New Jersey, long home to some of the country’s highest property tax bills, is also subject to some of the most aggressive estate and inheritance taxes. But a bill introduced in the state legislature looks to repeal the Garden State’s inheritance tax and lift the estate tax exemption to the federal level.
One of only two states in the nation that taxes both estates, which include real estate holdings, cash, investments life insurance and other assets, as well as inheritances, the Garden State begins dipping into the value of a person’s estate at the $675,000 mark. The lowest bar for paying estate taxes in the U.S., the number also falls well below the $5.34 million threshold for federal taxes.
This year, nearly $760 million in estate and inheritance taxes will be generated in New Jersey, out of a total state budget of $32.5 billion that Governor Chris Christie signed for the current fiscal year, according to state Department of Treasury data cited by NorthJersey.com.
The tax rates on inheritances can go as high as 16 percent in New Jersey. Other states, including New York, are now looking to refashion tax policy in an effort to keep residents from departing to live in states that do not levy such fees. [NorthJersey.com] – Julie Strickland