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Inheriting a house in Philadelphia usually arrives at the worst possible time, attached to a to-do list nobody wants. Before the practical decisions, it helps to have the two tax questions straight — because most people have them backwards, and one of them is much better news than they expect.
Pennsylvania inheritance tax: what it is and when it’s due
Pennsylvania is one of a handful of states that still charges an inheritance tax, and it’s assessed on the person receiving, based on their relationship to the person who died:
- 0% — surviving spouse
- 4.5% — children, grandchildren, and other lineal descendants
- 12% — siblings
- 15% — everyone else, including nieces, nephews, and friends
It’s generally due within nine months of the date of death. Here’s the part worth knowing early: Pennsylvania offers a 5% discount for paying ahead of that deadline, and even if the estate isn’t close to settled, you can make an estimated prepayment to the Register of Wills and still claim the discount on what you paid. Families routinely miss that simply because nobody tells them in the first three months.
Capital gains: the good news nobody explains
The fear we hear most is “if I sell, I’ll get destroyed on taxes on all that appreciation.” Usually not — because inherited property generally gets a stepped-up basis. Your cost basis resets to the property’s fair market value as of the date of death, not what your parents paid for it in 1974.
Practically, that means if you sell reasonably soon after inheriting, your taxable gain is measured only from that date-of-death value — which is often close to the sale price, so the gain is small or nothing at all. The house that’s been in the family for fifty years is usually not the tax bomb people brace for.
We’re not accountants and your situation has details we can’t see. Get the date-of-death value documented and talk to a CPA — but don’t let a tax fear you haven’t checked drive you into holding a house you don’t want.
Meanwhile, the house doesn’t wait for the paperwork
Estates move slowly. The property doesn’t. Taxes, insurance, and utilities keep running, and an inherited house is very often sitting empty — which in Philadelphia brings its own rulebook: vacant-property licensing, the requirement for functional doors and real windows on every opening, and the fact that empty rowhomes attract scrappers, squatters, and deed thieves. Our vacant house page covers what the city actually requires, and it’s worth reading if nobody’s living there.
One free, five-minute step while the estate is open: sign up for Fraud Guard through the Philadelphia Department of Records. It emails you if any document gets recorded against the property. Houses in estates are a known target for deed theft precisely because they sit unattended.
When there’s more than one heir
This is the most common reason an inherited Philadelphia house sits for years. Three siblings, three different situations — one wants to keep it, one needs the money now, one lives in Arizona and just wants it resolved.
A sale generally needs everyone with an ownership interest to agree. If agreement is impossible, Pennsylvania allows a partition action — a court proceeding to force the issue — but it’s slow, expensive, and tends to leave lasting damage in a family. Most families do better with one heir buying the others out, or with a clean sale that turns an indivisible house into divisible cash. A firm cash number often ends an argument that’s been circling for months, because it replaces opinions about what the house is “worth” with an actual figure everyone can react to.
Probate and title
You can often sell before an estate is fully wrapped up, depending on how the estate is structured and what authority the executor has. The mechanics live on our selling a house in probate page.
Separately: if the deed was never actually transferred after an earlier death in the family — a grandparent’s name still on it, say — that’s a tangled title, and it’s extremely common in Philadelphia. It’s solvable but it needs handling before a sale can close. See selling a house with title problems. The free Save Your Home Philly Hotline at (215) 334-HOME (4663) helps Philadelphia families with tangled title at no cost.
What about everything inside?
Clearing out a parent’s house is the part people dread most, and it’s often what stalls everything. Take what matters to you and leave the rest — we buy houses fully furnished and handle the cleanout ourselves. Nobody has to spend six weekends filling a dumpster with a lifetime of belongings.
How we help
We buy inherited Philadelphia houses as-is, in any condition, with the belongings still in them, with open violations, with back taxes, and with multiple heirs on the deed. No repairs, no cleanout, no fees or commissions. We close on your timeline — including waiting on the estate if that’s what’s needed.
An offer costs nothing and doesn’t obligate anyone, and in a multi-heir situation it’s often the most useful thing on the table: a real number to decide around. Here’s how we build one. Estates draw a lot of unsolicited mail, so also worth reading: how to vet any buyer who contacts you.
This page is general information about Pennsylvania inheritance tax, basis, and the sale process — it is not legal, tax, or accounting advice. Rates, deadlines, and treatment depend on your specific circumstances. Talk to the estate’s attorney and a CPA.
Ready to talk it through? Get your fair cash offer today, or call or text us at (215) 515-7799.
Frequently Asked Questions
Can I sell an inherited house before probate is finished?
Often yes, depending on how the estate is set up and what authority the executor or administrator holds. We work around estate timelines regularly and can hold a closing date until the estate is ready. Details are on our probate page.
Will I owe Pennsylvania inheritance tax on the house?
Generally it depends on your relationship to the person who died — 0% for a spouse, 4.5% for children and other lineal descendants, 12% for siblings, and 15% for everyone else. It’s usually due within nine months, with a 5% discount for paying early, and you can make an estimated prepayment to the Register of Wills to capture that discount. Confirm the specifics with the estate’s attorney or a CPA.
Will I get hit with capital gains tax if I sell?
Usually far less than people expect. Inherited property generally receives a stepped-up basis — your basis becomes the fair market value at the date of death rather than the original purchase price — so selling soon after often produces little or no taxable gain. Document the date-of-death value and check with a CPA before assuming otherwise.
What if the other heirs and I don’t agree?
A sale generally requires everyone with an ownership interest to sign. Pennsylvania’s partition action exists to force a resolution through the courts, but it’s slow and costly. In practice, a firm cash offer often breaks the deadlock — it gives everyone a concrete number instead of competing opinions about value. We’re happy to talk to all the heirs together.
The house is full of belongings and needs everything. Still interested?
Yes. Take what you want and leave the rest exactly where it is — furniture, boxes, a basement nobody’s been through. We buy in any condition and handle the entire cleanout. That’s usually the single biggest relief for a family in this situation.