Use this interactive New Jersey Exit Tax Calculator (2026): Form GIT/REP-1 & Home Sale Withholding to model your exact 2026 tax, mortgage, or closing cost position across New York City, New York State, New Jersey, Connecticut, Massachusetts, Pennsylvania, and Florida. Click any 1-Click Benchmark pill inside the simulator to load verified East Coast scenarios, or click Copy Custom Scenario Link to share a deep-linked calculation.
New Jersey Exit Tax Calculator (Selling a House in NJ)
Computes the mandatory NJ non-resident seller estimated tax withholding at closing: the greater of 2% of gross consideration or 8.97%–10.75% of net capital gain after IRC § 121 exclusion.
For a 2,000-word line-by-line legal breakdown, worked household examples, and filing instructions, read our companion pillar report: Complete 2026 Statutory Guide & Case Studies →
2026 Statutory Parameters, Rates & Legal Citations
| Statutory Component | 2026 Rate / Limit | Application & Thresholds | Primary Authority |
|---|---|---|---|
| Statutory Minimum Floor | 2.00% of Gross Price | Mandatory minimum escrow for non-resident sellers | N.J.S.A. 54A:8-9 |
| Net Gain Withholding Rate | 8.97% – 10.75% | Applied to taxable gain after IRC § 121 exclusion | Form GIT/REP-1 |
| NJ Resident Exemption | $0 Withholding | Sellers remaining domiciled in NJ or qualifying under § 121 | Form GIT/REP-3 |
| Non-Resident Refund Claim | 100% of Excess Escrow | Claimed on non-resident return after year-end | Form NJ-1040NR |
Frequently Asked Questions & Statutory Rules (2026)
Is the New Jersey Exit Tax an extra tax on selling my house?
No. The NJ "Exit Tax" is an estimated income tax prepayment collected at the closing table from sellers moving out of New Jersey. If your actual NJ capital gains tax is lower than the 2% withholding floor, NJ refunds the difference when you file Form NJ-1040NR.
Why did the title company withhold 2% when my capital gain is $0 after the $500,000 exclusion?
Under N.J.S.A. 54A:8-9, non-resident sellers who do not qualify for a GIT/REP-3 exemption box must escrow the GREATER of 2% of the gross sale price or 8.97%–10.75% of the net taxable gain—even when the taxable gain is zero.
How do I avoid the 2% NJ Exit Tax withholding legally at closing?
If the property was your principal residence for 2 of the last 5 years and your gain is fully excluded under IRC § 121 ($250k Single / $500k Married), your real estate attorney can file Form GIT/REP-3 Box 2 at closing to reduce withholding to $0.
How long does it take to get a NJ Exit Tax refund?
Once you file your New Jersey Non-Resident Income Tax Return (Form NJ-1040NR) the following spring, the NJ Division of Taxation typically processes the excess withholding refund within 6 to 10 weeks.