What Are the Inheritance Tax Rates in New Jersey?


Quick Answer

New Jersey has inheritance tax rates between 11 and 16 percent, according to the state's treasury department. As of 2015, New Jersey does not impose the inheritance tax on class-A beneficiaries, which include the father, mother, descendants, spouses, and civil union partners or domestic partners of the deceased.

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Full Answer

Class C beneficiaries are subject to tax rates between 11 and 16 percent and include siblings of the deceased, partners of the children of the deceased and surviving partners of the children of the deceased, explains the Department of the Treasury of the State of New Jersey. The first $25,000 of a class C beneficiary's inheritance is not subject to taxes.

New Jersey taxes the inheritances of other beneficiaries with rates between 15 and 16 percent. There is no tax for inheritance with an aggregate value under $500. Life insurance proceeds paid to a named beneficiary and charitable transfers of inheritance to churches, hospitals, and schools are not subject to New Jersey state taxes, notes New Jersey's treasury department.

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