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Free Tax Tool · Updated for 2026
Estimate your NJ exit tax withholding (greater of 10.75% of gain or 2% of sale price), actual tax liability on graduated brackets, refund via Form A-3128, and which GIT/REP form you need. Includes the new seller-paid Mansion Tax rates effective July 2025 and full Section 121 exclusion logic.
Enter your property sale details below. All calculations run in your browser.
The total consideration stated in the deed.
Additions, renovations, new systems (not repairs). These increase your basis.
Lived in the home 2+ of the last 5 years?
The IRC Section 121 USE test. Required for the exclusion ($250K single / $500K MFJ).
Owned the home 2+ of the last 5 years?
The IRC Section 121 OWNERSHIP test. Ownership and use are tested separately - both must be met.
Used the home-sale exclusion on another home in the last 2 years?
Section 121(b)(3) allows the exclusion only once every 2 years. If yes, this sale does not qualify.
Used only for net proceeds calculation, not for tax computation.
Auto-calculated at 6% of sale price. Override below if you know the exact amount.
Using estimate: $39,000
Are you staying in New Jersey?
NJ residents file GIT/REP-3 and owe nothing at closing.
| Detail | Amount |
|---|---|
| Sale price | $650,000 |
| Original purchase price | $350,000 |
| Selling costs (6%) | $39,000 |
| Gross gain | $261,000 |
| Section 121 exclusion (single, $250K) | $250,000 |
| Taxable gain | $11,000 |
| Option A: 2% of sale price | $13,000 |
| Option B: 10.75% of taxable gain | $1,183 |
| Recording-time payment with valid GIT/REP-3 Box 2 | $0 |
| Illustrative NJ tax on the $11,000 excess in isolation | ~$140 |
| Post-recording NJ-1040-ES payment | Fact-dependent |
This example shows a single filer selling a primary residence for $650,000 with a $350,000 basis. The $261,000 gross gain is mostly covered by the $250,000 Section 121 exclusion, leaving $11,000 taxable. Current GIT/REP-3 (8-25) instructions expressly permit a qualifying principal-residence seller to check Box 2 despite that taxable excess, so no additional GIT/REP-1 or estimated payment is due at recording. The $13,000 and $1,183 rows show the general GIT/REP-1 benchmarks that would apply absent an assurance; they are not collected in this Box 2 example. The seller reports the $11,000 taxable excess on the applicable NJ return and may make a fact-specific NJ-1040-ES estimated payment after recording. Use the contact form for your exact numbers.
The Graduated Percent Fee applies to sales over $1,000,000 for residential, commercial, and cooperative properties. Effective July 10, 2025, the fee shifted from buyer to seller. These are cliff rates applied to the entire sale price, not marginal rates.
| Sale Price | Rate | Example Fee |
|---|---|---|
| $1,000,001 to $2,000,000 | 1% | $15,000 on a $1.5M sale |
| $2,000,001 to $2,500,000 | 2% | $45,000 on a $2.25M sale |
| $2,500,001 to $3,000,000 | 2.5% | $68,750 on a $2.75M sale |
| $3,000,001 to $3,500,000 | 3% | $97,500 on a $3.25M sale |
| Over $3,500,000 | 3.5% | $175,000 on a $5M sale |
N.J.S.A. 46:15-7.2 as amended by P.L. 2025, c.69 (S4666/A5804), signed June 30, 2025. Applies to Class 2 (residential), Class 3A (farm with residential structures), Class 4A (commercial), and Class 4C (cooperatives). Does not apply to vacant land, industrial property, or apartments with 5+ units.
The NJ "exit tax" is an estimated Gross Income Tax prepayment required under N.J.S.A. 54A:8-8 through 54A:8-10 when a nonresident individual, estate, or trust sells New Jersey real property. Enacted by P.L. 2004, c.55, this mechanism ensures NJ captures tax on property gains from sellers who leave the state and might never file a NJ return.
The withholding equals the greater of 10.75% of the estimated gain (using the highest GIT rate under N.J.S.A. 54A:2-1) or 2% of the total consideration stated in the deed. This is not a choice between two options. The 2% is a statutory minimum floor. Even sellers with no gain must pay the 2% minimum and seek a refund afterward, unless they qualify for an exemption or obtain a GIT/REP-4 waiver.
The 10.75% withholding rate is the highest marginal bracket, not the effective rate. Most sellers owe far less in actual NJ income tax because the graduated GIT brackets start at 1.4%. The difference between what is withheld at closing and what is actually owed is refunded when the seller files NJ-1040NR. Refunds typically take 4 to 12 weeks after filing.
NJ conforms to the federal Section 121 principal-residence exclusion per N.J.S.A. 54A:6-9.1. If you owned and used the property as your primary residence for at least 2 of the last 5 years, you can exclude up to $250,000 of gain (single) or $500,000 (married filing jointly). A seller who meets the current GIT/REP-3 principal-residence assurance files Box 2 at closing with no recording-time payment.
Current GIT/REP-3 (8-25) instructions specifically address gain above the Section 121 exclusion: Box 2 remains valid, and the seller does not submit an additional GIT/REP-1 or payment at recording. The taxable excess remains reportable on the applicable NJ return; a post-recording NJ-1040-ES estimated payment may be appropriate based on the seller's complete-year facts.
NJ residents file GIT/REP-3 (Box 1) and owe no estimated payment at closing. Entities (corporations, partnerships, LLCs) file GIT/REP-3 (Box 5). The GIT/REP-3 form includes 16 exemption boxes covering scenarios from principal residence sales to 1031 exchanges, foreclosures, divorce transfers, and military deployments. Sellers with a capital loss who do not qualify for any exemption box can apply for a GIT/REP-4 waiver at least 14 days before closing.
Part-year residents are treated as nonresidents for GIT/REP purposes. If you move out of NJ on or after the day of transfer, you cannot check Box 1. A seller who closes on their NJ home on the same day they leave the state is treated as a nonresident for the GIT/REP filing.
Single filer moving from NJ to South Carolina. Home purchased in 2005 for $100,000, $50,000 in documented improvements, sold in 2026 for $500,000. Primary residence for 10+ years. The Section 121 exclusion ($250,000 single) covers most but not all of the gain - but current GIT/REP-3 (8-25) instructions permit Box 2 despite the taxable excess. No additional GIT/REP-1 or estimated payment is due at recording, and the sale remains reportable on the applicable NJ return.
| Step | Amount |
|---|---|
| Sale price | $500,000 |
| Cost basis ($100,000 + $50,000 improvements) | $150,000 |
| Gross gain | $350,000 |
| Section 121 exclusion (single) | ($250,000) |
| Taxable gain | $100,000 |
| Recording-time payment with valid GIT/REP-3 Box 2 | $0 |
| Estimated NJ tax actually due on the $100,000 taxable gain | ~$4,180 |
| Post-recording NJ-1040-ES payment | Fact-dependent |
The planning point:A seller who meets the current form's principal-residence assurance may check GIT/REP-3 Box 2 even when gain exceeds the Section 121 exclusion. No additional GIT/REP-1 or payment is due at recording. The seller reports the $100,000 taxable excess on the applicable NJ return and may make a post-recording NJ-1040-ES estimated payment based on the complete-year facts; the ~$4,180 figure above is only an isolated tax-on-gain illustration.
Residency at transfer: Sellers who are genuinely still NJ residents at the time of transfer - based on actual residency facts like domicile and where they live when the deed transfers, not closing-date timing alone - file GIT/REP-3 Box 1 with no withholding at closing, and still report the gain on NJ-1040. Timing a closing does not by itself manufacture residency; if you have effectively moved, the nonresident forms and estimated payment apply.
If withholding has already happened: File Form A-3128 the day the deed is recorded if the payment clearly exceeds your actual NJ liability. Refunds typically arrive in 6-8 weeks; faster if you e-file NJ-1040NR.
The 2026 NJ exit tax withholding uses 10.75% (NJ's highest GIT rate) applied to the estimated gain, with a 2% of total sale price minimum floor. Many older sites incorrectly cite 8.97%; that rate has been outdated since 2020 when NJ added the 10.75% bracket (P.L. 2020, c.118).
No. Sellers who are still NJ residents at the time of transfer - based on actual residency facts such as domicile and where you live when the deed transfers, not closing-date timing alone - file GIT/REP-3 Box 1 and owe nothing at closing. The gain is still reported on the resident NJ-1040.
File Form A-3128 (Claim for Refund of Estimated Gross Income Tax Payment) immediately after the deed is recorded for a 6-8 week refund. Alternatively, claim the overpayment on your NJ-1040NR for the tax year of the sale. NJ does not pay interest on GIT/REP refunds, so filing quickly is in the seller's interest.
Yes. NJ conforms to IRC Section 121. Under current GIT/REP-3 (8-25) instructions, a seller who meets the principal-residence assurance may check Box 2 even when gain exceeds the federal and State exclusion. No additional GIT/REP-1 or estimated payment is due at recording; report the taxable excess on the applicable NJ return and consider a post-recording NJ-1040-ES estimated payment based on the complete-year facts.
They are separate obligations. The exit tax is an estimated income tax prepayment on capital gains. The mansion tax (restructured by P.L. 2025, c.69 effective July 10, 2025) is a Realty Transfer Fee surcharge now paid by the seller on deeds over $1 million, with rates from 1% to 3.5% depending on sale price.
Yes, in most cases. Even with no taxable gain, the 2% minimum withholding applies to the total consideration. A $400,000 property sale at a loss still owes $8,000 at closing. The seller can apply for a GIT/REP-4 waiver with documented proof of the capital loss (submit at least 14 days before closing), or pay the 2% and claim the full refund on NJ-1040NR.
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If the request fits current scope and capacity, Greg Monaco, CPA may reply in writing with availability, next steps, and proposed scope and pricing. Submitting the form does not create an engagement or promise a response or outcome. Privacy note: calculator inputs and results are not sent with this form; only the submitted contact fields are transmitted. Livingston, NJ; serving New Jersey.
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