New Jersey inheritance tax in 2026
New Jersey no longer taxes estates, but it still taxes what brothers, sisters, in-laws, nephews and friends inherit. Pick the relationship and the amount received to see the tax.
- Spouse, children, parents
- exempt
- Siblings, in-laws
- 11 % to 16 %
- Everyone else
- 15 % to 16 %
- Return and payment
- 8 months
New Jersey inheritance tax for this heir
$30,250
Class C: brothers and sisters, a son- or daughter-in-law. 10.1 % of what is received.
| Received | $300,000 |
| Tax | $30,250 |
| Kept by the heir | $269,750 |
Tax on the share received from a resident. A spouse pays none in any of the five states.
| State | Class | Tax |
|---|---|---|
| Kentucky | Class A | $0 |
| Maryland | Exempt | $0 |
| Nebraska | Class 1 | $2,000 |
| New Jersey | Class C | $30,250 |
| Pennsylvania | Brothers and sisters, half-blood included | $36,000 |
Compiled by Radif Partners · How we calculate · figures read on the state revenue department, the statute and irs.gov · not legal or tax advice
New Jersey taxes each transfer from a person who dies, according to the class of the person who receives it. Class A, which covers the spouse, civil union or domestic partner, children, stepchildren, grandchildren and further descendants, parents and grandparents, pays nothing. Class C, brothers and sisters and the spouse or surviving spouse of a child, pays nothing on the first $25,000 and then 11 %, 13 %, 14 % and 16 % by bracket. Class D, everyone else, nieces, nephews, cousins and friends included, pays 15 % on the first $700,000 and 16 % above, from the first dollar. Charities and the state are Class E and exempt. A sister receiving $400,000 owes $41,250; a nephew receiving the same amount owes $60,000. The return and the tax are due 8 months after death, and interest at 10 % a year runs after that. New Jersey's estate tax ended for deaths on or after January 1, 2018, so only this tax remains.
The four classes
The Division of Taxation sorts every beneficiary into a class (beneficiary classes). The rules turn on the legal relationship, not on closeness. A stepchild is Class A, but a step-grandchild is not, and falls into Class D. A domestic partner registered after July 10, 2004 or a civil union partner after February 19, 2007 is Class A, like a spouse. A son-in-law or daughter-in-law is Class C, as is the civil union partner of a child. Class B was abolished in 1963, which is why the letters jump.
| Class | Who | Rates |
|---|---|---|
| A | Spouse, civil union or domestic partner, children, stepchildren, grandchildren and further descendants, parents, grandparents, a mutually acknowledged child | exempt |
| C | Brothers and sisters, the spouse or surviving spouse of a child | first $25,000 exempt, then 11 %, 13 %, 14 %, 16 % |
| D | Everyone else: nieces, nephews, aunts, uncles, cousins, friends, step-grandchildren | 15 % up to $700,000, 16 % above |
| E | Qualified charities, religious, educational and medical institutions, the State of New Jersey | exempt |
Class C brackets in dollars
For Class C the brackets are cumulative for each beneficiary: after the first $25,000, the next $1,075,000 is taxed at 11 %, the next $300,000 at 13 %, the next $300,000 at 14 % and anything over $1,700,000 at 16 %. Class D has no exempt slice at all, which makes the gap between a brother and a nephew largest on small inheritances.
| Amount received | Brother or sister (C) | Nephew or friend (D) | Difference |
|---|---|---|---|
| $20,000 | $0 | $3,000 | $3,000 |
| $100,000 | $8,250 | $15,000 | $6,750 |
| $400,000 | $41,250 | $60,000 | $18,750 |
| $800,000 | $85,250 | $121,000 | $35,750 |
| $1,500,000 | $171,250 | $233,000 | $61,750 |
| $2,500,000 | $327,250 | $393,000 | $65,750 |
The table shows the effect of the exempt $25,000. A brother receiving $20,000 owes nothing, a nephew owes $3,000. On $2,500,000 the gap narrows to $65,750, because both classes end at 16 %.
New Jersey tax on one share
New Jersey inheritance tax for this heir
$13,750
| Received | $150,000 |
| Tax | $13,750 |
| Kept by the heir | $136,250 |
What is exempt besides Class A and E
Three exemptions apply whatever the class. Transfers to a beneficiary worth less than $500 in total are not taxed. Life insurance paid to a named beneficiary is not taxed, which is often the largest asset that passes to a nephew or friend without tax. Certain pensions are exempt as well: the New Jersey Public Employees Retirement System, the Teachers' Pension and Annuity Fund, the Police and Firemen's Retirement System, and federal Civil Service Retirement benefits paid to a beneficiary other than the estate (General Information O-10-C).
A nonresident with New Jersey real estate
If the deceased lived in another state, New Jersey taxes only real estate and tangible property located in New Jersey. Bank accounts and securities are not taxed directly, but they are reported, because the tax is computed by the ratio method: the tax on the whole share as if everything were taxable, multiplied by the New Jersey property's share of the gross estate. The old flat tax method has been replaced by this method, called Method 3 in the Division's nonresident questions. Real estate held by a married couple or civil union partners as tenants by the entirety is not taxed at the first death.
Example: a Pennsylvania resident leaves an estate of $1,500,000 to a niece, including a New Jersey shore house worth $600,000. New Jersey charges $93,200, and Pennsylvania taxes the rest of the estate at its own collateral rate, $135,000. The details of other states are on property in another state.
Deadlines, interest and waivers
The return is filed and the tax paid within 8 months of death, with the Inheritance and Estate Tax Branch in Trenton. Interest accrues at 10 % a year on any tax unpaid after that date, and the tax is a lien on New Jersey property for 15 years unless it is paid or bonded. A return is needed whenever tax is due or property passes to anyone outside Class A. For a nonresident, form L-9 NR can be used when every beneficiary of the whole estate is Class A or E, with no dollar limit, and filing the nonresident return is how the waiver that releases New Jersey real estate is obtained (nonresident questions).
The estate tax that no longer exists
Many pages still mention a New Jersey estate tax with a $675,000 exemption. That threshold applied to deaths up to December 31, 2016; it was $2,000,000 for deaths in 2017, and there is no New Jersey estate tax for deaths from January 1, 2018 (Division of Taxation). New Jersey is therefore, with Pennsylvania, Kentucky and Nebraska, a state where only the inheritance tax applies. The comparison is on inheritance tax by state.