Taxes

1. State Inheritance Tax

The revised New Jersey Transfer Inheritance Tax Act of 1985 provides for four classifications of beneficiaries.

  1. Class A – Spouses, children, step-children, grandchildren, parents, and grandparents are not subject to state inheritance tax.
  2. Class B – This class was eliminated in a 1963 revision of the inheritance tax law.
  3. Class C – Brothers, sisters, daughters-in-law, and sons-in-law are exempt from inheritance tax for the first $25,000. They are subject to 11 percent tax for bequests in excess of $25,000 and up to $1,100,000; 13 percent tax for bequests in excess of $1,100,00 and up to $1,400,000; 14 percent tax for bequests in excess of $1,400,000 and up to $1,700,000; and 16 percent tax for bequests in excess of $1,700,000.
  4. Class D – All other individuals that do not fall into Class A or C are exempt from tax if the total amount of the bequest does not exceed $499. These individuals are subject to 15 percent tax on all bequests over $499 and up to $700,000, and 16% tax on bequests in excess of $700,000.
  5. Class E – Charitable or non-profit entities are exempt from inheritance tax.

Further information concerning state inheritance tax may be obtained by contacting the New Jersey Transfer Inheritance and Estate Tax Division.

Disclaimer: The information provided on this page is for informational purposes only and should not be construed as legal, financial, or tax advice. Tax obligations can vary based on individual circumstances, and requirements may change over time. Please consult your accountant, tax professional, or financial advisor to obtain guidance specific to your situation. The Morris County Surrogate’s Court does not guarantee the accuracy, completeness, or applicability of any external tax information referenced here

2. NJ Estate Tax

Current law states there will be no NJ Estate Tax on or after 2018.

3. Federal Estate Tax

Starting January 1, 2026, the federal lifetime gift, estate, and generation-skipping transfer tax exemptions will increase to $15 million per person (or $30 million for married couples), with future adjustments indexed for inflation.

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