New Jersey estate facts · Taxes
Do siblings pay New Jersey inheritance tax?
The short answer
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%.
The details
Class C covers brothers and sisters (including half-siblings) and a child's spouse or civil union partner. The first $25,000 a Class C beneficiary receives is exempt.
Above that, the rate is 11% on amounts up to $1,100,000, then 13%, 14% and 16% in higher bands.
When any beneficiary is Class C, the estate generally files a full New Jersey inheritance tax return, and the state issues a tax waiver before real estate can be transferred.
Related estate facts
Other questions families ask.
Do nieces and nephews pay New Jersey inheritance tax?
Yes. Nieces, nephews, cousins and friends are Class D: 15% on amounts up to $700,000 and 16% above, with no exemption beyond $500.
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 → 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 →Talk to a real person
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