Moving out of New Jersey changes your tax status for the sale
The state's tax guide says that a New Jersey resident who sells the home and moves out of state is treated as a nonresident for the sale. A nonresident usually pays an estimated Gross Income Tax at closing, equal to 2 percent of the consideration or 8.97 percent of the net gain, unless the seller qualifies for an exemption on the GIT/REP-3 form. The guide says a seller who meets one of the assurances listed on that form owes only the form. Ask your closing agent whether yours applies. Overpayments can be claimed back with Form A-3128 and a settlement statement.
