• Receives the gift from the deceased person; or
  
• Receives a gift from a person in anticipation of their death.

Calculating the Tax

The rate of tax depends upon the relationship of the deceased and the person receiving the gift.

If the gift is between the deceased and:

• Spouse – there is no inheritance tax.
  
• Parent, grandparent, child, grandchild –There is no inheritance tax.
  
• Brother, sister, daughter-in-law, son-in-law:
  
  • Gifts up to $25,000 are tax exempt.
    
  • Gifts over $25,000 to $1,100,000 are taxed at 11%
    
  • Gifts over $1,100,000 to $1,400,000 are taxed at 13%
    
  • Gifts over $1,400,000 to $1,700,000 are taxed at 14%
    
  • Gifts over $1,700,000 are taxed at 16%
• Gifts to all others:
  
  • Gifts up to $700,000 are taxed at 15%
    
  • Gifts over $700,000 are taxed at 16%
• Gifts to charities, religious organizations, State of New Jersey, a town or educational institution are exempt.
  
• All gifts to any type of beneficiary under $500 are exempt

Who Needs to File

A New Jersey inheritance tax return must be filed by:

• A deceased New Jersey resident for:
  
  • all real or tangible property located in New Jersey; and
    
  • intangible property no matter where it is located.
• A deceased person who was not a resident of New Jersey for:
  
  • real or tangible property located in New Jersey.

Time Period to File

If the estate is required to file an inheritance tax return, the return must be filed within 8 months after the date of death, whether or not any tax is payable.

Deductions

Deductions from Inheritance Tax include:

• Reasonable funeral expenses;
  
• Ordinary administration expenses;
  
• Executor’s expenses and commissions;
  
• Attorney fees;
  
• Expenses of last illness and debts (with limited exceptions);
  
• State, county and local taxes up to date of death;
  
• Transfer taxes paid on property located outside of the state - this does not include Federal Estate Tax.

Contact Information

New Jersey Inheritance Tax Forms can be obtained:

• Via Phone: 609-292-5033
  

• Via Mail:
  Transfer Inheritance Tax Branch
  50 Barrack Street, P.O. Box 249
  Trenton, New Jersey 08646-0249
  

• Via Internet:
  http://www.state.nj.us/treasury/taxation/txprnt.htm