The New Jersey exit tax.
Not a tax on leaving. It is New Jersey income tax collected at closing when a nonresident sells New Jersey real estate, and from July 10, 2025 the seller also pays the mansion fee.
In short, current to October 2026
- A seller who is no longer a New Jersey resident at closing prepays the greater of 10.75% of the gain or 2% of the sale price, on Form GIT/REP-1, before the county will record the deed (N.J.S.A. 54A:8-8 to 8-10).
- It is an estimate, not the bill. The seller files a New Jersey nonresident return (NJ-1040NR) for the year of sale and is refunded anything paid above the tax actually owed at the graduated rates of 1.4% to 10.75%.
- A seller still resident at closing files GIT/REP-3 and pays nothing up front, and the same form exempts the sale of a home used exclusively as a principal residence under federal section 121.
- Since July 10, 2025 the seller also pays the mansion fee, graduated on the whole price: 1% above $1,000,000, 2% above $2,000,000, 2.5% above $2,500,000, 3% above $3,000,000 and 3.5% above $3,500,000 (P.L. 2025, c.69).
- On a $3,000,000 sale with a $1,000,000 gain, a nonresident hands over $107,500 of prepaid income tax and a $75,000 fee at closing, $182,500 in all.
- Current to October 2026. Not tax advice. Confirm a sale or a move with counsel before relying on any figure.
Each address on this page was last checked against its official sources between and . The sources for each are named on its page.
Source: the Patrician.ch board, an original ranking of 100 residence addresses across 47 countries and territories. Tax rates, thresholds and routes are sourced. Cost, safety, schools, sun and beauty are Patrician.ch editorial indices. Figures current to October 2026. Updated . Cite as: Patrician.ch, New Jersey exit tax 2026: what a seller who moved away pays, patrician.ch/answers/new-jersey-exit-tax/, October 2026.
