Do I Owe New Jersey Inheritance Tax If I Live Out of State?

Your own address doesn't matter here — and the 2018 estate tax repeal doesn't help an out-of-state heir either.

N.J.S.A. §54:34-1 et seq.

Quick answer: yes, potentially — where you live is irrelevant. What matters is where the decedent lived (or owned property) and how you're related to them. Check your own numbers with the New Jersey inheritance tax calculator.

It follows the decedent, never the heir

New Jersey inheritance tax is triggered by the decedent's residency and property, not the beneficiary's. A sibling living in Arizona inheriting from a New Jersey resident is still Class C and owes the same 11%-16% as if that sibling lived in New Jersey — there's no exemption or discount for being an out-of-state recipient.

The 2018 repeal doesn't reach this tax at all

Confirmed current: the estate tax and the inheritance tax are separate taxes; New Jersey's estate tax, levied on the estate itself based on its total size, was abolished January 1, 2018 — but the inheritance tax, which taxes each beneficiary by class, was untouched by that repeal and remains fully in force.

Your class doesn't change with your zip code

Class A, C, D, and E depend entirely on the beneficiary's relationship to the decedent, never on residency. An out-of-state sibling is still Class C; an out-of-state friend is still Class D — the classification, and the rate that comes with it, travels with the relationship, not the address.

Nonresident decedents can still trigger this tax

A transfer inheritance tax return must be filed, and the tax paid, on real and personal property located in New Jersey even when the decedent lived in another state at death — within the same 8-month deadline that applies to resident decedents.

Facing probate in New Jersey?

A local probate attorney can review your estate — many offer a free consultation.

Talk to a New Jersey attorney

See Rates & Who Pays for the full class-based breakdown that applies regardless of where any beneficiary lives.

Living out of state — frequently asked questions

I live in another state - do I still owe New Jersey inheritance tax?

Yes, potentially. If the person who died was a New Jersey resident, or a nonresident who owned New Jersey real estate or tangible property, your inheritance tax class and rate depend on your relationship to them, not on where you personally live.

Does New Jersey's 2018 estate tax repeal mean out-of-state heirs owe nothing?

No. The estate tax and the inheritance tax are separate taxes. New Jersey repealed the estate tax in 2018, but the inheritance tax, which taxes beneficiaries by class rather than the estate as a whole, is still fully in force.

Does living out of state at least get an out-of-state heir a lower class?

No. Class A, C, D, and E depend entirely on the beneficiary's relationship to the decedent, never on residency. An out-of-state sibling is still Class C; an out-of-state friend is still Class D.

Does a nonresident decedent's New Jersey property still trigger this tax?

Yes — a transfer inheritance tax return must be filed, and the tax paid, on real and personal property located in New Jersey even when the decedent lived in another state at death, within 8 months of death.

This page provides general guidance only and is not legal or tax advice. Based on N.J.S.A. Title 54, Subtitle 5. Confirm current figures with the New Jersey Division of Taxation or a licensed attorney before acting.