Dear Penny: My Dad Died and Left Me $500,000. Do I Have to Pay Taxes On It?

I am a resident of Pennsylvania.

Is there any way to avoid having to pay taxes on my inheritance?

Drowning in the Gravy Train

Dear Drowning,

You cant avoid duly owed taxes without illegal tax evasion.

But the taxes youll owe on your inheritance will be minimal, as estate/inheritance taxes are designed to be.

So you wont owe income tax, usually the highest-rate tax youll pay, on this inheritance.

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No Interest Til Almost 2027?

So you wont owe that, either.

Some inheritance is exempt from the Pennsylvania inheritance tax.

Find that atirs.gov/help/itaunder Is the Inheritance I Received Taxable?.

Did you know?