State inheritance tax
New Jersey inheritance tax in 2026
Checked against state sources 2026-10-21 · Gregory Garone, CEPA®
Short answer: New Jersey has no estate tax for deaths after 2017, but its inheritance tax still applies. Spouses, children, grandchildren, parents and charities pay nothing. Siblings and in-laws pay 11% to 16% above $25,000, and other heirs pay 15% to 16%.
New Jersey at a glance
| Tax type | Inheritance tax |
|---|---|
| Estate tax exemption, 2026 deaths | No estate tax |
| Top rate | 16% (inheritance) |
| Portability to a surviving spouse | Not applicable |
How the New Jersey inheritance tax works
- Class A beneficiaries are exempt: spouses, civil union and domestic partners, children, stepchildren, grandchildren and other lineal descendants, and parents and grandparents.
- Class C covers siblings, including half-siblings, and a child's spouse or civil union partner.
- Class D covers everyone not in another class, including nieces, nephews and friends. A Class D beneficiary who receives less than $500 owes nothing.
- Class E, charities and certain institutions, is exempt.
| Class | Amount received | Rate |
|---|---|---|
| C | First $25,000 | 0% |
| C | Next $1,075,000 | 11% |
| C | Next $300,000 | 13% |
| C | Next $300,000 | 14% |
| C | Over $1,700,000 | 16% |
| D | First $700,000 | 15% |
| D | Over $700,000 | 16% |
Planning points
- A will that leaves a share to a niece or nephew triggers 15% tax from the first dollar, so many New Jersey plans route those gifts through life insurance or lifetime gifts.
- Life insurance paid to a named beneficiary is generally exempt from New Jersey inheritance tax.
Common questions
Does New Jersey have an inheritance tax in 2026?
New Jersey has no estate tax for deaths after 2017, but its inheritance tax still applies. Spouses, children, grandchildren, parents and charities pay nothing. Siblings and in-laws pay 11% to 16% above $25,000, and other heirs pay 15% to 16%.
Does New Jersey still have an estate tax?
No. The New Jersey estate tax does not apply to people who died on or after January 1, 2018. The inheritance tax remains.
Do nieces and nephews pay New Jersey inheritance tax?
Yes. They are Class D beneficiaries and pay 15% on the first $700,000 and 16% above that.
Sources and limitations
Other states
Planning around New Jersey tax?
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