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Bill > A2814

NJ A2814

NJ A2814
Eliminates the New Jersey Transfer Inheritance Tax and repeals parts of chapters 33 through 37 of Title 54 of Revised Statutes.

summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill repeals the Transfer Inheritance Tax for transfers of estate for decedents dying on or after July 1, 2015. Currently, New Jersey imposes a Transfer Inheritance Tax on beneficiaries for the receipt of assets from a New Jersey resident decedent and certain New Jersey assets of nonresident decedents, as determined by the value of the assets transferred and the beneficiary's relationship to the decedent. The Transfer Inheritance Tax is one of the State's oldest taxes, originating in 1892. The tax is imposed on the transfer of all personal and real property in the estates of New Jersey resident decedents and of all tangible and real property located in New Jersey in the estates of nonresident decedents. The tax was extensively revised in 1985 to exempt from taxation transfers to spouses, ancestors and descendants of the decedent. But "lateral" transfers, bequests to brothers and sisters of the decedent or their children, and to nonrelatives are taxed at rates of up to 16 percent. This bill would eliminate all remaining taxable "classes" of beneficiaries and eliminate New Jersey's distinction as being one of only six states to impose an inheritance tax, and of being one of only two states, including Maryland, to impose both an inheritance tax and an estate tax.

AI Summary

This bill eliminates New Jersey's Transfer Inheritance Tax for estates of individuals who die on or after July 1, 2015, meaning beneficiaries will no longer have to pay this tax on assets they receive from a deceased New Jersey resident or on certain New Jersey assets of non-residents. The Transfer Inheritance Tax, which originated in 1892, was previously levied based on the value of the inherited assets and the beneficiary's relationship to the deceased, with exemptions for spouses, ancestors, and descendants, but taxes on transfers to siblings, their children, and unrelated individuals at rates up to 16 percent. By repealing various sections of existing law related to this tax, this bill aims to remove all remaining taxable categories of beneficiaries and distinguish New Jersey from the few other states that still impose an inheritance tax, especially since it is also one of only two states, alongside Maryland, that levies both an inheritance tax and an estate tax. However, the bill specifies that this repeal does not affect any taxes, interest, or penalties that have already accrued or may accrue for deaths occurring before July 1, 2015, and the state retains its authority to audit and collect any taxes due under the old laws for those prior periods.

Committee Categories

Budget and Finance

Sponsors (4)

Last Action

Introduced, Referred to Assembly Budget Committee (on 01/13/2026)
(2 Companion Bills)

bill text

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Document Type Source Location
State Bill Page https://www.njleg.state.nj.us/bill-search/2026/A2814
BillText https://pub.njleg.gov/Bills/2026/A3000/2814_I1.HTM
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