New Jersey Estate Tax Calculator

Pri Geens

Pri Geens

Loading calculator…

New Jersey Estate Tax Calculator

Estimate the federal estate tax AND the New Jersey inheritance tax on a New Jersey decedent’s estate. New Jersey repealed its estate tax for deaths on or after January 1, 2018, but keeps a beneficiary-level inheritance tax: Class A heirs (spouse, partners, parents, children, grandchildren) and charities pay nothing, siblings and in-laws pay 11% to 16% above a $25,000 exemption, and everyone else pays 15% to 16%. Three modes: estimate the tax, test a larger estate, or solve for the years of gifting needed to reach zero. Fields marked * are required; Calculate names any left empty.

New Jersey rules this calculator enforces: NO state estate tax for deaths on or after January 1, 2018 (repealed by the 2016 reform; former exemption $675,000), so no New Jersey estate tax return is filed; YES inheritance tax (NJSA 54:13-1 et seq., Form IT-R due 8 months after death): Class A (surviving spouse, civil union partner, domestic partner, parents, grandparents, children, stepchildren, grandchildren and other lineal issue) and Class E (charities, educational institutions) EXEMPT; Class C (siblings, sons- and daughters-in-law) graduated 11% to 16% above a $25,000 exemption; Class D (all others) 15% on the first $700,000 and 16% above with no exemption (schedules VERIFY); no gift tax; common-law (equitable distribution) state, not community property; spousal elective share of one-third of the augmented estate (NJSA 3B:8-1; VERIFY), modeled on the net estate; small-estate affidavit where personal property is $50,000 or less with a surviving spouse or $20,000 or less without (NJSA 3B:10-4; VERIFY); probate venue in the Surrogate’s Court of the county of domicile (21 counties).
Federal: unified estate and gift schedule topping at 40%; basic exclusion $13,610,000 (2024), $13,990,000 (2025), $15,000,000 (2026); federal portability (DSUE) allowed; unlimited marital and charitable deductions; GST 40%.
Sets the federal exclusion and annual gift exclusion. NJ inheritance tax applies in all years.
Surrogate’s Court venue; the inheritance tax is state-wide.Required. Please choose a New Jersey county.
Select a county to see the Surrogate’s Court venue, the small-estate threshold, and the federal exclusion for the selected year.

Assets at date of death

Home, condo, land, rental buildings at fair market value.Enter 0 or a positive amount.
Checking, savings, CDs, stocks, bonds, mutual funds.Enter 0 or a positive amount.
IRAs, 401(k)s, 403(b)s, pensions, annuity contracts.Enter 0 or a positive amount.
Death benefit includible when the decedent held any incident of ownership.Enter 0 or a positive amount.
Closely held business, vehicles, equipment, receivables, trusts includible in the estate.Enter 0 or a positive amount.
New Jersey is a common-law (equitable distribution) state, not community property, so no community-property halving or double step-up applies.

Debts and administration costs

Deductible obligations of the decedent.Enter 0 or a positive amount.
Deductible when paid by the estate.Enter 0 or a positive amount.
Deductible administration expense.Enter a percentage between 0 and 25.
Filing fees, publication, appraisal costs.Enter 0 or a positive amount.
Deductible if not compensated by insurance.Enter 0 or a positive amount.

Bequests, marital status and inheritance-tax classes

Unlimited federal marital deduction; Class A (spouse, partners, parents, children, grandchildren) exempt from NJ inheritance tax.Enter 0 or a positive amount.
Unlimited federal deduction; Class E exempt from NJ inheritance tax.Enter 0 or a positive amount.
Siblings, sons- and daughters-in-law. Graduated 11% to 16% above a $25,000 exemption (VERIFY).Enter 0 or a positive amount.
Friends, nieces/nephews, unrelated parties, most entities. 15% to 16% with no exemption (VERIFY).Enter 0 or a positive amount.
Class A and Class E shares take free of New Jersey inheritance tax; enter them only in the spouse-bequest and charitable fields or leave them out. The Class C and Class D schedules below are simplified aggregate models flagged VERIFY.

Prior gifts, portability and GST

Post-1976 taxable gifts; they consume the federal exclusion. New Jersey has no gift tax.Enter 0 or a positive amount.
Federal portability; requires a timely federal Form 706 election.Enter 0 or a positive amount.
Federal GST at a flat 40% on Form 706 Schedule R. Grandchildren are Class A (exempt) for NJ inheritance tax.Enter 0 or a positive amount.
Equals the federal basic exclusion for the year of death.Enter 0 or a positive amount.

Gifting plan

Required in gifting mode. Annual-exclusion gifts are not taxable gifts.Required in gifting mode. Enter 1 or more donees.
Amounts above the annual exclusion become taxable gifts.Enter 0 or a positive amount.
Gifts carry over basis and lose the step-up at death.Enter 0 or a positive amount.
If the tax cannot be eliminated inside this horizon, the calculator says so.Enter a whole number between 1 and 200.

How it works

  • New Jersey taxes beneficiaries, not the estate. The New Jersey estate tax was repealed for deaths on or after January 1, 2018; the surviving transfer tax is the inheritance tax (Form IT-R, due 8 months after death): Class A and Class E exempt, Class C 11% to 16% above $25,000, Class D 15% to 16% with no exemption (schedules VERIFY).
  • Federal estate tax also applies above the basic exclusion using the unified 18% to 40% schedule; the federal GST applies at 40% to direct skips above the allocated GST exemption (grandchildren remain Class A exempt for New Jersey).
  • No community property. New Jersey is a common-law state, so no halving of community assets and no double basis step-up.
  • Portability is federal only. A surviving spouse may inherit the unused federal exclusion (DSUE) with a timely Form 706; New Jersey has no state exclusion to port (its estate tax is repealed).
  • Elective share. A surviving spouse may elect one-third of the augmented estate under NJSA 3B:8-1 (VERIFY); modeled here on the net estate.
  • Small estates. Small-estate administration / affidavit under NJSA 3B:10-4 is available where personal property is $50,000 or less with a surviving spouse, or $20,000 or less without; verify the current figures.
  • Binding factor names what controls the result: the federal basic exclusion, the federal unified schedule, the New Jersey inheritance tax, or the GST.
  • Gifting mode uses the guarded bisection solver (60 expansions, 90 iterations, rounded up). The entered Class C/D inheritance-tax shares are not reduced by the gifting plan; only the federal base is.
  • Gifting is not free. Carryover basis loses the step-up; the deferred gain is netted against the tax saved.

Sources

  • NJSA 54:13-1 et seq. and Form IT-R (New Jersey inheritance tax: Class A and Class E exempt; Class C 11% to 16% above a $25,000 exemption; Class D 15% to 16% with no exemption; return and tax due 8 months after death — schedules VERIFY against the Division of Taxation).
  • New Jersey estate tax repealed for deaths on or after January 1, 2018 (2016 reform; former exemption $675,000); no New Jersey gift tax.
  • NJSA 3B:8-1 (spousal elective share of one-third of the augmented estate; VERIFY); NJSA 3B:10-4 (small-estate affidavit $50,000 with spouse / $20,000 without; VERIFY); Surrogate’s Court probate venue by county (21 counties).
  • IRC chapter 11 unified schedule and exclusion ($13,610,000 / $13,990,000 / $15,000,000 for 2024 / 2025 / 2026); IRC 2010 portability; IRC 2042 life insurance inclusion; IRC 2055 charitable deduction; IRC chapter 13 GST at 40%; IRC 1014 step-up and 1015 carryover basis.
  • IRS Form 706 and Form 4768 instructions (9-month deadline, 6-month filing extension).

Test cases

TC1 – Below federal, all Class A. Bergen (Hackensack), 2025, married citizen, bequest 5,000,000 to spouse, remainder to children (Class A exempt), Class C 0, Class D 0. Real 3,000,000; financial 1,500,000; retirement 1,000,000; debts 300,000; funeral 15,000; atty 2%; court 400.
Gross 5,500,000; admin 104,400; deductions 419,400; net estate 5,080,600; less marital 5,000,000 = TE 80,600. Federal $0, NJ inheritance $0, NJ estate $0, TOTAL $0. Federal headroom 13,909,400. Small estate NOT available (personal property 2,500,000).
TC2 – Above federal, with a Class D share. Essex (Newark), 2025, single. Real 8,000,000; financial 6,000,000; retirement 4,000,000; business 2,000,000; debts 500,000; funeral 20,000; atty 2%; court 400; Class D 1,000,000.
Gross 20,000,000; admin 390,400; deductions 910,400; net estate 19,089,600; TE 19,089,600 above 13,990,000. Federal 2,039,840. Class D tax 105,000 + 48,000 = 153,000. NJ estate $0. TOTAL 2,192,840. Effective 10.96%.
TC3 – Marital + DSUE + Class C share. Middlesex (New Brunswick), 2025, married 20 years, citizen spouse, bequest 8,000,000, DSUE 2,000,000, Class C 500,000 (sibling). Real 15,000,000; financial 7,000,000; life 4,000,000; debts 400,000; funeral 25,000; atty 2%; court 400.
Gross 26,000,000; admin 512,400; deductions 937,400; net estate 25,062,600; less marital 8,000,000 = TE 17,062,600; federal exclusion 15,990,000. Federal 429,040. Class C tax on 475,000 = 33,000 + 21,000 = 54,000. TOTAL 483,040. Elective share one-third = 8,354,200.
TC4 – Gifting solver, 2026, maxYears 60, Class C/D 0. Monmouth (Freehold), single. Real 9,000,000; financial 6,000,000; retirement 3,000,000; business 2,000,000; debts 300,000; funeral 15,000; atty 2%; court 400; 4 donees at 19,000.
Gross 20,000,000; admin 394,400; deductions 709,400; net estate 19,290,600; TE 19,290,600 above 15,000,000. FEDERAL 1,716,240; NJ $0. Solver: 76,000 per year; 57 YEARS removes 4,332,000 leaving TE 14,958,600 at or below the exclusion, tax $0. Saved 1,716,240.
TC5 – Small estate with a Class D share. Camden, 2025, married 5 years, citizen spouse, Class D 10,000. Financial 30,000; retirement 10,000; debts 2,000; funeral 3,000; atty 2%; court 300.
Gross 40,000; admin 1,060; deductions 6,060; net estate 33,940; TE 33,940. Federal $0; NJ estate $0; Class D tax 1,500. TOTAL 1,500. Small estate available (personal property 40,000 at or below 50,000 with spouse). Elective share one-third = 11,313.

Estimates only. Not legal, tax or financial advice. New Jersey inheritance schedules, elective share and small-estate thresholds are flagged for verification against NJSA 54:13, 3B:8 and 3B:10 and the Division of Taxation. Verify all figures with the New Jersey Division of Taxation and federal rules before relying on them.

What Is a New Jersey Estate Tax Calculator?

This calculator models transfer taxes for deaths in 2024, 2025, or 2026. In its calculations, New Jersey estate tax is always $0 because the tool treats the state estate tax as repealed for deaths on or after January 1, 2018. It separately calculates New Jersey inheritance tax for entered Class C and Class D beneficiary amounts.

The calculator determines the modeled federal estate tax, New Jersey inheritance tax, GST tax, and total transfer tax from the estate values you provide. It adds estate assets, subtracts modeled deductions and qualifying bequests, applies the selected year’s federal exclusion and any DSUE, and separately taxes entered Class C and Class D transfers.

You can use three calculation modes: estimate tax on the current estate, test whether the estate profile produces transfer tax and show federal headroom, or solve for the number of years of annual-exclusion gifting needed to eliminate the modeled tax within a chosen time limit.

This is an estimate, not legal, tax, or financial advice. The calculator itself flags its New Jersey inheritance schedules, elective-share treatment, and small-estate figures for verification.

How the New Jersey Estate Tax Calculator Works

The calculation starts by adding five asset categories: real property, financial accounts and cash, retirement accounts and annuities, life insurance owned by the decedent, and business interests or other property.

The attorney and executor fee is modeled as the entered percentage of the gross estate after debts, but not below zero. Court costs are then added to that administration amount.

Total modeled deductions include debts, funeral expenses, administration costs, and entered casualty or theft losses. The calculator calls the remaining amount the net estate.

Net Estate=max⁡(Gross Estate−Total Deductions,0)\text{Net Estate}=\max(\text{Gross Estate}-\text{Total Deductions},0)

A spousal bequest reduces the federal taxable estate when the decedent is marked married and the surviving spouse is a U.S. citizen or the non-citizen spouse’s bequest passes to a QDOT. The deduction cannot exceed the modeled net estate. The charitable deduction is then limited to the amount remaining after the marital deduction.

Taxable Estate=max⁡(Net Estate−Allowed Marital Deduction−Charitable Deduction−Gift Reduction,0)\text{Taxable Estate}=\max(\text{Net Estate}-\text{Allowed Marital Deduction}-\text{Charitable Deduction}-\text{Gift Reduction},0)

Earlier taxable gifts are added to the taxable estate to form the federal tax base. The applicable federal exclusion equals the basic exclusion for the selected year plus entered DSUE. The calculator uses basic exclusions of $13,610,000 for 2024, $13,990,000 for 2025, and $15,000,000 for 2026.

Federal Base=Taxable Estate+Earlier Taxable Gifts\text{Federal Base}=\text{Taxable Estate}+\text{Earlier Taxable Gifts}
Applicable Federal Exclusion=Basic Exclusion+DSUE\text{Applicable Federal Exclusion}=\text{Basic Exclusion}+\text{DSUE}

If the federal base exceeds that exclusion, the calculator applies its progressive 18% through 40% federal schedule to both amounts. Federal estate tax is the schedule tax on the federal base minus the schedule tax on the applicable exclusion. Otherwise, federal estate tax is $0.

Federal Estate Tax=max⁡(T(Federal Base)−T(Applicable Exclusion),0)\text{Federal Estate Tax}=\max\left(T(\text{Federal Base})-T(\text{Applicable Exclusion}),0\right)

New Jersey inheritance tax is calculated separately. For Class C, the calculator first subtracts a $25,000 exemption, floors the result at zero, and applies its graduated 11% through 16% schedule. Class D has no modeled exemption and uses 15% on the first $700,000 and 16% above $700,000. The calculator treats Class A and Class E transfers as exempt.

NJ Inheritance Tax=TC(max⁡(Class C Amount−25,000,0))+TD(Class D Amount)\text{NJ Inheritance Tax}=T_C\left(\max(\text{Class C Amount}-25{,}000,0)\right)+T_D(\text{Class D Amount})

GST tax equals 40% of direct skips remaining after the entered GST exemption. Finally, total transfer tax adds federal estate tax, New Jersey inheritance tax, New Jersey estate tax of $0, and GST tax.

GST Tax=0.40×max⁡(Direct Skips−GST Exemption,0)\text{GST Tax}=0.40\times\max(\text{Direct Skips}-\text{GST Exemption},0)

Worked Example

Consider the calculator’s 2025 example with a $20,000,000 gross estate, $500,000 of debts, $20,000 of funeral expenses, a 2% attorney and executor fee, $400 of court costs, and a $1,000,000 Class D transfer. There are no marital or charitable deductions in this example.

The administration cost is $390,400. Total deductions are $910,400, leaving a modeled net and taxable estate of $19,089,600. Against the calculator’s $13,990,000 federal exclusion for 2025, its progressive federal schedule produces $2,039,840 of federal estate tax.

The $1,000,000 Class D amount produces $153,000 of New Jersey inheritance tax: 15% of the first $700,000 is $105,000, and 16% of the remaining $300,000 is $48,000. With no GST tax, the calculator’s total is $2,192,840.

How to Use the New Jersey Estate Tax Calculator

  1. Select whether you want to calculate tax on the estate, test a larger-estate profile, or solve for years of gifting.
  2. Choose the year of death: 2024, 2025, or 2026.
  3. Select the New Jersey county of domicile. The calculator uses this to display the Surrogate’s Court venue.
  4. Enter the estate’s real property, financial accounts, retirement assets, owned life insurance, and business or other property.
  5. Enter debts, funeral expenses, the attorney and executor fee percentage, court costs, and casualty or theft losses.
  6. Enter marital and charitable bequests and, when applicable, amounts passing to Class C and Class D beneficiaries. Set the surviving-spouse and QDOT options as appropriate.
  7. Enter earlier taxable gifts, DSUE, direct skips, and the GST exemption allocated.
  8. For gifting calculations, enter the number of donees, annual gift per donee, unrealized gain, heirs’ selected capital-gains rate, NIIT option, and maximum years to test.
  9. Check the required acknowledgment and select the calculation button to view the results.

Dollar results are displayed as U.S. currency rounded to the nearest whole dollar. Effective rates are shown as percentages. The detailed results break out the federal tax, Class C and Class D inheritance taxes, GST tax, deductions, taxable estate, exclusion information, filing indicators, and other modeled estate figures.

Understanding the Results and Assumptions

The main estate mode reports total transfer tax due. This total can contain federal estate tax, New Jersey inheritance tax, and GST tax. The New Jersey estate-tax component remains $0 under the calculator’s 2024 through 2026 model.

Federal Headroom

The calculator measures federal headroom as the applicable federal exclusion minus the federal tax base, with negative results changed to zero. Its displayed tax-free ceiling adds that headroom to the current gross estate. This is a modeled federal measure for the entered profile. New Jersey inheritance tax can still arise from Class C or Class D amounts.

Annual-Exclusion Gifting Mode

Gifting mode limits the modeled gift per donee to the calculator’s annual exclusion: $18,000 for 2024 or $19,000 for 2025 and 2026. It multiplies that amount by the number of donees and years.

Gift Reduction=min⁡(Gift per Donee,Annual Exclusion)×Donees×Years\text{Gift Reduction}=\min(\text{Gift per Donee},\text{Annual Exclusion})\times\text{Donees}\times\text{Years}

The solver searches for the smallest whole number of years that makes total modeled transfer tax zero within the maximum number of years entered. The maximum-years field accepts values from 1 through 200. Because the gifting reduction does not reduce the Class C or Class D amounts entered, their inheritance tax can prevent the solver from reaching zero.

Other Results

For a married decedent, the calculator displays an elective-share estimate equal to one-third of its modeled net estate. It describes this as a proxy for the augmented estate and flags the treatment for verification. It also tests personal property against a $50,000 small-estate limit with a surviving spouse or $20,000 without one, again with the figures flagged for verification.

The calculator treats personal property for this test as financial accounts plus retirement accounts, life insurance, and business or other property. Real property is not included in that particular personal-property total.

Most monetary input fields allow values from $0 to $100,000,000. The attorney and executor fee accepts 0% through 25%, and the number of donees accepts 0 through 200, although gifting mode requires at least one donee. Required selections include the calculation mode, year, county, long-term capital-gains rate, and acknowledgment.

Estate and inheritance taxation can depend on facts beyond this simplified model. Actual filing requirements, deductions, beneficiary treatment, property interests, gift treatment, and other tax or probate consequences may differ. Verify the calculator’s flagged New Jersey figures and use qualified professional advice for an actual estate.

Estate Tax Calculators for All 50 U.S. States

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

Frequently Asked Questions

Does this calculator charge a New Jersey estate tax?

No. The calculator sets New Jersey estate tax to $0 for all three supported death years, 2024 through 2026. Its New Jersey tax calculation instead focuses on inheritance tax for entered Class C and Class D beneficiary amounts.

How does the calculator handle New Jersey inheritance tax?

It treats Class A and Class E transfers as exempt. For the aggregate Class C amount, it subtracts $25,000 before applying rates from 11% through 16%. For Class D, it applies 15% through $700,000 and 16% above that amount. The calculator labels these inheritance schedules as figures to verify.

What federal estate tax exclusions does the calculator use?

The code uses $13,610,000 for a 2024 death, $13,990,000 for 2025, and $15,000,000 for 2026. Entered DSUE from a predeceased spouse is added to the selected basic exclusion when the calculator determines the applicable federal exclusion.

How does a spousal bequest affect the calculation?

A spousal bequest can reduce the modeled federal taxable estate if the decedent is marked married and the spouse is a U.S. citizen or a QDOT is selected. The allowed deduction is capped at the net estate. Without those conditions, the calculator does not apply the entered spousal bequest as a marital deduction.

How does the gifting solver work?

The solver reduces the modeled taxable estate by annual-exclusion gifts and searches for the first whole number of years that makes total transfer tax zero. It stops at the maximum years you enter. If the tax cannot reach zero within that period, the result reports that more years would be needed.

Does annual-exclusion gifting reduce the Class C or Class D inheritance tax in this calculator?

No. The gifting reduction lowers the modeled federal taxable estate, but the entered Class C and Class D amounts remain unchanged. As a result, New Jersey inheritance tax on those entered amounts can remain even after the modeled federal estate tax reaches zero.

How is the effective transfer tax rate calculated?

The calculator divides total modeled transfer tax by the gross estate. If the gross estate is zero, it uses a 0% effective rate. The displayed effective percentage therefore reflects the combined modeled transfer taxes relative to gross estate, rather than only the federal estate-tax rate.

Effective Rate=Total Transfer TaxGross Estate×100%\text{Effective Rate}=\frac{\text{Total Transfer Tax}}{\text{Gross Estate}}\times100\%

Maine Estate Tax Calculator

Missouri Estate Tax Calculator

Related Calculators