New Jersey has had an Inheritance Tax since 1892, when a tax was imposed on property transferred from a deceased person to a beneficiary.
Inheritance Tax is based on who specifically will receive or has received a decedent’s assets, and how much each beneficiary is entitled to receive.
Resident decedent. Tax is imposed on the transfer of real and tangible personal property located in New Jersey and on all intangible personal property.
Nonresident decedent. Tax is imposed only on the transfer of real and tangible personal property located in New Jersey.
New Jersey’s Estate Tax originated in 1934.
The New Jersey Estate Tax is based on the size of the entire estate and does not break down the distribution of assets beyond exemptions for spouses and charities.
In all cases, if the decedent was not a resident of New Jersey, there is no New Jersey Estate Tax due.
In New Jersey, the Inheritance Tax is a credit against the Estate Tax; an estate pays only the higher of the two.
On January 1, 2018, under current law, the New Jersey Estate Tax will no longer be imposed for individuals who die on or after that date.