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Selling Your Home in New Jersey? Get Ready to Pay Exit Tax

By
Real Estate Agent with RE/MAX Premier

Only in New Jersey?

Are you are thinking of selling your home in New Jersey and relocating to another state get ready to pay an Exit Tax. How closely monitored is this law is unknown, but it has been on the books since Governor McGreevey enacted when in office.The tax payment is determined by multiplying the gain on the sale by the top NJ tax rate of 8.97%. The payment cannot be less than 2% of gross proceeds from the sale.

In 2007 the state Division of Taxation "amended" their position that, in order to utilize the Resident form, the seller MUST be moving to a New Jersey address as of the date of deed transfer, or they must use the Non-Resident form, which will require the Seller to pay the minimum 2% of the deed consideration directly to the state.

So if you are thingking of leaving our fair state of New Jersey after selling your home, double check with your real estate attorney and/or accountant to see what options are available to you.

 

 

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Comments(4)

Simon Mills
Mills Realty - Toluca Lake, CA

That is awful.  Sounds like a good excuse to have a mailbox address!

Jan 20, 2011 11:10 AM
Maria Couto
RE/MAX Premier - Berkeley Heights, NJ
Realtor with "Results That "MOVE" You'

Sounds like it Simon. I think I'll just stick around Jersey. Death, Taxes and the Jersey Shore-What Else could you want.

Jan 20, 2011 12:46 PM
Robert Hammerstein
Christie's International Real Estate - Hillsdale, NJ
Bergen County NJ Real Estate

Maria - Ahh yes the McGreevey exit tax... definitely must be considered when leaving our state. But who would want to leave the tropics of NJ anyway? Good post and keep warm....

Jan 24, 2011 04:45 AM
Tim Peterson
Wisconsin Realtor Safety and Concealed Carry Classes - Madison, WI
Realtor Safety Training Classes

Wow that is a little scary-taxes on anything now

Jan 26, 2011 03:12 PM