New Jersey Inheritance Tax: Rates & Who Pays

Quick answer: Class A is exempt; Class C (siblings) gets $25,000 exempt then 11%-16%; Class D (everyone else) gets 15%-16% with barely any exemption. Run your own numbers in the New Jersey inheritance tax calculator.

Class C's full graduated schedule

Confirmed current: siblings receive a $25,000 exemption and pay 11% on amounts from $25,001 to $1,100,000; 13% on amounts from $1,100,001 to $1,400,000; 14% on amounts from $1,400,001 to $1,700,000; and 16% on amounts above $1,700,000. The same schedule covers a son-in-law or daughter-in-law, including a civil union partner of the decedent's child.

Class D's simpler, steeper two tiers

Class D — nieces, nephews, aunts, uncles, cousins, friends, and unmarried partners — pays 15% on the first $700,000 inherited and 16% above that, with essentially no exemption; only transfers under $500 escape entirely.

Why there's no Class B

New Jersey's classes run A, C, D, and E — there genuinely is no Class B. It existed in the original statute but was eliminated by the legislature back in 1963, and the letter has simply never been reused since.

Stepchildren count; step-grandchildren don't automatically

Stepchildren are explicitly included in Class A and owe nothing. But that inclusion doesn't extend a generation further — a step-grandchild isn't automatically Class A, which trips up more families than you'd expect when a blended family's estate plan reaches the next generation.

Facing probate in New Jersey?

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See New Jersey Inheritance Tax Exemptions for the asset-specific carve-outs that apply on top of these class-based rates.

Rates & who pays — frequently asked questions

What is the exact Class C rate schedule?

After the $25,000 exemption: 11% on the next $1,075,000 (up to $1,100,000 total inherited), 13% on the next $300,000 (to $1,400,000), 14% on the next $300,000 (to $1,700,000), and 16% on anything above $1,700,000.

What is the exact Class D rate schedule?

15% on the first $700,000 inherited, and 16% on anything above that — with no meaningful exemption, only amounts under $500 escape the tax entirely.

Why is there no Class B in New Jersey?

Class B was eliminated by statute in 1963. The classes that remain today are A, C, D, and E — the letter B simply doesn't appear anywhere in current New Jersey inheritance tax law.

Are stepchildren and step-grandchildren treated the same?

No. Stepchildren are Class A and exempt. Step-grandchildren are not automatically included in Class A, a distinction that surprises many families structuring their estate plans.

This page provides general guidance only and is not legal or tax advice. Based on N.J.S.A. §54:34-2. Confirm current figures with the New Jersey Division of Taxation or a licensed attorney before acting.