What is the inheritance tax rate in New Jersey?

The inheritance tax rate in New Jersey varies depending on the relationship between the deceased and the beneficiary. As of 2021, the tax rates range from 0% to 16%. Spouses, civil union partners, domestic partners, lineal ancestors/descendants, stepchildren/step-grandchildren, and charities, are exempt from the inheritance tax. However, siblings and children-in-law are subject to a 11-16% tax rate for inheritances over $25,000. The tax rate for other beneficiaries, including nieces, nephews, friends, and non-lineal descendants, is 15-16% for inheritances surpassing $500. The New Jersey Division of Taxation considers the fair market value of the property received to assess the tax due. It is essential to note that estate taxes are different from inheritance taxes, and a separate set of rules applies to them in New Jersey.