Listing Resources

Nonresidents (individuals, estates, and trusts) who sell a New Jersey property are required to complete and sign the GIT/REP-1 or GIT/REP-2 form to record the deed and close the sale. Nonresident sellers are required to pay estimated Gross Income Tax in the amount of 2% of the consideration or 8.97% of the net gain from the sale, before or at the time of closing. 

• Exception: Only the completed form is required if the nonresident individual, estate, or trust meets one of the seller’s assurances listed on the GIT/REP-3 form, exempting them from making the estimated tax payment. 

Estimated payments are necessary if you have income that is not subject to withholding. Since there may be no other reason for a nonresident to file a New Jersey tax return and pay tax, we require the tax due be estimated and paid upfront. Nonresidents who sold property in New Jersey are required to file the NJ-1040-NR for the year in which the property was sold.  The State will refund the taxpayer any overpaid tax once the return has completed processing.  

Additional Questions? See The FAQs on GIT Forms Requirements for Sale/Transfer of Real Property in New Jersey. 

If you have any questions regarding gross income tax payments for nonresidents, call (609) 292-6400.