New Jersey: estate, probate and Medicaid rules in one place

Quick answers

State estate tax

Estate-tax dataset 2026.v2

State estate tax

NoVerified

Source: N.J.S.A. § 54:34-2 (inheritance tax rates by class) · Checked July 18, 2026

Full detail: New Jersey estate and inheritance tax page

Inheritance tax

Estate-tax dataset 2026.v2

Inheritance tax

YesVerified

Source: N.J.S.A. § 54:34-2 (inheritance tax rates by class) · Checked July 18, 2026

Class A (Spouse/civil-union partner, children, stepchildren, grandchildren, parents, grandparents) — top rate

0%Verified

• Fully exempt.

Source: N.J.S.A. § 54:34-2 (inheritance tax rates by class) · Checked July 18, 2026

Class A (Spouse/civil-union partner, children, stepchildren, grandchildren, parents, grandparents) — exemption

No value recorded

The pinned estate-tax dataset holds no exemption amount for this class.

Class C (Siblings, spouse/civil-union partner of a child (son/daughter-in-law)) — top rate

16%Verified

• First $25,000 exempt; then 11% to $1.075M, 13% to $1.375M, 14% to $1.7M, 16% above.

Source: N.J.S.A. § 54:34-2 (inheritance tax rates by class) · Checked July 18, 2026

Class C (Siblings, spouse/civil-union partner of a child (son/daughter-in-law)) — exemption

$25,000Verified

Source: N.J.S.A. § 54:34-2 (inheritance tax rates by class) · Checked July 18, 2026

Class D (All others (nieces, nephews, friends, unmarried partners, etc.)) — top rate

16%Verified

• 15% on the first $700,000, 16% above; taxed from essentially the first dollar.

Source: N.J.S.A. § 54:34-2 (inheritance tax rates by class) · Checked July 18, 2026

Class D (All others (nieces, nephews, friends, unmarried partners, etc.)) — exemption

No value recorded

The pinned estate-tax dataset holds no exemption amount for this class.

Class E (Qualified charities, religious/educational institutions, government) — top rate

0%Verified

• Exempt. (Historical Class B was abolished.)

Source: N.J.S.A. § 54:34-2 (inheritance tax rates by class) · Checked July 18, 2026

Class E (Qualified charities, religious/educational institutions, government) — exemption

No value recorded

The pinned estate-tax dataset holds no exemption amount for this class.

Full detail: New Jersey estate and inheritance tax page

Transfer-on-death deed

Transfer-on-death deed for real estate

None — not available for real propertyNot primary-verified

No TOD-deed statute enacted — bills pending; verify with the county recording office

· Checked July 26, 2026

Controlling statute

Not primary-verified

No TOD-deed statute enacted — bills pending; verify with the county recording office

· Checked July 26, 2026

Full detail: New Jersey transfer-on-death deed page

Small-estate procedure

Current rule

$50,000 for a surviving spouse or partner; $20,000 for another intestate heirVerified

Source: N.J.S.A. 3B:10-3 and 3B:10-4 (P.L.2015, c.232) · Effective: current · Checked August 23, 2026

Full detail: New Jersey small-estate procedure page

Medicaid long-term-care eligibility

Medicaid dataset 2026.v16

Institutional and MLTSS income limit

$2,982 per monthVerified

• Applies to: single applicant; approved income-trust rules may apply above the cap.

Source: New Jersey DMAHS Medicaid Communication 26-03 · Effective: Income, resource, CSRA, and home-equity standards effective January 1, 2026 · Checked September 2, 2026

Institutional applicant resource limit

$2,000Verified

• Applies to: single institutional applicant.

Source: New Jersey DMAHS Medicaid Communication 26-03 · Effective: Income, resource, CSRA, and home-equity standards effective January 1, 2026 · Checked September 2, 2026

Community-spouse resource allowance

$32,532 minimum to $162,660 maximumVerified

• Applies to: institutionalized applicant with a community spouse; actual allowance depends on assessed resources and adjustments.

Source: New Jersey DMAHS Medicaid Communication 26-03 · Also: New Jersey DMAHS Medicaid Communication 26-05 · Effective: Income, resource, CSRA, and home-equity standards effective January 1, 2026 · Checked September 2, 2026

Basic community-spouse maintenance deduction

$2,705 per monthVerified

• Applies to: institutionalized applicant with a community spouse; $811.50 shelter threshold and $878 utility allowance are separate calculation inputs.

Source: New Jersey DMAHS Medicaid Communication 26-05 · Effective: Basic community-spouse deduction and shelter threshold effective July 1, 2026 · Checked September 2, 2026

Home-equity limit

$1,130,000Verified

• Applies to: applicant subject to New Jersey's substantial-home-equity rule.

Source: New Jersey DMAHS Medicaid Communication 26-03 · Also: New Jersey DMAHS Medicaid Communication 26-05 · Effective: Income, resource, CSRA, and home-equity standards effective January 1, 2026 · Checked September 2, 2026

Full detail: New Jersey Medicaid eligibility page

Medicaid look-back

Medicaid dataset 2026.v16

Look-back period

60 monthsVerified

Source: New Jersey Administrative Code 10:71-4.10 · Effective: 60-month rule for transfers on or after February 8, 2006 · Checked September 2, 2026

Transfer-penalty divisor

$420.67 per dayVerified

Source: New Jersey DMAHS Medicaid Communication 26-04 · Effective: Effective April 1, 2026 · Checked September 2, 2026

How the state administers the penalty

Divide uncompensated value by the daily divisor and round down to whole days. The penalty begins when the applicant is otherwise eligible for institutional-level coverage except for the transfer penalty.Verified

Source: New Jersey DMAHS Medicaid Communication 26-04 · Also: New Jersey Administrative Code 10:71-4.10 · Effective: Effective April 1, 2026 · Checked September 2, 2026

Full detail: New Jersey Medicaid look-back page

Medicaid estate recovery

Medicaid dataset 2026.v16

Recovery scope

Expanded estate for deaths on or after April 1, 1995, including probate property and specified interests passing through joint tenancy, tenancy in common, survivorship, life estate, living trust, and other arrangements named by the rule.Verified

Source: New Jersey Administrative Code 10:49-14.1 · Effective: Expanded-estate rule for deaths on or after April 1, 1995 · Checked September 2, 2026

Controlling authority

New Jersey Administrative Code 10:49-14.1Verified

Source: New Jersey Administrative Code 10:49-14.1 · Effective: Expanded-estate rule for deaths on or after April 1, 1995 · Checked September 2, 2026

Exemptions and deferrals

No lien or recovery is enforced until the rule's conditions are met, including no surviving spouse and no surviving child who is under 21 or blind or permanently and totally disabled.Verified

Source: New Jersey Administrative Code 10:49-14.1 · Effective: Expanded-estate rule for deaths on or after April 1, 1995 · Checked September 2, 2026

Hardship waiver

DMAHS may waive or compromise when the recoverable estate is or would become the survivors' sole income-producing asset and collection would likely make a survivor eligible for public assistance or Medicaid; both parts of the test apply.Verified

Source: New Jersey Administrative Code 10:49-14.1 · Effective: Expanded-estate rule for deaths on or after April 1, 1995 · Checked September 2, 2026

Lien practice

Liens may attach to expanded-estate interests and must describe the extent of the beneficiary's interest when known. Bona-fide purchasers for fair market value are protected, with recovery redirected to the estate.Verified

Source: New Jersey Administrative Code 10:49-14.1 · Effective: Expanded-estate rule for deaths on or after April 1, 1995 · Checked September 2, 2026

Full detail: New Jersey Medicaid estate-recovery page

State income tax on retirement income

Retirement-income tax dataset 2026.v4

Social Security benefits

ExemptVerified

• New Jersey does not tax Social Security benefits.

Source: 2025 NJ-1040 Instructions · Effective: tax year 2025 · Checked December 3, 2025

Public pensions

Exempt when conditions are metVerified

• Government pensions are generally taxable after basis recovery, but an eligible taxpayer may claim New Jersey's pension exclusion when the age or disability and total-income requirements are met.
• The pension exclusion generally begins at age 62.
• A taxpayer who qualifies as blind or disabled under Social Security rules may qualify without meeting the age threshold.
• New Jersey total income must be $150,000 or less.
• For total income of $100,000 or less, the maximum pension exclusion is $100,000 on a joint return.
• Joint-return exclusion is 50% of eligible pension income at $100,001–$125,000 total income and 25% at $125,001–$150,000.
• For total income of $100,000 or less, the maximum pension exclusion is $75,000 for single, head-of-household, and qualifying-widow(er) filers.
• Single, head-of-household, and qualifying-widow(er) exclusion is 37.5% of eligible pension income at $100,001–$125,000 and 18.75% at $125,001–$150,000.
• For total income of $100,000 or less, the maximum pension exclusion is $50,000 for married-filing-separately filers.
• Married-filing-separately exclusion is 25% of eligible pension income at $100,001–$125,000 and 12.5% at $125,001–$150,000.
• The exclusion is the lesser of eligible pension income and the applicable maximum or percentage. On a joint return where only one spouse meets the age or disability test, only that spouse's pension income qualifies.
• A part-year resident uses full-year income for eligibility; fixed maxima are prorated by resident months at $100,000 or less, while percentage exclusions above $100,000 are not prorated.
• Contributions previously taxed by New Jersey are recovered before the remaining distribution is taxed.
• A noncontributory pension is fully taxable before any available pension exclusion; a contributory plan is taxed after basis recovery.

Source: 2025 NJ-1040 Instructions · Effective: tax year 2025 · Checked December 3, 2025

Private pensions

Exempt when conditions are metVerified

• Private pensions and annuities are taxable after basis recovery, with a conditional pension exclusion for eligible age or disabled taxpayers at total income of $150,000 or less.
• The pension exclusion generally begins at age 62.
• A taxpayer who qualifies as blind or disabled under Social Security rules may qualify without meeting the age threshold.
• New Jersey total income must be $150,000 or less.
• For total income of $100,000 or less, the maximum pension exclusion is $100,000 on a joint return.
• Joint-return exclusion is 50% of eligible pension income at $100,001–$125,000 total income and 25% at $125,001–$150,000.
• For total income of $100,000 or less, the maximum pension exclusion is $75,000 for single, head-of-household, and qualifying-widow(er) filers.
• Single, head-of-household, and qualifying-widow(er) exclusion is 37.5% of eligible pension income at $100,001–$125,000 and 18.75% at $125,001–$150,000.
• For total income of $100,000 or less, the maximum pension exclusion is $50,000 for married-filing-separately filers.
• Married-filing-separately exclusion is 25% of eligible pension income at $100,001–$125,000 and 12.5% at $125,001–$150,000.
• The exclusion is the lesser of eligible pension income and the applicable maximum or percentage. On a joint return where only one spouse meets the age or disability test, only that spouse's pension income qualifies.
• A part-year resident uses full-year income for eligibility; fixed maxima are prorated by resident months at $100,000 or less, while percentage exclusions above $100,000 are not prorated.
• Contributions previously taxed by New Jersey are recovered before the remaining distribution is taxed.
• A noncontributory pension is fully taxable before any available pension exclusion; a contributory plan is taxed after basis recovery.

Source: 2025 NJ-1040 Instructions · Effective: tax year 2025 · Checked December 3, 2025

IRA and 401(k) distributions

Exempt when conditions are metVerified

• 401(k) distributions and taxable IRA earnings are taxed after New Jersey basis adjustments; qualified Roth and rollover amounts remain excluded, and an eligible pension exclusion may further reduce taxable income.
• The pension exclusion generally begins at age 62.
• A taxpayer who qualifies as blind or disabled under Social Security rules may qualify without meeting the age threshold.
• New Jersey total income must be $150,000 or less.
• For total income of $100,000 or less, the maximum pension exclusion is $100,000 on a joint return.
• Joint-return exclusion is 50% of eligible pension income at $100,001–$125,000 total income and 25% at $125,001–$150,000.
• For total income of $100,000 or less, the maximum pension exclusion is $75,000 for single, head-of-household, and qualifying-widow(er) filers.
• Single, head-of-household, and qualifying-widow(er) exclusion is 37.5% of eligible pension income at $100,001–$125,000 and 18.75% at $125,001–$150,000.
• For total income of $100,000 or less, the maximum pension exclusion is $50,000 for married-filing-separately filers.
• Married-filing-separately exclusion is 25% of eligible pension income at $100,001–$125,000 and 12.5% at $125,001–$150,000.
• The exclusion is the lesser of eligible pension income and the applicable maximum or percentage. On a joint return where only one spouse meets the age or disability test, only that spouse's pension income qualifies.
• A part-year resident uses full-year income for eligibility; fixed maxima are prorated by resident months at $100,000 or less, while percentage exclusions above $100,000 are not prorated.
• Contributions previously taxed by New Jersey are recovered before the remaining distribution is taxed.
• Traditional IRA earnings and untaxed rollover amounts are taxable when withdrawn; qualified federal rollovers and qualified Roth distributions remain deferred or excluded, while nonqualified Roth earnings may be taxable.

Source: 2025 NJ-1040 Instructions · Effective: tax year 2025 · Checked December 3, 2025

Military retirement pay

ExemptVerified

• U.S. military pensions and qualifying survivor-benefit payments are exempt; federal civil-service pensions remain taxable even when based on military-service credit.
• The pension must be from the U.S. Army, Navy, Air Force, Marine Corps, or Coast Guard; a federal civil-service pension does not become military retirement because it includes military-service credit.
• Qualifying military survivor-benefit payments are included.

Source: 2025 NJ-1040 Instructions · Effective: tax year 2025 · Checked December 3, 2025

Full detail: Retirement-income tax dataset, all states (JSON)

About this page

This page assembles entries from datasets the site already publishes; it adds no figure of its own. Entries marked “Not yet verified” or “Pending” have no primary-source value in the underlying dataset yet. Rules change, so confirm anything you plan to act on with the source, the state agency, or a licensed attorney.

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