’s Social Security number, last known address, date of death, and the personal representative’s information. Select the type of return (original, supplemental, or amended) and fill in the ovals describing the estate: testate, intestate, living trust, agricultural exemption, and so on. The recapitulation on the summary pages pulls totals from each schedule. Confirm every summary line matches its schedule total before you send it; a mismatch is the fastest way to get a correction notice.

After You File

The Register of Wills forwards the return to the Department of Revenue for review. The Department then issues a Notice of Appraisement that either accepts the return as filed or adjusts figures, showing additional tax owed or a refund due. This notice finalizes the estate’s inheritance tax liability and is what you need to close the estate.

An estate that disagrees with the Department’s adjustments can appeal to the Board of Appeals, and from there to the Court of Common Pleas, Orphans’ Court Division.¹⁰ The Notice of Assessment states the appeal deadline; read it carefully.

If assets surface after the original return was filed, report them on a supplemental return using the same REV-1500. Mark the “Supplemental Estate Return” oval on page one and include only the newly discovered items.² File it in duplicate with the same Register of Wills, and pay any additional tax with the supplemental return to stop further interest from running.

1
Commonwealth of Pennsylvania. Inheritance Tax
2
Pennsylvania Department of Revenue. REV-1500 Pennsylvania Inheritance Tax Return
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Pennsylvania Department of Revenue. REV-1737-A Inheritance Tax Return Nonresident Decedent
4
Bucks County. Inheritance Tax
5
Pennsylvania General Assembly. Pennsylvania Code 72 PS 9116 – Inheritance Tax
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Pennsylvania General Assembly. Pennsylvania Code 72 PS 9111 – Transfers Not Subject to Tax
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Pennsylvania Department of Revenue. What Are the Requirements to Qualify for the Family-Owned Business Exemption
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Pennsylvania Department of Revenue. Schedule AU – Agricultural Use Exemptions REV-1197
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Commonwealth of Pennsylvania. myPATH
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Commonwealth of Pennsylvania. Tax Appeals