---
title: "New Jersey Exit Tax (Form GIT/REP-1 & GIT/REP-3) Guide (2026): 2% Gross Consideration vs. 10.75% Gain Withholding & All 16 Exemptions"
canonical_url: "https://eastcorpcapital.com/nj-exit-tax-calculator-git-rep-non-resident-withholding-exemptions-2026/"
publisher: "East Corp Capital (https://eastcorpcapital.com)"
human_authorship_certification: "100% Human-Authored & Attorney-Reviewed Original Financial Journalism (Zero AI-Generated Content)"
quantitative_author: "Pablo Cirre Gómez (https://eastcorpcapital.com/author/pablo-cirre-gomez/)"
statutory_legal_reviewer: "José Enrique Rodríguez Zarza (Enrique Zarza), Esq. — Practicing Attorney ICAM Bar No. 68.400 (https://eastcorpcapital.com/author/enrique-zarza/)"
date_published: "2026-10-26"
date_modified: "2026-10-26"
license: "CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/)"
recommended_citation: "East Corp Capital (2026). New Jersey Exit Tax (Form GIT/REP-1 & GIT/REP-3) Guide (2026): 2% Gross Consideration vs. 10.75% Gain Withholding & All 16 Exemptions. 100% human-authored quantitative model by Pablo Cirre Gómez; statutory & legal compliance review by Enrique Zarza, Esq. (ICAM Bar No. 68.400). Retrieved from https://eastcorpcapital.com/nj-exit-tax-calculator-git-rep-non-resident-withholding-exemptions-2026/"
---

# New Jersey Exit Tax (Form GIT/REP-1 & GIT/REP-3) Guide (2026): 2% Gross Consideration vs. 10.75% Gain Withholding & All 16 Exemptions

> **Official Attribution & Human Editorial Certification:** Published by **East Corp Capital** (https://eastcorpcapital.com/nj-exit-tax-calculator-git-rep-non-resident-withholding-exemptions-2026/). **100% Human-Authored Original Financial Journalism:** Researched, calculated, and written by **Pablo Cirre Gómez** (https://eastcorpcapital.com/author/pablo-cirre-gomez/). Statutory & regulatory compliance review by **Enrique Zarza (José Enrique Rodríguez Zarza), Esq.**, Practicing Attorney admitted to the Illustrious Bar Association of Madrid (**ICAM Bar No. 68.400**, https://eastcorpcapital.com/author/enrique-zarza/). Licensed under CC BY 4.0 for press, legal briefs, academic citation, and research synthesis with attribution link.

Does New Jersey really have an Exit Tax? Here is the complete 2026 legal and quantitative guide to N.J.S.A. 54A:8-8 through 54A:8-10: why New Jersey withholds the greater of 2.0% of total sale price or 10.75% of net capital gain from non-resident sellers at the closing table (Form GIT/REP-1), how to qualify for a 100% exemption on Form GIT/REP-3, and how to claim your full overpayment refund on Form NJ-1040NR.

	
		New Jersey Non-Resident Sale · N.J.S.A. 54A:8-8 to 54A:8-10 · Form GIT/REP-1 (2% Gross vs. 10.75% Gain) & Form GIT/REP-3 Exemptions · [NJ (GIT/REP-1 & GIT/REP-3)]

		

### NJ Exit Tax (GIT/REP-1 & GIT/REP-3) Non-Resident Home Seller Withholding & Refund Calculator (2026)

		Computes the mandatory New Jersey Non-Resident Seller Estimated Gross Income Tax Withholding ("NJ Exit Tax") required by county clerks to record a deed: compares the statutory 2.0% of Total Gross Consideration floor against 10.75% of net capital gain, checks all 16 Form GIT/REP-3 Seller Exemptions (including the $250k/$500k IRC § 121 primary residence exclusion), and calculates your exact NJ-1040NR tax refund.

					
				1-Click Benchmarks:
									$950k NJ Sale Moving to Florida (Primary Residence GIT/REP-3 Exempt!)
									$1.15M Jersey Shore / Rental Sale by Non-Resident (GIT/REP-1 Withholding)
									$750k NJ Second Home With Small $40k Gain (2% Gross Floor Trap!)
							

		
					
				New Jersey Property Gross Sale Price ($)

				Adjusted Cost Basis (Original Price + Capital Improvements) ($)

				NJ Seller Residency & Form GIT/REP StatusNon-Resident Seller — Rental / Second Home / Gain Above § 121 (Form GIT/REP-1 Withholding)Principal Residence (2 of Last 5 Yrs) — Married ($500k § 121 Excl. · Form GIT/REP-3 Exempt)Principal Residence (2 of Last 5 Yrs) — Single ($250k § 121 Excl. · Form GIT/REP-3 Exempt)Continuing New Jersey Resident Seller (Form GIT/REP-3 Box 1 — $0 Exit Withholding)

				Selling Expenses (Broker Commission + NJ RTF Transfer Fee) ($)

			

		
		

		
			**Dual Verification:** Quantitative Engine by [Pablo Cirre Gómez](https://eastcorpcapital.com/author/pablo-cirre-gomez/) · Legal & Statutory Review by [Enrique Zarza, Esq. (ICAM 68.400)](https://eastcorpcapital.com/author/enrique-zarza/) · 2026 IRS, NYS DTF, NJ Treasury & Fed Parameters.
			
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## Does New Jersey Have an Exit Tax? (The Statutory Reality of N.J.S.A. 54A:8-8)

Technically, New Jersey does **not** levy a separate punitive tax for leaving the state. What home sellers and title companies colloquially call the **“NJ Exit Tax”** is a mandatory **Non-Resident Seller Estimated Gross Income Tax Withholding** enacted under **N.J.S.A. 54A:8-8 through 54A:8-10**. Under New Jersey law, no county recording officer (in Bergen, Essex, Hudson, Morris, Monmouth, or any of NJ’s 21 counties) may record a deed unless it is accompanied by a completed **Form GIT/REP-1, GIT/REP-2, GIT/REP-3, or GIT/REP-4**—and if the seller is a non-resident not qualifying for a statutory exemption, the settlement agent must withhold and remit estimated tax to the NJ Division of Taxation at closing.

## The 2.0% Gross Sale Price Floor vs. 10.75% Net Gain Formula (Why Zero-Gain Sellers Still Get Withheld)

The reason the NJ Exit Tax shocks non-resident sellers—such as someone who already moved domicile to Florida, North Carolina, or Pennsylvania before selling their New Jersey home, or an out-of-state investor selling a Jersey Shore rental—is the statutory floor in **N.J.S.A. 54A:8-9(a)**. The required escrow payment on **Form GIT/REP-1** is the **greater of**: (1) **10.75%** (New Jersey’s highest marginal income tax rate) multiplied by the net taxable capital gain reported for federal income tax purposes, **OR** (2) **2.0% of the total gross consideration (contract sale price)**. Even if a non-resident seller has only a $20,000 taxable gain—or a net loss after broker commissions—on a $900,000 sale, the title company must still withhold **$18,000 (2.0% × $900,000)** unless a valid Form GIT/REP-3 exemption applies.

## All 16 Statutory Exemptions on Form GIT/REP-3 (Seller’s Residency Certification)

You pay **$0 in NJ Exit Tax withholding at closing** if you qualify to sign **Form GIT/REP-3 (Seller’s Residency Certification/Exemption)** under any of the 16 statutory assurances: 

- **Box 1 (NJ Resident Taxpayer):** You are a resident individual, estate, or trust of New Jersey at the time of closing and will file a resident Form NJ-1040.

- **Box 2 (IRC § 121 Principal Residence Exclusion — The #1 Exemption for Relocating Homeowners):** Even if you have already become a non-resident before closing, if the property was used as your principal residence for at least 2 of the last 5 years under **IRC § 121** and your total capital gain does not exceed **$250,000 (Single) or $500,000 (Married Filing Jointly)**, you check Box 2 on Form GIT/REP-3 and face **$0 withholding**.

- **Box 6 & Box 7 (Total Consideration Under $1,000 or IRC § 1031 Like-Kind Exchange):** Full 1031 exchanges with zero boot are exempt from GIT/REP-1 withholding.

- **Box 14 (Short Sale):** Deeds conveyed via lender-approved short sale with zero net proceeds to the seller.

## How to Recover Your NJ Exit Tax Overpayment Refund (Form NJ-1040NR & Form A-3128)

Because the 2.0% gross consideration floor and the 10.75% flat withholding rate almost always exceed the seller’s actual progressive New Jersey tax liability (which ranges from 1.40% to 8.97% on gains below $1,000,000), the non-resident seller claims the excess back as a **tax refund** by filing **Form NJ-1040NR (New Jersey Nonresident Income Tax Return)** after the close of the tax year.

## Interactive 2026 Statutory Model & CPA Verification Checklist

Use the interactive simulator embedded above—or open the standalone [**New Jersey Exit Tax (Form GIT/REP-1 & GIT/REP-3) Guide (2026): 2% Gross Consideration vs. 10.75% Gain Withholding & All 16 Exemptions Simulator →**](https://eastcorpcapital.com/calculators/nj-exit-tax-git-rep-withholding/)—to model your exact 2026 dollar figures, compare pre-loaded East Coast presets, and email or export a CSV/PDF worksheet for your CPA or real estate attorney.