New Jersey Exit Tax Calculator

The Exit Tax Is a Deposit, Not a Penalty

Despite the name, New Jersey's exit tax is not a separate tax for leaving. It's an estimated income tax payment collected at closing from sellers who are moving out of state, so the state doesn't lose track of the tax on your sale gain after you're gone. The closing agent withholds the greater of 10.75% of your estimated gain or 2% of the total sale price, files it with form GIT/REP-1, and the amount is credited to you like any other estimated payment. If it's more than you actually owe, you get the difference back on your NJ return, or sooner by filing refund form A-3128.

Why Residents Pay Nothing at Closing

If you're still a New Jersey resident when you sell, you certify residency on form GIT/REP-3 and no estimated payment is withheld at all. Any tax on the gain is settled on your regular NJ-1040. That makes timing worth thinking about. Selling before you change your residency, rather than after, can keep thousands of dollars out of withholding entirely. Sellers whose entire gain is covered by the federal home sale exclusion of $250,000 single or $500,000 married can also certify exempt on the same form.

The 2% Minimum Catches Sellers With No Gain

The formula's floor means the state withholds 2% of the sale price even when you sell at a loss. On a $500,000 sale with no profit at all, that's $10,000 held at the closing table until you file for it back. It's the single most common exit tax surprise, and it's exactly the situation the refund form exists for. For the deeper story, our guide explaining the NJ exit tax walks through the forms and the refund timeline, and the net proceeds calculator shows your full closing picture.