Beneficiary classes
| Class | Who | Tax |
|---|---|---|
| A | Spouse or civil union partner, children, grandchildren, parents, grandparents, stepchildren | Exempt |
| C | Siblings, sons- and daughters-in-law | First $25,000 exempt, then 11% to 16% |
| D | Everyone else, such as nieces, nephews and friends | 15% up to $700,000, 16% above |
| E | Qualifying charities and certain public entities | Exempt |
Deadlines and waivers
- The inheritance tax return and any tax are generally due eight months after the date of death; interest applies after that.
- Banks, brokerage firms and title companies often need a tax waiver from the New Jersey Division of Taxation before releasing accounts or allowing real estate to be sold. When everything passes to Class A beneficiaries, simplified self-executing forms are often available.
Common surprises
- Leaving assets to a sibling, niece or nephew can trigger tax even in a modest estate.
- Life insurance paid to a named beneficiary is generally not subject to the tax.
- Out-of-state residents can owe New Jersey inheritance tax on New Jersey real estate or tangible property.
Frequently asked questions
Does New Jersey still have an estate tax?
No. The estate tax was repealed for deaths on or after January 1, 2018. The inheritance tax still applies.
Do children pay New Jersey inheritance tax?
No. Children, grandchildren, spouses, parents and grandparents are Class A beneficiaries and are exempt.
What is the New Jersey inheritance tax rate for siblings?
Siblings are Class C. The first $25,000 is exempt, and amounts above that are taxed at graduated rates from 11% to 16%.
When is New Jersey inheritance tax due?
Generally eight months after the date of death.