Will you owe any state or federal income tax on the remaining inheritance after paying the NJ inheritance tax?

Answer 1

If you inherit something like a tax-sheltered account, you may owe income taxes when you make withdrawals from the account. Examples are a traditional IRA or a 401k.

If you inherit property that has gone up in value since the date of death, you may have to pay tax on the increase in value when you sell it.

If you inherit US Savings Bonds on which the previous owner has not been paying taxes annually, you may owe income tax on the interest when you cash them in.

If you inherit corporate bonds, you may have to pay income tax on any interest payments after the date of death.

But, in general, you do not owe income taxes on an inheritance.