Current legislation known as Act 13 of 2019 establishes a new rate category for inheritance tax in addition to the existing rates. The new law adds Clause 1.4 to Section 9116 of the Code and provides as follows:
(1.4) Inheritance tax upon the transfer of property to or for the use of a child 21 years of age or younger from a natural parent, an adoptive parent or a step-parent of the child shall be at the rate of 0%.
This new provision “shall apply to property transferred by a natural parent, an adoptive parent or step-parent who dies after December 31, 2019.”
Prior to this law change only inheritance from a spouse was at the rate of 0% for inheritance tax.