Calculating the New Jersey Estate Death Tax

By Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a Freehold, NJ Estate Administration and Probate Attorney

 In New Jersey, the estate tax exemption is $675,000.  That means if you have a $1,000,000 estate, the New Jersey estate tax will be based on $325,000 of Estate value.  But how does that translate into actual dollars?

Calculating the New Jersey estate tax is a common area of confusion.  The tax is imposed on estates of over $675,000.  Amounts passing to a surviving spouse are exempt from the tax.  As for the rates, while the tax rates imposed in New Jersey are lower than the Federal estate tax rates, they can still be quite significant.  The rates can start as high as 37% on the first $52,174 over the exemption, and after that, the rates range from 4.8% to 16%.

The taxable value of the estate takes into account any deductions you may receive.  You can go to http://www.state.nj.us/treasury/taxation/pdf/
other_forms/inheritance/itestate.pdf
to find a form with which you may calculate the estate tax.  Once the taxable value is calculated, use the Table on Page 10 to calculate the estate tax.  So using the worksheet, a $1 million estate would have a $33,200 estate tax.  A $1.5 million estate would have a $64,000 estate tax.  Finally, a $10 million estate would have a $1,067,600 estate tax.

To discuss your NJ Estate Administration and Probate matter, please contact Fredrick P. Niemann, Esq. toll-free at (855) 376-5291 or email him at fniemann@hnlawfirm.com.  Please ask us about our video conferencing consultations if you are unable to come to our office.