✓ Verified June 2026
This guide explains New Jersey estate tax and inheritance tax in plain English — whether New Jersey taxes your estate, who pays, the exact exemptions, and how the federal estate tax fits in for 2026. All figures verified as of June 2026.
In This New Jersey Guide:
New Jersey Estate & Inheritance Tax at a Glance
Here is exactly how New Jersey estate tax and inheritance tax work:
| Does New Jersey have an estate tax? | NO |
| Does New Jersey have an inheritance tax? | YES |
| Inheritance tax — who pays | New Jersey imposes a Transfer Inheritance Tax on beneficiaries based on their relationship to the deceased. Class A beneficiaries (spouse, children, grandchildren, parents, grandparents, stepchildren) pay 0%. Class C beneficiaries (siblings, sons-in-law, daughters-in-law) receive a 25000 exemption per beneficiary, then pay 11% on amounts up to 1100000, 13% on 1100000 to 1400000, 14% on 1400000 to 1700000, and 16% on amounts over 1700000. Class D beneficiaries (nieces, nephews, cousins, friends, unmarried partners, and all others not in A, C, or E) have no exemption and pay 15% on the first 700000 and 16% on amounts over 700000. Class E beneficiaries (charities, religious institutions, educational institutions, hospitals, public libraries, and qualifying 501(c)(3) organizations) pay 0%. The tax applies to transfers of real and personal property valued at 500 or more. The inheritance tax return must be filed and any tax paid within 8 months of the date of death. |
| Federal estate-tax exemption (2026) | 15000000 per individual (30000000 for married couples). The Tax Cuts and Jobs Act of 2017 had originally set the exemption to sunset at the end of 2025, which would have reduced it to approximately 7000000 per person. However, the One Big Beautiful Bill Act, signed into law on July 4 2025, permanently set the exemption at 15000000 per person for 2026 with no sunset provision, indexed for inflation starting in 2027. The federal estate tax rate remains 40% on amounts above the exemption. |
Who is exempt from New Jersey inheritance tax: Class A beneficiaries are fully exempt: spouse, civil union partner, domestic partner, children, grandchildren, stepchildren, parents, and grandparents. Class E beneficiaries are also fully exempt: qualified charities, religious organizations, educational institutions, hospitals, public libraries, the State of New Jersey and its political subdivisions, and most 501(c)(3) organizations. Life insurance proceeds paid to a named beneficiary are exempt regardless of class.
Transfers under 500 in aggregate value to any single beneficiary are exempt.
Spousal portability (federal): Yes, the federal estate tax exemption is portable between spouses. If the first spouse to die does not use their full exemption, the surviving spouse may elect to use the unused portion by filing IRS Form 706 (federal estate tax return) for the deceased spouse, even if no tax is owed.
This effectively allows a married couple to shelter up to 30000000 from federal estate tax in 2026.
Gift tax: New Jersey does not impose a state gift tax. Only Connecticut has a state-level gift tax. However, the federal gift tax still applies. The federal annual gift tax exclusion is 19000 per recipient for 2026. Gifts above that amount count against the 15000000 federal lifetime gift and estate tax exemption.
Who Actually Owes Estate Tax in New Jersey
New Jersey repealed its state estate tax effective January 1 2018, so estates of any size are no longer subject to a separate New Jersey estate tax. Most New Jersey families whose assets pass to a spouse, children, or grandchildren will owe no inheritance tax either, because those Class A beneficiaries are fully exempt.
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However, families who plan to leave assets to siblings, nieces, nephews, friends, or unmarried partners should be aware that those beneficiaries may face inheritance tax rates of 11% to 16%. With the federal exemption now permanently set at 15000000 per person, the vast majority of New Jersey estates will not owe federal estate tax.
Individuals with estates approaching or exceeding the federal threshold, or those leaving significant assets to non-Class-A beneficiaries, may benefit from consulting a licensed estate planning attorney or tax professional.
Other New Jersey estate/inheritance tax rules: New Jersey repealed its state estate tax for deaths on or after January 1 2018 (previously the exemption was phased from 675000 to 2000000 before full repeal). The inheritance tax remains in full effect and is one of the oldest transfer taxes in the United States.
New Jersey is one of only six states that impose an inheritance tax and one of the few states that previously had both an estate tax and an inheritance tax simultaneously. There is no Class B under current law. The inheritance tax is administered by the NJ Division of Taxation Transfer Inheritance Tax Branch.
Executors should obtain NJ inheritance tax waivers (Form L-8 for resident decedents) before distributing estate assets, as banks and financial institutions may require them before releasing funds.
Understanding New Jersey Estate and Inheritance Tax
Worrying about New Jersey estate tax is common, but most families owe nothing. Whether New Jersey estate tax applies depends on the size of the estate and whether New Jersey levies an estate tax, an inheritance tax, or neither. The table above shows the exact exemptions and rates, plus the federal exemption and its 2026 change, so you can see where you actually stand on New Jersey estate tax.
If your estate is large enough that New Jersey estate tax could apply, a licensed tax professional in your state can help you plan.
Official New Jersey Sources & Resources
- New Jersey Department of Revenue: https://www.nj.gov/treasury/taxation/inheritance-estate/inheritance.shtml
- New Jersey Estate Tax Statute: https://www.nj.gov/treasury/taxation/inheritance-estate/tax-rates.shtml
- Internal Revenue Service — Estate Tax: irs.gov
- Cornell Legal Information Institute: law.cornell.edu/wex
This New Jersey estate-tax guide was last verified against official sources in June 2026. Tax laws and exemptions change yearly — verify with your state revenue department or a licensed tax professional.
More New Jersey Wills & Probate Guides
- New Jersey Wills & Estate Planning
- New Jersey Probate Process
- Dying Without a Will in New Jersey
- New Jersey Small Estate Affidavit
- New Jersey Living Trust
- Probate Cost Calculator
- All 51 States
Disclaimer: This guide is informational only and is not legal or tax advice. Estate, probate, and tax laws change and vary by state and county. Verify current rules and dollar figures with your state’s court, statute, or a licensed attorney or tax professional before acting. For urgent matters like an active probate or a tax deadline, consult a licensed professional in your state right away.