New Jersey levies an inheritance tax on heirs. Here's who pays, how much, and which beneficiaries are exempt.
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Estate Tax
Not Applicable
Paid by the estate before assets are distributed to heirs.
Inheritance Tax
Paid by the heirs on what they personally receive.
How it works in New Jersey
Imposes an inheritance tax with rates ranging from 0% to 16%. Property passing to surviving spouses, children, and grandchildren is exempt.
The New Jersey inheritance tax is owed by each heir based on what they personally receive. Rates frequently depend on the beneficiary's relationship to the deceased — close relatives are often exempt or taxed at lower rates than unrelated heirs.
Only 12 states plus D.C. impose an estate tax, and just 6 impose an inheritance tax. Maryland is the only state with both. Exemptions range from $1 million (Oregon, Rhode Island) up to the federal level (Connecticut), and top rates cluster around 16%. Compare New Jersey against the rest in our full state-by-state directory.
No. New Jersey does not levy a state-level estate tax. Federal estate tax still applies to estates above the federal exemption.
Yes. New Jersey imposes an inheritance tax with a top rate of 16.0%. Inheritance taxes are paid by the heirs receiving assets, and rates often vary by relationship to the deceased.
New Jersey has no state estate tax, so there is no state-level exemption to track. The federal estate tax exemption still applies.
Heirs pay the inheritance tax in New Jersey based on what they personally receive. There is no estate-level tax.
Common strategies include lifetime gifting under the federal annual exclusion, irrevocable trusts (ILITs, SLATs), spousal portability planning, charitable bequests, and — for those near the exemption — relocating domicile to a state without estate or inheritance taxes. Consult an estate attorney licensed in New Jersey.