Q:

What are the tax rates for New Jersey inheritances?

A:

Quick Answer

The tax rates for New Jersey inheritances is dependent upon the amount received and the relationship between the deceased and person collecting, as noted by the New Jersey department of the treasury. The rates range from 11 percent to 16 percent.

Continue Reading
What are the tax rates for New Jersey inheritances?
Credit: Image Source Image Source Getty Images

Full Answer

Tax rates are determined by beneficiary classes ranging from "A" to "E", states the New Jersey division of taxation.

Class A constitutes family members such as parents, grandparents, descendants, spouses, civil union partners, or domestic partners. If in this bracket, there is no tax to be paid if decedent died on or after July 1, 1988.

Class C constitutes siblings and children of the deceased which includes the spouse of a child of the deceased or civil union partner of the child of the deceased. This class gets taxed based on the amount being received. The first $25,000 isn't taxed. The next $1,075,000 is taxed at 11 percent. The next $300,000 is taxed at 13 percent. The next $300,000 is taxed at 14 percent. Anything over $1,700,000 is taxed at 16 percent.

Class D constitutes anyone who didn't fall into Class A or C. The first $700,00 is taxed at 15 percent. Anything over $700,00 is taxed at 16 percent.

Class E is for money that is left to the state or any public or charitable purposes. This category is exempt from taxes.

Learn more about Taxes
Sources:

Related Questions

Explore