Buried in Work StaffIf you are settling an estate in New Jersey, or planning your own, the first question is usually whether the state takes a share. This page sets out what applies as of 2026, who pays it, and what else to expect.
Does New Jersey Have an Estate Tax?
No. New Jersey has no state estate tax. It was eliminated for deaths on or after January 1, 2018. There is no New Jersey estate tax return to file, whatever the estate is worth.
Does New Jersey Have an Inheritance Tax?
Yes. New Jersey does have an inheritance tax.
New Jersey inheritance tax depends on the beneficiary’s relationship to the person who died. Spouses, children, grandchildren and parents are exempt, while siblings, and beneficiaries with no family relationship, may be taxed. Confirm the current classes and rates with the New Jersey Division of Taxation.
What May Still Apply
The state inheritance tax is not the only thing to account for. The federal estate tax applies anywhere in the United States, but only to large estates: for someone who dies in 2026, the estate has to exceed $15 million before it applies, and roughly twice that for a married couple who plan for it. Most estates are nowhere near that figure.
Two income tax filings are far more common than any death tax. A final individual income tax return is due for the year of death if the person met the usual filing requirements, and the estate itself may need its own income tax return if it receives income after the date of death, such as interest, dividends or rent.
Property you own in another state can be taxed by that state, even when your home state charges nothing. A holiday home or land in a state that does levy an estate tax is the usual way this catches people out.
What This Means in Practice
For most New Jersey families, the work after a death is administrative rather than tax driven: locating the will, opening probate if it is needed, gathering account information, paying valid debts, and transferring what remains. Assets that pass by beneficiary designation, joint ownership or a trust may transfer without probate at all.
Inherited money is generally not taxable income to the person receiving it, although income those assets produce afterwards usually is. Inherited property also normally takes a new tax basis equal to its value at the date of death, which matters a great deal if it is later sold, so it is worth getting a date-of-death valuation for real estate and other significant assets.
Getting Advice
Tax rules change, and the details of any one estate can shift the answer. Confirm the current position with the New Jersey Department of Revenue, and speak to an estate attorney or tax professional licensed in New Jersey before relying on general guidance for a specific estate.
