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Bill

S 1867

Eliminates transfer inheritance taxes on brothers and sisters of a decedent.

2026-2027 Regular Session Introduced by Doug Steinhardt and 1 co-sponsor

S 1867 eliminates New Jersey's 11-16% inheritance tax on sibling inheritances, potentially reducing state revenue while easing family wealth transfers.

Introduced in the Senate, Referred to Senate Budget and Appropriations Committee
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Bill Summary · S 1867

Legislative bill overview

S 1867 would eliminate New Jersey's transfer inheritance tax on property inherited by siblings of a deceased person. Currently, New Jersey imposes a 11-16% inheritance tax on transfers to brothers and sisters, though spouses and children are exempt. This bill would extend the same exemption currently given to immediate family to include siblings.

Why is this important

Inheritance taxes significantly affect how families transfer wealth across generations. New Jersey is one of only six states with an inheritance tax, and sibling inheritances can result in substantial tax bills—potentially tens or hundreds of thousands of dollars depending on the estate size. This change would reduce administrative burden and financial strain for families inheriting from siblings while affecting state revenue.

Potential points of contention

  • State revenue impact: Eliminating this tax category would reduce New Jersey's general fund revenue; the fiscal impact depends on how frequently siblings inherit and the size of those estates
  • Equity concerns: Critics may argue that exempting sibling inheritances while maintaining taxes on more distant relatives creates inconsistent policy, or conversely, that removing barriers to family wealth transfer concentrates wealth
  • Precedent for further exemptions: Passing this could create political pressure to eliminate other inheritance tax categories, further eroding this revenue source

Compiled from official sources — confirm details with the bill’s official record.

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