New Jersey variant. This is a New Jersey-specific version of the Stock Sale Capital Gains Tax Estimator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Stock Sale Capital Gains Tax Estimator.
Most states tax capital gains as ordinary income. In New Jersey, that means a top rate of 10.75% on gains.
Capital gains tax in New Jersey
Federally, long-term gains are taxed at 0%, 15%, or 20% depending on income, plus a possible 3.8% net investment income tax. New Jersey then taxes the same gains as ordinary income at up to 10.75%.
Short-term gains (assets held under a year) are taxed as ordinary income at both levels - usually the most expensive outcome.
About taxes and housing in New Jersey
New Jersey uses a graduated income tax with a top marginal rate above 10% on the highest earners.
New Jersey has the highest effective property tax rate in the United States, near 2.5%, with median home values exceeding $500,000.
New Jersey's economy is shaped by its dense corridor between New York City and Philadelphia, with pharmaceuticals, finance, and logistics as key sectors.
Worked example: $50,000 long-term gain
A $50,000 long-term gain: federal 15% = $7,500, plus New Jersey state tax up to 10.75% = $5,375, for a combined bill near $12,875.
Quick reference
- State income tax: 1.4-10.75% across 7 brackets
- State sales tax: 6.625% (plus -0.02% avg local)
- Median home value: $510,000
- Median household income: $97,126
- Effective property tax rate: 2.49%
- Avg auto insurance: $2,076/yr
Frequently Asked Questions
Does New Jersey tax capital gains?
Yes - New Jersey taxes capital gains as ordinary income at up to 10.75%.
What's the difference between short and long-term gains?
Assets held over a year get preferential long-term federal rates (0/15/20%); shorter holds are taxed as ordinary income.