The NJ inheritance tax is a state tax on property passed from someone who died to certain beneficiaries, and the rate depends on the beneficiary’s relationship to the person who died. Spouses, civil union partners, children, grandchildren, parents and stepchildren (Class A) pay nothing, and charities (Class E) are also exempt. Siblings and sons- or daughters-in-law (Class C) pay 11% to 16% after a $25,000 exemption, while most other beneficiaries, such as nieces, nephews and friends (Class D), pay 15% to 16%. New Jersey’s separate estate tax was repealed for deaths on or after January 1, 2018.
Key Takeaways
- Class A is exempt: spouses, civil union partners, children, grandchildren, parents and stepchildren pay no NJ inheritance tax.
- Class C pays 11%–16% after the first $25,000; this group includes siblings and a child’s spouse.
- Class D pays 15%–16%, with no exemption except for inheritances under $500.
- Class E is exempt: qualified charities, religious institutions and educational organizations.
- Deadline: the return and tax are due within 8 months of the date of death, and late tax accrues 10% interest per year.
- No NJ estate tax for deaths on or after January 1, 2018.
- Life insurance paid to named beneficiaries is exempt.
Rates and rules follow the New Jersey Division of Taxation’s inheritance tax pages and IT-R instructions, reviewed in September 2026. This is general information, not legal or tax advice; estates should consult an attorney or tax professional.
NJ Inheritance Tax Beneficiary Classes
| Class | Who is included (examples) | Tax |
|---|---|---|
| Class A | Surviving spouse, civil union partner, children, grandchildren, parents, stepchildren | Exempt |
| Class C | Brothers and sisters (including half-siblings), a son-in-law or daughter-in-law | 11%–16% after a $25,000 exemption |
| Class D | Everyone else, such as nieces, nephews, cousins, friends and unrelated individuals | 15%–16%; transfers under $500 are exempt |
| Class E | Qualified charities, religious institutions, educational organizations and certain governmental entities | Exempt |
There is no Class B under current law, so beneficiaries fall into Class A, C, D or E.
NJ Inheritance Tax Rates
Class C rates
| Amount inherited by the beneficiary | Rate |
|---|---|
| First $25,000 | 0% (exempt) |
| $25,001 – $1,100,000 | 11% |
| $1,100,001 – $1,400,000 | 13% |
| $1,400,001 – $1,700,000 | 14% |
| Over $1,700,000 | 16% |
Class D rates
| Amount inherited by the beneficiary | Rate |
|---|---|
| First $700,000 | 15% |
| Over $700,000 | 16% |
| Total inheritance under $500 | Exempt |
Example NJ Inheritance Tax Calculations
The examples below apply the published rate schedules to one beneficiary’s share. They are simplified estimates that ignore deductions such as debts, funeral costs and administration expenses, which can reduce the taxable amount.
| Beneficiary | Amount inherited | Estimated NJ inheritance tax |
|---|---|---|
| Child (Class A) | $500,000 | $0 |
| Sister (Class C) | $100,000 | $8,250 (11% of $75,000) |
| Brother (Class C) | $300,000 | $30,250 (11% of $275,000) |
| Niece (Class D) | $100,000 | $15,000 (15% of $100,000) |
| Friend (Class D) | $800,000 | $121,000 (15% of $700,000 + 16% of $100,000) |
| Charity (Class E) | $250,000 | $0 |
NJ Inheritance Tax vs. Estate Tax
People often confuse the two. An estate tax is based on the total value of the estate, while an inheritance tax is based on who receives the property. New Jersey used to have both, but that changed in 2018.
| Feature | NJ inheritance tax | NJ estate tax |
|---|---|---|
| Status | Still in effect | Not imposed for deaths on or after January 1, 2018 |
| Based on | The beneficiary’s relationship and share | The total value of the estate |
| Who is exempt | Class A relatives and Class E charities | Not applicable today |
The federal estate tax is separate and applies only to very large estates above the federal exemption amount.
What Is Exempt From NJ Inheritance Tax?
- Transfers to Class A beneficiaries and Class E organizations.
- Life insurance proceeds paid to named beneficiaries.
- The first $25,000 received by each Class C beneficiary.
- Class D inheritances under $500.
Certain other assets, such as some retirement and pension benefits, can have special treatment, so check the Division of Taxation’s guidance or ask a professional.
Filing and Paying the NJ Inheritance Tax
- Determine who inherits. Review the will or intestacy rules and classify each beneficiary.
- Value the assets as of the date of death, including real estate, bank accounts and investments.
- File the return. The Transfer Inheritance Tax Return (Form IT-R) is used for resident decedents when tax is due or a return is required.
- Pay any tax within 8 months of the date of death to avoid interest.
- Obtain tax waivers. Banks and other holders of New Jersey assets usually need a tax waiver (Form 0-1) before releasing assets.
When all beneficiaries are Class A, simplified affidavit forms may be available instead of a full return for certain assets. The Division of Taxation’s filing requirements page explains which form fits each situation.
Late payment
If the tax is not paid within 8 months of death, interest of 10% per year accrues on the unpaid amount. Because of this, many estates make an estimated payment on time, even if the final amount is not settled.
Planning Tips
- Name beneficiaries on life insurance policies, since those proceeds are exempt.
- Understand the classes before leaving property to siblings, nieces, nephews or friends.
- Consider charitable gifts, which go to Class E and are exempt.
- Talk to an estate planning attorney about wills, trusts and gifts.
- Keep records organized so your executor can file within 8 months.
Deductions That Can Lower the Tax
The NJ inheritance tax is generally calculated on the value a beneficiary receives after allowed deductions. Common deductions include debts of the person who died, funeral expenses and reasonable costs of administering the estate. Because these deductions can reduce the taxable amount, executors should keep receipts and records of every estate expense.
Who Is Responsible for Filing?
The executor or administrator of the estate usually files the inheritance tax return and pays any tax due from the estate before distributing assets. If there is no executor, a beneficiary or other responsible person may need to file. Estates that include New Jersey real estate or bank accounts often need tax waivers, so filing on time helps release assets to beneficiaries without long delays.
NJ Inheritance Tax Quick Reference
| Question | Answer |
|---|---|
| Is there an NJ estate tax? | No, for deaths on or after January 1, 2018 |
| Who is exempt? | Class A relatives and Class E organizations |
| Class C exemption | First $25,000 per beneficiary |
| Class D exemption | Only inheritances under $500 |
| Due date | 8 months after the date of death |
| Late interest | 10% per year on unpaid tax |
Because the rules depend on each beneficiary’s class and share, many families work with an estate attorney or accountant, especially when property goes to siblings, nieces, nephews or friends. Planning ahead can reduce surprises for heirs.
Finally, keep in mind that tax rules can change. Before filing, check the Division of Taxation’s current forms and instructions, or call its Inheritance and Estate Tax Service Center with questions about a specific estate.
Getting organized early also helps beneficiaries receive their shares sooner, since waivers and tax clearance can take time.
Related NJ Money Guides
For more on state taxes, see our guides to NJ income tax rates, NJ property tax and NJ sales tax. Browse more in our Money & Taxes section or on the homepage.
Frequently Asked Questions About NJ Inheritance Tax
Who pays NJ inheritance tax?
Beneficiaries in Class C (such as siblings) and Class D (such as nieces, nephews and friends) may owe tax. Class A relatives and Class E charities are exempt.
Do children pay inheritance tax in NJ?
No. Children, grandchildren, spouses, civil union partners, parents and stepchildren are Class A and exempt.
What is the NJ inheritance tax rate for siblings?
Siblings are Class C and pay 11% to 16% after the first $25,000.
What is the inheritance tax rate for nieces and nephews in NJ?
Nieces and nephews are Class D and pay 15% on the first $700,000 and 16% above that.
When is NJ inheritance tax due?
The return and tax are due within 8 months of the date of death. Late tax accrues interest of 10% per year.
Does New Jersey still have an estate tax?
No. New Jersey estate tax is not imposed for deaths on or after January 1, 2018.
Is life insurance subject to NJ inheritance tax?
Life insurance proceeds paid to named beneficiaries are exempt.
Is there NJ inheritance tax for a spouse?
No. A surviving spouse or civil union partner is a Class A beneficiary and pays no NJ inheritance tax.
Do charities pay NJ inheritance tax?
No. Qualified charities, religious institutions and educational organizations are Class E and exempt.
The Bottom Line
The NJ inheritance tax depends on who inherits. Close relatives in Class A and charities in Class E pay nothing, Class C beneficiaries pay 11% to 16% after a $25,000 exemption, and Class D beneficiaries pay 15% to 16%. The tax is due within 8 months of death, and New Jersey no longer has an estate tax for deaths since 2018.
