NJ Executor Guide
How to Pay NJ Inheritance Tax
The tax is due 8 months after death — and the two facts executors learn too late are that a filing extension doesn’t move that date, and that you can pay before the return is ready.
The extension trap: filing and paying are two different clocks
Form IT-EXT gives an estate more time to file the IT-R return. It gives no extra time to pay. The tax is due 8 months after death regardless, and unpaid tax accrues interest at 10% per year from that date — silently, whether or not anyone told you.
In a New Jersey estate I administered, this was the single most consequential thing nobody explained up front. The estate wasn’t ready to file at 8 months — few are — but the tax could still be paid. That’s what saved the interest.
You can pay before you file: the payment on account
New Jersey accepts an estimated payment — a payment on account — at any time. Two ways:
- By mail: send Form IT-EP (Payment on Account voucher) with a check or money order.
- Online: pay through the Division of Taxation’s payment system without any voucher.
Interest stops accruing on whatever you’ve paid. If the final assessment comes in lower than what you paid, the overpayment is refunded after review. If you genuinely don’t know the number yet, a reasonable estimate beats waiting — the rates and classes guide can get you close, and a CPA can get you closer.
Paying online
- E-check: no usage fee — usually the right choice for an estate.
- Credit card (Visa, American Express, MasterCard, Discover): accepted, but a usage fee is added to the payment.
- Don’t mail the voucher when you pay online.
- Practical tip from experience: the online option may need the estate established in the Division’s system first. One call to the Inheritance and Estate Tax Service Center at 609-292-5033 sets it up.
Paying by mail
| Detail | What to do |
|---|---|
| Payable to | “NJ Inheritance and Estate Tax” |
| On the check | The decedent’s name and Social Security number |
| With the payment | Form IT-EP if paying before the return; the IT-R’s own voucher only when filing the return |
| USPS address | NJ Division of Taxation, Transfer Inheritance Tax, PO Box 249, Trenton, NJ 08695 |
| UPS / FedEx address | NJ Division of Taxation, Transfer Inheritance Tax, PO Box 249, 3 John Fitch Way, 6th Floor, Trenton, NJ 08611 |
Certified mail with a return receipt costs a few dollars and gives the estate a dated record of the payment — cheap insurance for the file.
Why the 8-month date matters beyond interest
Unpaid inheritance tax is also what stands between the estate and its tax waivers — the documents that release frozen accounts and let real estate close cleanly. The state issues waivers after the assessment is satisfied, so paying late doesn’t just cost interest; it holds up everything downstream. The 8-month tax date also lands one month before NJ’s 9-month creditor threshold — the two dates are the spine of the NJ timeline.
Get every NJ deadline dated to your estate
The free calculator turns a date of death into your IT-R deadline and the dates around it. The NJ Compliance Kit adds the records system that makes the 8-month filing a one-pass review.
Open the free NJ calculator → See the NJ Compliance KitSee real pages from inside the kit → · Every kit carries a 30-day money-back guarantee — if it isn't the help you needed, email and I'll refund you in full. No forms, no questions.
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Frequently asked questions
When is NJ inheritance tax due?
New Jersey inheritance tax is due 8 months after the date of death. After that, unpaid tax accrues interest at 10% per year. The return (Form IT-R) is due on the same 8-month clock.
Does an extension to file extend the time to pay NJ inheritance tax?
No. Form IT-EXT extends the time to file the return only — the tax itself is still due 8 months after death, and 10% annual interest runs on any unpaid balance from that date. This is one of the most expensive misunderstandings in NJ estate administration.
Can I pay NJ inheritance tax before filing the return?
Yes. New Jersey accepts a payment on account (an estimated payment) at any time — by mail with Form IT-EP, or through the Division of Taxation's online payment system. Paying early stops further interest from accruing on the amount paid, and an overpayment is refunded after the return is reviewed.
How do I pay NJ inheritance tax online?
The Division of Taxation's online payment option accepts e-check or credit card (Visa, American Express, MasterCard, or Discover). A usage fee is added to credit card payments; e-check avoids it. When paying online, you do not mail the payment voucher. In practice, some executors find the estate needs to be set up in the system first — the Inheritance and Estate Tax Service Center (609-292-5033) can establish it.
Who do I make the check payable to for NJ inheritance tax?
Checks are made payable to “NJ Inheritance and Estate Tax,” with the decedent's name and Social Security number written on the check. By USPS, mail to NJ Division of Taxation, Transfer Inheritance Tax, PO Box 249, Trenton, NJ 08695. By private carrier (UPS/FedEx), use PO Box 249, 3 John Fitch Way, 6th Floor, Trenton, NJ 08611. Pre-filing payments by mail go with Form IT-EP.
What happens if I overpay NJ inheritance tax?
Overpayments are refunded after the Division reviews the return and issues its assessment. Refund applications are made in writing and have a limited statutory window, so don't sit on one — confirm the current process and deadline with the Division of Taxation or a CPA.