Verified against New Jersey Division of Taxation · Updated August 27, 2026
New Jersey 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.
Calculate New Jersey inheritance tax for your situationWho owes New Jersey inheritance tax
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 |
Worked 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.
More on inheritance tax
For how the calculation works across all five states that still charge inheritance tax, exemptions worth knowing about, and strategies to reduce what's owed, see the full inheritance tax guide.