This bill amends the Tax Reform Code of 1971, specifically addressing the inheritance tax rates applicable to property transfers. The current law's language is revised to establish a new schedule of inheritance tax rates based on the date of the decedent's death. The new rates range from four and one-half percent for estates of decedents dying before July 1, 2026, to zero percent for those dying on or after July 1, 2035. The bill introduces a gradual reduction in the tax rate over the years, with specific percentages outlined for each year until 2035.

The bill replaces the previous flat rate of four and one-half percent for certain relatives, including grandparents, parents, and spouses, with a tiered structure that decreases the tax burden over time. This change aims to provide a more equitable taxation framework for inheritance, reflecting a long-term reduction in tax rates for estates as time progresses. The act is set to take effect immediately upon passage.

Statutes/Laws affected:
Printer's No. 925 (Jun 09, 2025): P.L.6, No.2