Official Site of The State of New Jersey

Inheritance and Estate Tax

Inheritance Tax. New Jersey imposes an Inheritance Tax on the transfer of assets from a deceased person (decedent) to someone else (beneficiary). The tax amount depends on several factors:

• Who the beneficiaries are and how they are related to the decedent;
• The date of death value of the assets (and debts) that the decedent owned;
• What kind of assets the decedent owned;
• Whether the decedent lived in New Jersey or another state.

Where the beneficiaries lived is not a factor.

There are two types of Inheritance Tax, resident and non-resident. This is based on where the decedent legally lived when they passed away.

• Resident Decedent – Someone who died as a legal resident of New Jersey. Almost anything a decedent owned can be taxed, depending on who inherits the decedent’s property. This can include houses or real estate, bank accounts, stocks, bonds, cars, and other tangible personal property.
• Non-Resident Decedent – Someone who died as a legal resident of another state or foreign country. People who did not live in New Jersey, but owned certain types of property in New Jersey (usually real estate), may be subject to New Jersey Non-Resident Inheritance Tax.

Estate Tax. New Jersey Estate Tax is no longer imposed for individuals who died on or after January 1, 2018.