05 Jun Does New Jersey tax seniors on inheritances?

Q. Does New Jersey tax seniors on inheritances, and if so, how much?
— Senior

A. In this case, age doesn’t matter.

The New Jersey inheritance tax does not take into consideration the age of the decedent or the recipient of the property in determining the tax to be assessed, if any.

Instead, the tax is based on the relationship of the recipient of property to the decedent, the type of property transferred and the location of the property, said Catherine Romania, an estate planning attorney with Witman Stadtmauer in Florham Park.

New Jersey does not tax real or tangible personal property located outside the state of New Jersey that was owned by the decedent, she said.

Additionally, transfers at death or gifts made within three years of death to individuals who are Class A beneficiaries — namely a spouse, civil union or domestic partner, parent, grandparent, descendant, stepchild or mutually acknowledged child — and to charities will not incur an inheritance tax, Romania said.

“Anyone else may incur a tax if the value of the assets received equal or exceed $500 unless it is an asset specifically exempt from the tax, such as life insurance paid to a named beneficiary,” she said. “Class C beneficiaries — consisting of siblings, spouse or surviving spouse or civil union partner or surviving civil union partner of a child of decedent — may receive up to $25,000 of assets before tax is assessed.”

Once it is determined that all or a portion of the transfer is not exempt, the rate of tax is determined by the relationship between the decedent and the recipient of the property and the value of the property, Romania said, adding that the tax amount ranges between 11% to 16% of the amount of the transfer.

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This story was originally published in June 2026. 

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