New Jersey Inheritance Tax Guide
Last updated: 18 Oct 2025 • Author: Alexander Foelsche CPA (US), WP (DE), RE (CH)
New Jersey Inheritance Tax & Probate — Complete Guide
What executors and families need to know about New Jersey Transfer Inheritance Tax: beneficiary classes (Class A/C/D), NJ-situs rules for real/tangible property, 8-month deadline, waivers (L-8/L-9), QTIP/remainder issues, and practical filing steps—plus tools and deep-dive subpages.
New Jersey Probate & Filing Basics
Courts & returns
Inheritance tax is administered by the NJ Division of Taxation (separate from probate). Residents file IT-R; nonresidents file IT-NR for NJ-situs assets.
Waivers (L-8 / L-9)
Certain Class A assets can be released via L-8 (banks/securities) or L-9 (real property). Otherwise, the Division issues formal tax waivers after review/payment.
Transfer Inheritance Tax — At a Glance
Official Pages, Forms & Where to File/Pay
- Returns: IT-R (resident) and IT-NR (nonresident), with beneficiary class schedules and valuation exhibits.
- Waivers: L-8 (banks/securities) and L-9 (real property) for eligible Class A cases; otherwise Division-issued waivers.
- Payment & contact: New Jersey Division of Taxation (inheritance & estate tax). Keep proof of payment and issued waivers for title and audit files.
Residents vs. Nonresidents
| Topic | Residents | Nonresidents |
|---|---|---|
| Scope | Tax based on beneficiary class (A exempt; C/D taxable). | Only NJ-situs real/tangibles and certain at-death transfers. |
| Key tasks | Class mapping; appraisals; L-8/L-9 eligibility check; obtain waivers. | Prove situs and value; file IT-NR; obtain and record waivers. |
| Closings | Coordinate waiver timing (bank/brokerage and real estate). | Record waivers with county clerk for real property; institutions require waivers to release assets. |
Planning Ideas
- Beneficiary class mapping: steer NJ-situs assets toward Class A or charity where consistent with goals; fund C/D with non-NJ intangibles.
- Situs management: document where tangibles are stored/garaged; avoid NJ business-situs facts for intangibles/entity interests.
- Trust design: review QTIP and remainder designations; consider lifetime planning to mitigate full-value inclusion at death.
Tools & Subpages
Calculator
Estimate tax per beneficiary class and generate a worksheet for IT-R/IT-NR schedules.
Forms & Deadlines
Return types, 8-month rule, interest, payment, waivers, and checklists.
Nonresident Guide
Who must file, what counts as NJ-situs, waivers, examples, and filing steps.
Case Notes
Authorities on remainders/QTIP, valuation of claims, domicile, and stepchildren.
FAQs
Is there still a New Jersey estate tax?
No. The estate tax is repealed for deaths after 2017. The Transfer Inheritance Tax remains.
Who is exempt?
Class A (spouse/DP, parents/grandparents, lineal descendants, and stepchildren) are exempt. Classes C/D are taxable at graduated rates.
When is the return due?
8 months after death; interest accrues on unpaid tax thereafter.
Do I need a waiver to sell or transfer assets?
Often yes. Use L-8/L-9 for eligible Class A situations; otherwise wait for Division waivers after filing/payment.
Need help filing or planning?
We assist with NJ class mapping, IT-R/IT-NR preparation, valuations, waiver strategy, and QTIP/remainder analysis.