Answers · current to September 2026

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 September 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 a sale whose whole gain is excluded as a principal residence.
  • 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 September 2026. Not tax advice. Confirm a sale or a move with counsel before relying on any figure.

Source: the Patrician.ch board, an original ranking of 100 residence addresses across 48 countries and territories. Tax rates, thresholds and routes are sourced. Cost, safety, schools, sun and beauty are Patrician.ch editorial indices. Figures current to September 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/, September 2026.

At closing

What a $3,000,000 sale hands over.

Seller at closingIncome tax prepaidMansion feeTotal
Nonresident, $1,000,000 gain$107,500$75,000$182,500
Nonresident, no gain$60,000$75,000$135,000
Still resident$0, gain taxed on the NJ-1040$75,000$75,000

Sources: N.J.S.A. 54A:8-8 to 8-10, P.L. 2025, c.69. The prepayment is credited on the NJ-1040NR. The realty transfer fee is separate and not shown.

Where a New Jersey high earner moves.

The American addresses on the board with no state income tax, on $1,000,000 of income.

01
Naples 🇺🇸 United Stateseffective on $1M, federal only, 24% on gains
33%
02
Bal Harbour 🇺🇸 United Stateseffective on $1M, federal only, 24% on gains
33%
03
Boca Raton 🇺🇸 United Stateseffective on $1M, federal only, 24% on gains
33%
04
Palm Beach 🇺🇸 United Stateseffective on $1M, federal only, 24% on gains
33%
05
Miami 🇺🇸 United Stateseffective on $1M, federal only, 24% on gains
33%
06
Austin 🇺🇸 United Stateseffective on $1M, federal only, 24% on gains
33%

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Questions

The short answers.

What is the New Jersey exit tax?

A prepayment of New Jersey income tax at closing when a nonresident sells New Jersey real estate: the greater of 10.75% of the gain or 2% of the price.

It is not a tax on moving out and it is reconciled on the nonresident return for the year of sale.

How much is the exit tax in New Jersey?

The greater of 10.75% of the gain or 2% of the sale price.

On a $3,000,000 sale with a $1,000,000 gain that is $107,500. With no gain it is still $60,000, refunded on the NJ-1040NR.

How do I avoid the New Jersey exit tax?

Sell while still a New Jersey resident, or qualify for an exemption on GIT/REP-3, the excluded gain on a principal residence being the common one.

Either way the underlying income tax on a taxable gain is still owed.

Who pays the New Jersey mansion tax now?

The seller, on deeds recorded from July 10, 2025, at 1% to 3.5% of the whole price above $1,000,000.

On a $3,000,000 sale it is $75,000.

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The general case, ranked: Where should high earners live in 2026 · Best country to live in if you are rich · Best countries for high earners after tax · Europe · United States · Americans moving abroad · Tax calculator · Keep Index 2026

Tax figures use a simplified marginal model with indicative 2026 brackets for a non-US single filer, ignore social contributions, most deductions, wealth taxes, and treaties, and are not advice. Residence rules change often. Verify before acting.

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