New Jersey Capital Gains Tax Calculator
New Jersey taxes capital gains as ordinary income at graduated rates up to 10.75%. Estimate federal + state tax.
New Jersey taxes capital gains under its Gross Income Tax at the same graduated rates as other income, from 1.4% up to 10.75% above $1 million, and the Division of Taxation does not separate short-term from long-term gains.
| Rule | New Jersey |
|---|---|
| Rate | Graduated Gross Income Tax schedule, 1.4% to 10.75% (top bracket over $1,000,000). |
| Short- vs long-term | No distinction: "New Jersey does not differentiate between short-term and long-term capital gains." |
| Exempt | Gains on exempt obligations such as U.S. Treasury bonds, and fund distributions attributable to them, are not taxable. |
| Basis | Federal basis, except a New Jersey adjusted basis for partnership interests, sole proprietorships, rental property and S-corporation shares; a depreciation adjustment (GIT-DEP) may apply to assets placed in service from 2004. |
| Losses | Losses offset gains only within the same category of income and only in the year they occur; there is no carryforward. |
Sources: New Jersey Division of Taxation, "Capital Gains" (NJ Income Tax filing topic), read 2026-10-10; New Jersey Division of Taxation, tax rate tables (top rate 10.75%), read 2026-10-10.
Estimate only, not an official determination. What this estimate covers and its limits
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Additional Details
Pre-filled: Editable top/representative-rate proxy; not a state return calculation
Additional Details
Estimated Federal + State Tax
Estimated • Based on your inputs
Estimated Net Sale Proceeds
$87,125.00
Detailed Breakdown
Disclaimer: This calculator provides estimates for informational purposes only. Results should not be considered financial, tax, or legal advice. Consult a qualified professional for your specific situation.
How This Calculator Works
Calculation methodology and assumptions
The New Jersey line is the modeled gain times the 10.75% in the Modeled State Rate field, added to the federal estimate.
Estimate only — these are not official figures
State tax is not a return calculation: New Jersey does not distinguish short- from long-term gains. Its graduated Gross Income Tax schedule applies, with New Jersey basis adjustments and same-category loss rules that this tool does not calculate.
Do not rely on these amounts for budgeting or payment. For exact amounts, check the New Jersey tax authority (https://www.nj.gov/treasury/taxation/njit9.shtml).
Key State Information
Two rules make a New Jersey gain differ from the federal number. Basis can differ, because New Jersey and federal depreciation and expense deduction limits are different, and a loss is usable only against gains in the same category in the same year, so an unused loss is gone rather than carried forward. Installment sales are reported in the same year as on the federal return.
Example Calculation
A married couple in Bergen County with $160,000 of other taxable income sells shares after eight months for $185,000, $65,000 more than they paid.
Entered as $120,000 basis, $185,000 proceeds, married filing jointly, $160,000 of other income: the calculator finds a $65,000 short-term (8 months) gain, $14,572 of regular federal tax, and $6,988 of New Jersey tax at the 10.75% default.
Result: $21,560 in total (33.17% of the gain), leaving $163,441. The eight-month holding period matters only federally: New Jersey would tax the same $65,000 the same way after eight years. Its 10.75% default is the bracket above $1 million, so the couple's real New Jersey rate on the gain is lower.
StateCalc Team
Editorial Team
The StateCalc team builds free financial calculators using data from official government sources including the IRS, U.S. Census Bureau, BLS, and state revenue departments. All formulas are validated by an automated test suite and cross-referenced against published data.
Our editorial standardsFrequently Asked Questions
Does New Jersey tax long-term capital gains less?
No. The Division of Taxation states that New Jersey does not differentiate between short-term and long-term capital gains; both go through the Gross Income Tax rates.
Can I carry a New Jersey capital loss into next year?
No. A loss offsets gains in the same category of income only in the year it occurs, so a net loss that is not used that year is lost for New Jersey purposes.
Is a gain on Treasury bonds taxable in New Jersey?
No. Gains on exempt obligations such as U.S. Treasury bonds are not taxable, nor are capital-gain distributions from a qualified investment fund that come from exempt obligations.
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