How Much Does an Executor Get Paid in Pennsylvania?

Pennsylvania does not set a fixed executor fee. The law, 20 Pa.C.S. § 3537, says the court shall allow the personal representative compensation that is "reasonable and just" and may calculate it on a graduated percentage, and the Pennsylvania Superior Court held in In re Estate of Preston (1989) that a fiduciary's pay should be based on the actual services rendered, not an arbitrary formula.

What most families miss is the tax trade. IRS Publication 559 says all personal representatives must include fees paid to them from an estate in their gross income, and the Pennsylvania Department of Revenue lists executor's fees as always taxable Pennsylvania compensation at the flat 3.07 percent rate. Yet the same commission is a deduction on the Pennsylvania inheritance tax return, where Schedule H (form REV-1511) has a line for personal representative commissions. For a child who is both executor and heir, a $10,000 fee trims the inheritance tax by $450 at the 4.5 percent rate while adding $307 of state income tax and federal income tax on top. This guide covers how compensation is set, how it is taxed, and how to decide whether to take it. It explains how the rules generally work and is not legal or tax advice.

What Does Pennsylvania Law Say About Executor Compensation?

Executor compensation, often called a commission, is payment from the estate to the personal representative for the work of administering it. Section 3537 of Title 20 is short: the court allows compensation that is reasonable and just under the circumstances, and it may use a graduated percentage to calculate it.

The Preston decision set the tone for how courts apply that rule. The Superior Court said "the fiduciary's entitlement to compensation should be based upon actual services rendered and not upon some arbitrary formula," and it called awarding commissions simply on a percentage basis, without asking whether the amount was reasonable, an "egregious error."

In practice, that means an executor who spends a year selling a house, clearing out personal property, dealing with creditors and filing returns can justify more than one who closes two bank accounts and writes a few checks.

Are Percentage Fee Schedules Still Used?

Percentages still show up as a starting point, because the statute expressly allows a graduated percentage. What changed after Preston is how that number is built and tested.

In that case, the court rejected the use of a published fee schedule that had been applied to the decedent's jointly held property as well as the estate. Jointly held property passes outside the estate, so the court held it should not have been part of the base. Two lessons follow for families:

• The base is the property the executor actually administers, not everything the decedent owned.

• A percentage is only a check on reasonableness. If a beneficiary objects, the executor may have to show the work behind the number.

Is an Executor Fee Taxable Income?

Yes, at both levels. IRS Publication 559 for the 2025 tax year tells nonprofessional executors to report the fee on Schedule 1 of Form 1040 as other income, and it treats fees as self-employment income only for people in the business of serving as executors. The Pennsylvania Department of Revenue's personal income tax guide lists "executor's or administrator's fees" in its table of items always taxable as Pennsylvania compensation.

An inheritance is treated differently. IRS Publication 525 says property you receive as a gift, bequest or inheritance generally isn't included in your income, but in Pennsylvania it can carry inheritance tax. That difference is what makes the decision to take a fee worth a few minutes with a calculator.

Should a Family Executor Take the Fee or Waive It?

It depends on who the executor is in relation to the decedent and who else inherits. The Pennsylvania inheritance tax rates published by the Department of Revenue are 0 percent for a surviving spouse, 4.5 percent for lineal heirs, 12 percent for siblings and 15 percent for other heirs, including nieces, nephews and friends.

Here is what a $10,000 commission does on the Pennsylvania side alone, before federal income tax:

• Executor is a child of the decedent: the deduction saves about $450 of inheritance tax, and the fee costs $307 of state income tax

• Executor is a sibling: the deduction saves about $1,200, against $307 of state income tax

• Executor is a niece, nephew or friend: the deduction saves about $1,500, against $307 of state income tax

These are rough illustrations, not advice. Federal income tax at the executor's own bracket then sits on top of the income side. For a child who is also the only heir, taking a fee often moves money from one pocket to the other and adds tax along the way. When several children share the estate and one does all the work, a fee is a fair way to recognize that effort, even if the tax math is close. An accountant can run the real numbers.

Who Reviews the Fee Before It Is Paid?

Commissions appear in the estate's account, the report of everything that came in and went out. Beneficiaries review that account, and if someone objects, the Orphans' Court decides what is reasonable.

In Westmoreland County, the county's Estates page explains that audits of estate accounts are heard by the miscellaneous judge and that audit dates and filing deadlines are advertised in the Westmoreland Law Journal. Written objections are filed with the Register of Wills and served on the attorney of record. Our post on the difference between probate and estate administration in Pennsylvania explains where the account fits in the overall process, and our guide to how long probate takes covers the timeline.

Is the Attorney's Fee Separate From the Executor's Fee?

Yes. The executor's commission pays the personal representative. The attorney's fee pays the lawyer who guides the estate, and both are listed separately on Schedule H of the inheritance tax return.

Preston applied the same standard to both. The court said an attorney seeking compensation from an estate carries the burden of establishing the facts that show the fee is earned. Asking for a written fee arrangement at the start avoids surprises later.

If you are weighing whether to serve at all, our posts on an executor's duties and responsibilities and whether an executor can be held personally liable in Pennsylvania describe what the job involves.

FAQ

Is there a standard executor fee percentage in Pennsylvania?

No statute sets one. Section 3537 allows reasonable and just compensation and permits a graduated percentage, and courts test any percentage against the work actually done.

Do I pay tax on an executor fee in Pennsylvania?

Yes. The fee is federal gross income under IRS Publication 559 and taxable Pennsylvania compensation at 3.07 percent.

Can I choose not to take a fee?

Yes. An executor can serve without claiming a commission, which can make sense when the executor is also an heir and the tax math favors receiving the property as an inheritance. Put the decision in writing so the account is clear.

Is the executor's commission deductible on the PA inheritance tax return?

Yes. Schedule H, Funeral Expenses and Administrative Costs, includes a line for personal representative commissions along with attorney fees and probate fees.

Is a family executor's fee subject to self-employment tax?

Generally no. IRS Publication 559 treats fees as self-employment income only for people in the business of being executors, and directs nonprofessionals to report them as other income.

What if the beneficiaries think the fee is too high?

They can object to the account. The court then looks at the services actually performed, which is why executors should keep a simple log of their time and tasks from the start.

Estate Administration Help From David K. Lucas & Associates

David K. Lucas & Associates PLLC, at 140 South Main Street, Suite 301, in Greensburg, helps executors and administrators through probate and estate administration across Westmoreland County and the surrounding counties. Attorney David K. Lucas handles estate administration and probate, and the firm assists executors with gathering assets, managing the estate, preparing tax returns and making final distributions. Read more about executor responsibilities in Pennsylvania or our Pennsylvania inheritance tax services.

Visit David K. Lucas & Associates or call 724-836-3300 today. Contact us for more information.