Verified against New Jersey Division of Taxation · Updated August 27, 2026
New Jersey (NJ) Inheritance Tax in 2026: Rates, Exemptions & Calculator
New Jersey fully exempts a broad Class A — spouses, domestic and civil union partners, parents, grandparents, children, stepchildren, and further descendants. Siblings and a child's spouse (Class C) get a $25,000 exemption before real rates apply; everyone else (Class D) gets no exemption at all.
New Jersey inheritance tax rates and exemptions by relationship (2026)
New Jersey sorts beneficiaries into classes based on their relationship to the person who died. Each class has its own exemption amount (if any) and tax rate — here's the full breakdown:
| Relationship to the deceased | Exemption | Rate |
|---|---|---|
| Class A — spouse/domestic or civil union partner, parents, grandparents, children, stepchildren, grandchildren (fully exempt) | — | Exempt |
| Class C — siblings, a child's spouse or civil union partner | $25,000 | 11.0% – 16.0% |
| Class D — everyone else (aunts, uncles, nieces, nephews, cousins, unrelated individuals) | None | 15.0% – 16.0% |
| Class E — charities and exempt organizations (fully exempt) | — | Exempt |
Class C — siblings, a child's spouse or civil union partner: bracket schedule
Applied to the amount left after the $25,000 exemption.
| Taxable amount | Rate |
|---|---|
| $25,001 – $1,100,000 | 11.0% |
| $1,100,000 – $1,400,000 | 13.0% |
| $1,400,000 – $1,700,000 | 14.0% |
| Over $1,700,000 | 16.0% |
Class D — everyone else (aunts, uncles, nieces, nephews, cousins, unrelated individuals): bracket schedule
Applied from the first dollar — no exemption.
| Taxable amount | Rate |
|---|---|
| $0 – $700,000 | 15.0% |
| Over $700,000 | 16.0% |
The New Jersey inheritance tax calculator asks for the heir's relationship, the amount inherited, and the date of death, then runs the Class A/C/D schedule below, including Class C's $25,000 exemption and the progressive brackets for both taxed classes. Civil union and domestic partners are treated as Class A, exactly as the statute does.
Calculate New Jersey inheritance tax for your situationWorked example
A sibling is Class C, which gets a $25,000 exemption. The remaining $25,000 is taxed at Class C's first bracket rate of 11%, for $2,750 in tax.
Rules worth knowing
- Stepchildren are fully exempt (Class A) via their own dedicated statute (N.J.S.A. 54:34-2.1), which states they're taxed "at the same rates and with the same exemptions" as a biological child — not just informal DOR guidance.
- Transfers under $500 are exempt outright, regardless of which class the beneficiary falls into.
- Life insurance proceeds paid to a named beneficiary (not the estate) are separately exempt under N.J.S.A. 54:34-4.
Filing deadline
This calculator doesn't independently track New Jersey's specific filing-deadline text — confirm the exact due date with the NJ Division of Taxation.
How New Jersey compares to the other states with an inheritance tax
Only five states still levy an inheritance tax, and each draws the line between "close family" and everyone else differently — here's how New Jersey stacks up.
| State | Closest relatives exempt? | Highest taxed rate | Notable quirk |
|---|---|---|---|
| Maryland | Spouse, parents/grandparents, children+descendants, siblings | 10.0% | $1,000 exemption is a cliff, not a deduction |
| Nebraska | Spouse only | 15.0% | Anyone under 22 owes $0, regardless of relationship |
| Pennsylvania | Spouse only | 15.0% | No exemption amounts — flat rates from the first dollar |
| Kentucky | Spouse, parent, child, stepchild, grandchild, sibling | 16.0% | Grandparents are NOT exempt — taxed as Class C |
| New Jersey (this page) | Spouse, parents, grandparents, children, stepchildren | 16.0% | Stepchildren fully exempt, same as biological children |
Frequently asked questions
Who are Class A beneficiaries in New Jersey?
Class A is fully exempt and covers a spouse or domestic/civil union partner, parents, grandparents, children, stepchildren, grandchildren, and further lineal descendants. Class C (siblings and a child's spouse or civil union partner) gets a $25,000 exemption and then pays 11%–16%. Class D (everyone else, including nieces, nephews, aunts, uncles, cousins, and unrelated individuals) gets no exemption and pays 15% up to $700,000 and 16% above that. Class E (charities and exempt organizations) is exempt.
Does New Jersey still have an estate tax?
No. New Jersey repealed its estate tax for deaths on or after January 1, 2018. The inheritance tax on this page was kept and still applies to Class C and Class D beneficiaries.
How much is New Jersey inheritance tax for a sibling?
Siblings are Class C, so the first $25,000 is exempt and the amount above that is taxed starting at 11%. A $50,000 inheritance to a sibling, for example, produces $2,750 in tax — the worked example above. Transfers under $500 are exempt outright for every class.
More on inheritance tax
For how the calculation works across all five states that still charge inheritance tax, how New Jersey's rules fit into the bigger picture, and strategies to reduce what's owed, see the full inheritance tax guide.
How New Jersey compares: on the same $500,000 inheritance for a 2026 death, an adult child owes $0 here, a niece or nephew $75,000, and an unrelated heir $75,000 — against a range of $50,000 to $75,000 for a niece across all five inheritance-tax states. The full side-by-side table, with a downloadable CSV, is in Inheritance and estate tax by state, 2026.