The federal exclusion
If you owned and lived in the home as your main home for at least two of the five years before the sale, you can generally exclude up to $250,000 of gain ($500,000 for most married couples filing jointly).
Your basis
Your gain is the sale price minus selling costs minus your adjusted basis: what you paid plus qualifying improvements (an addition or new roof, not routine repairs). Keep receipts.
New Jersey
New Jersey taxes gains as income, with rules that generally follow the federal exclusion for a principal residence. Non-resident sellers may need to file estimated tax forms at closing. Your attorney and tax professional will guide you.
Questions, answered
Do I pay capital gains if I sell my house in NJ?
Many owners don’t, because of the $250,000/$500,000 federal exclusion for a main home. Confirm with a tax professional.
General information, not legal, tax or lending advice. Rules change; confirm with your attorney, tax professional or lender.