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JB

Bill

S 985

Exempts transfers of residential real property between family members from inheritance tax.

2026-2027 Regular Session Introduced by Jon Bramnick

New Jersey bill exempts residential property transfers between family members from state inheritance tax, reducing estate taxes but potentially decreasing government revenue.

Introduced in the Senate, Referred to Senate Budget and Appropriations Committee
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Bill Summary · S 985

Legislative bill overview

S 985 would exempt transfers of residential real property between family members from New Jersey's inheritance tax. The bill applies to direct transfers such as parent-to-child, grandparent-to-grandchild, and spouse-to-spouse transactions involving primary residences or investment properties.

Why is this important

New Jersey has one of the highest inheritance tax rates in the nation, currently reaching 16% on certain transfers. This exemption could significantly reduce the tax burden on families transferring homes, making intergenerational wealth transfer more affordable but potentially reducing state tax revenue used for public services.

Potential points of contention

  • Revenue impact: The state may lose substantial inheritance tax revenue, requiring cuts elsewhere or alternative funding sources
  • Scope definition: "Family members" and "residential property" require precise legal definition to prevent tax avoidance schemes or unintended loopholes
  • Equity concerns: The exemption disproportionately benefits wealthy families with valuable properties while providing no benefit to renters or those without real estate assets
  • Administrative complexity: Implementation may create disputes over property classifications and family relationship verification

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

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