NJ Exit Tax

As soon as a non-resident sells a property, New Jersey withholds either 8.97 percent of the profit or 2 percent of the total selling price, whichever is higher.  The rule applies to both those who have second residences in the state and residents who are moving out for good.  

The measure is actually a capital gains tax withholding that the state imposes each time a “non-resident taxpayer” sells a home. (If you sell at a loss, then there will be no capital gains tax to withhold.) When such a seller eventually files his New Jersey tax return, he is refunded the difference between what is owed and what was withheld. (The state does not withhold this money from primary residents because they are expected to make the payment when they file their returns for the year.)