New Jersey estate facts · Taxes
Do nieces and nephews pay New Jersey inheritance tax?
The short answer
Yes. Nieces, nephews, cousins and friends are Class D: 15% on amounts up to $700,000 and 16% above, with no exemption beyond $500.
The details
Class D is everyone who isn't Class A, C or E. That includes nieces, nephews, aunts, uncles, cousins, friends and step-grandchildren.
Transfers under $500 are exempt. Above that, the entire amount is taxed: 15% on the first $700,000 and 16% on anything above $700,000.
Estates with Class D beneficiaries file a full inheritance tax return, and the state issues the waiver needed to transfer real estate once the tax is addressed.
Related estate facts
Other questions families ask.
Do siblings pay New Jersey inheritance tax?
Yes, above $25,000. Brothers and sisters are Class C beneficiaries: the first $25,000 is exempt, and the rest is taxed at 11% to 16%.
Read the answer → TaxesIs life insurance subject to New Jersey inheritance tax?
Not when it's paid directly to a named beneficiary. That's true even for siblings, nieces, nephews and friends.
Read the answer → Selling the houseDoes an inherited New Jersey house need a tax waiver before it can be sold?
Usually, yes. New Jersey real estate generally needs an inheritance tax waiver from the Division of Taxation before it can be transferred.
Read the answer →Talk to a real person
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