What is New Jersey Estate Tax?

Posted by ANGELA RICH HARTMANN | Jan 19, 2021

New Jersey does not presently have an Estate Tax

The New Jersey Estate Tax Law was enacted in 1934 and phased out to complete elimination for estates of decedents dying on or after January 1, 2018.  Originally meant to compensate for any excess of the maximum credit allowable under the Federal Estate Tax law over the amount of death taxes paid by a resident decedent, it was impacted by the changes in State and Federal Law. 

State and Federal Changes in Law impacts New Jersey Estate Tax

While remaining largely unchanged its first 65 years, the Inheritance Tax Phase for Class A beneficiaries and the creation of the $25,000.00 exemption for Class C beneficiaries caused great impact by increasing the number of estates subject to the New Jersey Estate Tax.  Congress made changes to Federal Estate Law for period of the repeal of the State death credit, during which time the New Jersey Estate Tax would have been eliminated.  New Jersey amended its Estate Tax Law so that it would produce a tax based on the maximum state death credit that would have been allowable prior to the Federal amendment without taking into account any subsequent changes in Federal Law. 

Phasing Out of New Jersey Estate Tax

By 2016, New Jersey statue amended the phasing out of New Jersey Estate Tax by providing an exemption for the first $2,000,000.00 of taxable estates for decedents dying in 2017, and the complete elimination of the New Jersey Estate Tax for decedents dying on or after January 1, 2018. 

Contact Hartmann Law 

For more information about Federal and State Estate and Inheritance Tax or about your Estate Planning needs, contact Hartmann Law today.

About the Author


Angela Rich Hartmann is a New Jersey attorney serving clients in the areas of estate, business, and real estate law.