At a glance
| State estate tax | No |
|---|---|
| Estate top rate | — |
| Inheritance tax | Yes — up to 16%N.J.S.A. § 54:34-2 (inheritance tax rates by class) · 2026 deaths |
| Small-estate ceiling | $50,000 (spouse) / $20,000N.J.S.A. 3B:10-3, 3B:10-4 · current |
| TOD deed for real estate | Not availableNJ — Uniform Real Property TOD Act (A1819, 2026) not enacted · not enacted as of 2026 |
| Community-property state | No |
Estate tax
New Jersey does not levy its own estate tax. An estate here is subject only to the federal estate tax, which most estates never owe — the federal exclusion is measured in the millions. See the federal lifetime exemption for how that works.
Inheritance tax
Class A (spouse, civil-union or domestic partner, children and other lineal descendants, stepchildren, parents and grandparents) is fully exempt — no tax.
Class C (siblings, and a son- or daughter-in-law) gets the first $25,000 exempt, then pays 11% on the next $1,075,000, rising to 16% above $1,700,000. Class D (everyone else — nieces, nephews, friends) pays 15% on the first $700,000 and 16% above it, with no exemption.
Class E (the State, and qualified charitable, religious, and educational organizations) is fully exempt. There is no Class B — that class was abolished in 1963. Whether an inheritance is taxed at all turns entirely on the beneficiary's class, not the size of the estate.
Probate basics
A surviving spouse or partner may take an intestate estate without administration by affidavit before the county Surrogate when the total property is $50,000 or less (N.J.S.A. 3B:10-3); with no such spouse, one heir may do so up to $20,000 with the other heirs' written consent (§ 3B:10-4).
New Jersey is a common-law (separate-property) state for ownership between spouses. A transfer-on-death deed for real estate is Not available NJ — Uniform Real Property TOD Act (A1819, 2026) not enacted · not enacted as of 2026 — see the full New Jersey transfer-on-death deed guide for the requirements, revocation, and alternatives. The probate deadlines for this state — filing the will, the creditor-claim window, the inventory — are cited in the Executor & Heir’s Guide.
State-specific quirks
Estate tax gone, inheritance tax stayed
New Jersey repealed its estate tax for deaths on or after January 1, 2018, but the separate transfer inheritance tax is still fully in force in 2026. "No estate tax" does not mean "no death tax" in New Jersey.
Siblings, nieces, nephews, and friends are taxed
Because the tax depends on the beneficiary's class, leaving assets to a sibling (Class C, 11%–16% after a $25,000 exemption) or to a niece, nephew, or friend (Class D, 15%–16% with no exemption) triggers real tax even though a spouse or child (Class A) pays nothing.
The class, not the estate size, drives the tax
There are no Class A dollar thresholds and no Class B (abolished 1963). Whether an inheritance is taxed at 0%, 11%–16%, or 15%–16% turns entirely on which class the beneficiary falls into under N.J.S.A. 54:34-2.
Where to read next
- the federal lifetime exemption — how the far larger federal exclusion works — and why a state tax can still apply below it
- funding a revocable trust — the most common way to keep property out of probate entirely
- the ILIT cluster — keeping a life-insurance death benefit out of a taxable estate
- the Executor & Heir's Guide — the probate deadlines for this state, cited to the statute
- New Jersey small-estate procedure — the state’s simplified transfer or administration route, eligibility rules, and claimant responsibilities.
- ← Back to the 51-jurisdiction comparison
Sources & methodology
Methodology & sources
Estate and inheritance tax figures reviewed by Sakineh Majd, J.D. — Maine Bar #004999 · 2026-07-24. The review memo explains its scope and source checks.
Tax figures include citations and source effective dates. Unconfirmed figures direct readers to the state. Aggregator roundups are not sources. See our editorial standards.
General information, not legal or tax advice. Residency, property location, and title can change the result. A professional licensed in New Jersey can assess your situation.
Last verified July 18, 2026.