QUESTION:
Has the New Jersey Estate Tax been eliminated?
ANSWER: For 2017, it has been amended. It is eliminated effective January 1, 2018.
P.L. 2016, Chapter 57, “AN ACT adjusting certain State taxes to support strengthened investments in public and private assets in this State, amending and supplementing various parts of the statutory law pertaining to taxes of this State”, addresses the New Jersey Estate Tax in section 7. The only changes are as follows:
For Decedents dying on or after January 1, 2017, a new tax schedule is applicable:
| On any amount up to $100,000 | 0.0% | On any amount in excess of $500,000 up to $700,000 | $10,000 + 4.0% of the excess over $500,000 |
| On any amount in excess of $100,000, up to $150,000 | 0.8% of the excess over $100,000 | On any amount in excess of $700,000 up to $900,000 | $18,000 + 4.8% of the excess over $700,000 |
| On any amount in excess of $150,000 up to $200,000 | $400 + 1.6% of the excess over $150,000 | On any amount in excess of $900,000 up to $1,100,000 | $27,600 + 5.6% of the excess over $900,000 |
| On any amount in excess of $200,000 up to $300,000 | $1,200 + 2.4% of the excess over $200,000 | On any amount in excess of $1,100,000 up to $1,600,000 | $38,800 + 6.4% of the excess over $1,100,000 |
| On any amount in excess of $300,000 up to $500,000 | $3,600 + 3.2% of the excess over $300,000 | On any amount in excess of $1,600,000 up to $2,100,000 | $70,800 + 7.2% of the excess over $1,600,000 |
(for amounts over $2.1 million, refer to the statute or call for assistance)
For Decedents dying on or after January 1, 2018, the New Jersey Estate Tax will be eliminated.
The New Jersey Transfer Inheritance Tax remains unchanged.
As with Inheritance Taxes, if an escrow is to be held, the assistance of a member of our underwriting staff should be sought in order to determine the proper escrow amount. A completed Estate Debts Questionnaire should be obtained and provided.
As always, feel free to address any questions to a member of our staff.