Pennsylvania Form REV-1737-A is the inheritance tax return used when someone who lived outside Pennsylvania dies owning real property or tangible personal property inside the state. The completed return and any tax payment go to the Inheritance Tax Division–Nonresident at the Pennsylvania Department of Revenue in Harrisburg, not to a county Register of Wills. Tax is due at the date of death and becomes delinquent nine months later, but paying within three months earns a five-percent discount on the amount paid.1Pennsylvania Department of Revenue. Is There a Discount Allowed on PA Inheritance Tax
When a Non-Resident Estate Has to File
Pennsylvania taxes a non-resident decedent only on two categories of property physically located in the state: real property and tangible personal property.2New York Codes, Rules and Regulations. Pennsylvania Code 72 PS 9116 – Inheritance Tax Real property means land, houses, commercial buildings, and permanent structures. Tangible personal property covers physical items kept in the state: vehicles titled or garaged there, farm equipment, machinery, furniture, and collectibles. A vacation cabin in the Poconos, a boat stored at a Pennsylvania marina, or farm equipment on leased acreage would all qualify.
Jointly held real property or tangible personal property with a right of survivorship is also taxable, except when held solely between spouses.3Justia. Inheritance Tax Return – Nonresident Decedent REV-1737-A
Intangible property belonging to a non-resident is not taxable in Pennsylvania. Stocks, bonds, bank accounts, and partnership interests do not count, even when the issuer or bank is based in the state.4Pennsylvania Department of Revenue. What Property Is Subject to Inheritance Tax If a non-resident’s only Pennsylvania assets were shares in a Philadelphia-based company, no REV-1737-A is required.
Tax Rates by Beneficiary
Pennsylvania’s inheritance tax rate depends on each beneficiary’s relationship to the decedent, not on the overall size of the estate. The flat rates are:5Pennsylvania Department of Revenue. Inheritance Tax
- 0 percent on transfers to a surviving spouse, or to a parent from a child who was 21 or younger.
- 4.5 percent on transfers to direct descendants and lineal heirs, including children, grandchildren, and parents of adult children.
- 12 percent on transfers to siblings.
- 15 percent on transfers to anyone else, except charitable organizations and government entities, which are exempt.
When beneficiaries fall into different categories, each share is taxed at its own rate. A cabin left half to a child and half to a friend is taxed at 4.5 percent on the child’s half and 15 percent on the friend’s half. The family exemption that resident estates can claim is not available to non-resident estates.
What to Gather Before You Start
Pull these items together before opening the form:
- The decedent’s full legal name, Social Security number, date of death, and state of domicile.
- Letters of administration or letters testamentary issued by the probate court in the decedent’s home state, showing the personal representative’s authority.
- Parcel numbers and county locations for Pennsylvania real estate; VINs or serial numbers for vehicles and equipment.
- Date-of-death appraisals of all Pennsylvania real property and tangible personal property, valued as of the exact day the decedent died.
- Documentation of any mortgages, liens, or unpaid property taxes encumbering those assets.
Appraisals carry the most weight with the Department. Use a licensed appraiser for real estate, published valuation guides for vehicles, and a qualified specialist for farm equipment or collectibles. Weak or unsupported valuations are the most common reason the Department adjusts an estate’s reported figures upward.
Choosing the Flat Rate or Proportionate Method
REV-1737-A gives the personal representative two ways to compute the tax, and you may elect whichever produces the lower bill.3Justia. Inheritance Tax Return – Nonresident Decedent REV-1737-A
Flat Rate Method
Under the flat rate method, you report only the Pennsylvania property. The only allowable deductions are mortgages, liens, and unpaid property taxes directly encumbering that property as of the date of death.2New York Codes, Rules and Regulations. Pennsylvania Code 72 PS 9116 – Inheritance Tax Subtract those encumbrances from value, then apply each beneficiary’s rate. This method is simpler and tends to work well when the Pennsylvania property carries significant debt or when the overall estate is small.
Proportionate Method
The proportionate method requires reporting the decedent’s entire estate, every asset everywhere. In exchange, you can claim a broader set of deductions: funeral expenses, administrative costs, and all valid debts of the decedent. You compute the tax that would be owed if the decedent had been a Pennsylvania resident, then multiply by the ratio of Pennsylvania property to total property. This usually produces a lower bill when the Pennsylvania assets are a small fraction of a large estate, or when the estate carries substantial unrelated debt.
Filling Out the Form
Download REV-1737-A from the Pennsylvania Department of Revenue’s inheritance tax forms page at revenue.pa.gov, or call the 24-hour forms line at 1-800-362-2050 to request a mailed copy.
The first page collects identifying information for the decedent and the personal representative, and asks you to indicate which computation method you are electing. Supporting schedules then break the assets into categories. Report real estate on the designated real estate schedule, listing each parcel with its county, description, and date-of-death appraised value. Tangible personal property goes on a separate schedule with descriptions, locations, and valuations. If you chose the proportionate method, additional schedules capture the decedent’s full estate and all claimed deductions.
Each beneficiary must be identified by name, relationship, Social Security number, and the value of what they are receiving. The form applies each beneficiary’s rate to their share of the net taxable estate. Add the beneficiary amounts to reach the total tax, then subtract any discount earned for early payment and any tax already paid.
Where and When to File
Mail the completed REV-1737-A, all supporting schedules, and your payment to:6Montgomery County, PA. Inheritance Tax for Pennsylvania Residents
PA Department of Revenue
Bureau of Individual Taxes
Inheritance Tax Division–Nonresident
PO Box 280601
Harrisburg, PA 17128-0601
Make checks or money orders payable to “PA Dept. of Revenue.” Use certified mail or another trackable method so you have proof of the filing date.
Deadline and Discount
The tax is due on the date of death and becomes delinquent nine months later.7New York Codes, Rules and Regulations. Pennsylvania Code 72 PS 9142 – Payment Date and Discount Pay within three calendar months of the date of death and you earn a five-percent discount on the amount paid, limited to whichever is less, the tax paid or the tax due.1Pennsylvania Department of Revenue. Is There a Discount Allowed on PA Inheritance Tax Even if the final return is not ready that quickly, submitting an estimated payment within three months locks in the discount on whatever amount you send.
Extensions, Penalties, and Interest
If you cannot file within nine months, request a six-month extension by submitting Form REV-1846 or a letter to the Inheritance Tax Division before the original due date.8Pennsylvania Department of Revenue. Inheritance Tax Extension to File An extension gives more time to file but does not stop interest. Interest begins running at the nine-month mark at the rate in effect when the tax becomes delinquent, and continues until the Department receives full payment.9Cornell Law. 61 Pa Code 4.4 – Rate of Interest Applicable to Unpaid Taxes
Failing to file at all can bring a penalty of 25 percent of the tax ultimately found due or $1,000, whichever is less.10Pennsylvania Department of Revenue. REV-1500 Inheritance Tax General Information An unresolved inheritance tax obligation can also cloud title to Pennsylvania real estate, making it hard for heirs to sell or transfer the property.
After You File
The Department reviews reported valuations and deductions and issues a notice with its own appraisement, the deductions it allows, and the tax it calculates as due. Depending on complexity, this takes roughly three to six months.10Pennsylvania Department of Revenue. REV-1500 Inheritance Tax General Information If the Department accepts your figures and payment is complete, you receive a final notice confirming the tax has been satisfied. If values are adjusted upward, the notice shows the additional tax owed.
Any party who disagrees has 60 days from receiving the notice to object. The options include a written protest to the Board of Appeals (PO Box 281021, Harrisburg, PA 17128-1021), an online appeal at revenue.pa.gov/taxappeals, written notice to the Register of Wills electing to have the matter determined at the audit of the personal representative’s account (with a copy to the Office of Chief Counsel), or an appeal to the Court of Common Pleas, Orphans’ Court Division.
Once any dispute is resolved and payment is complete, the final settlement notice clears the Pennsylvania inheritance tax obligation and the personal representative can transfer or distribute the property.
Federal Estate Tax Is Separate
REV-1737-A has nothing to do with federal estate tax. For 2026, the federal filing threshold is $15,000,000 of total gross estate; estates below that owe no federal estate tax and file no federal return.11Internal Revenue Service. Estate Tax Estates above the threshold file IRS Form 706 separately. Completing REV-1737-A does not satisfy any federal requirement, and filing Form 706 does not satisfy Pennsylvania’s.