Estimated tax is for income without withholding
The state tax guide explains that estimated payments are required from nonresident sellers because there may be no other reason for them to file a New Jersey return, so the tax is estimated and paid up front. The amount is 2 percent of the consideration or 8.97 percent of the net gain, unless the seller meets one of the assurances listed on the GIT/REP-3 form. A seller can ask for an early refund of an overpayment with Form A-3128 and a settlement statement.
