If I have a Philadelphia County registered same-sex relationship can I
avoid the Pennsylvania Inheritance Tax?
No. Unlike the Commonwealth of Pennsylvania of which Philadelphia is
part, Philadelphia has recognized domestic partnership status and
allows partners to register formally as domestic partners. Philadelphia
then recognizes the couple as married for tax issues such as real
estate transfer taxes. Unfortunately, the Pennsylvania Inheritance
Tax is a Commonwealth Tax, not a Philadelphia Tax, so Philadelphia's
recognition has no effect on the Inheritance Tax. This means that
instead of paying the 0% married couple inheritance tax rate a registered Philadelphia domestic partner will pay the 15% rate of inheritance tax between unrelated persons.
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