Capital Gains Tax for New Jersey (2026)
New Jersey (NJ) Key Facts
State Capital Gains Rate
10.75%
Taxed As
Ordinary income
Federal Rate Applies
Yes (0%, 15%, or 20%)
Long Term vs Short Term
Both taxed at state level
How This Calculator Works in New Jersey
This calculator estimates your combined federal and New Jersey capital gains tax. Enter your gain amount, holding period, and income to see your estimated tax.
New Jersey Overview
New Jersey taxes capital gains as ordinary income at rates up to 10.75%, one of the highest in the nation. Federal capital gains taxes also apply, with long-term rates of 0%, 15%, or 20% depending on income. The combined state and federal burden should be considered when planning asset sales or investment strategies.
How New Jersey Compares
New Jersey's capital gains rate of 10.75% compares to New York at 10.9% and Pennsylvania at 3.07%. State capital gains taxes significantly impact net investment returns.
| State | Top Rate | Notes |
|---|---|---|
| New York | 10.9% | New York has a capital gains rate of 10.9%. |
| Pennsylvania | 3.07% | Pennsylvania has a capital gains rate of 3.07%. |
| Delaware | 6.6% | Delaware has a capital gains rate of 6.6%. |
New Jersey's capital gains rate of 10.75% compares to a national average of approximately 5.04%. This is above the national average.
Tips for New Jersey Residents
- 1New Jersey taxes capital gains as ordinary income at rates up to 10.75%, one of the highest in the nation.
- 2Federal long-term gains (held 1+ year) are taxed at 0%, 15%, or 20%. New Jersey's state tax applies on top of the federal rate.
- 3Hold investments over one year to qualify for lower federal long-term rates rather than ordinary income rates.
- 4Tax-loss harvesting—selling losing investments to offset gains—reduces both federal and New Jersey state capital gains tax.
- 5Consider the combined federal + state rate when planning large asset sales. The total can exceed 34.5% for high earners.