New Jersey estate facts · Taxes
Do children pay New Jersey inheritance tax?
The short answer
No. Children are Class A beneficiaries, and Class A beneficiaries owe no New Jersey inheritance tax, however large the inheritance.
The details
New Jersey sorts beneficiaries into classes. Class A includes a spouse or civil union partner, children and stepchildren, grandchildren and other lineal descendants, parents and grandparents. Transfers to Class A beneficiaries are not taxed.
Note one exception that surprises families: step-grandchildren are not Class A. They fall into Class D, which is taxed.
Charities and certain institutions (Class E) are also exempt.
Related estate facts
Other questions families ask.
Does 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 → TaxesDo 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 → TaxesDo 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.
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