New Jersey Capital Gains Tax Calculator
New Jersey taxes capital gains as ordinary income at the state level, which means a gain on selling shares, property or other investments is added to your other income and taxed using the New Jersey income tax brackets, with no separate preferential long-term rate like the federal system provides. This calculator estimates the New Jersey state tax on a capital gain by stacking the gain on top of your other taxable income and applying the sourced New Jersey Division of Taxation brackets for tax year 2024, then taking the difference. Enter your gain, your other annual taxable income and your filing status to see the state tax attributable to the gain and the effective rate on it. The result is the New Jersey state portion only; federal capital gains tax, which has separate short-term and long-term rates set by the IRS, is calculated separately. Because the gain stacks on your other income, the same gain is taxed at a higher rate the more you already earn. Some states provide specific exclusions or preferential treatment for certain gains; this tool uses the standard ordinary-income method and links the New Jersey Division of Taxation so you can confirm any special rule that applies to you.
New Jersey taxes capital gains as ordinary income. A $20,000.00 gain on top of $60,000.00 of other income (single) adds about $1,147.19 in New Jersey state tax, an effective rate on the gain of 5.74%.
How New Jersey taxes capital gains
New Jersey taxes capital gains as ordinary income, so the gain is added to your other income and taxed at the New Jersey bracket rates.
state tax on gain = state income tax on (other income + gain) - state income tax on (other income)
effective rate on gain = state tax on gain / gain x 100
New Jersey capital gains tax: frequently asked questions
How are capital gains taxed in New Jersey?
New Jersey taxes capital gains as ordinary income at the state level: the gain is added to your other taxable income and taxed using the New Jersey income tax brackets published by the New Jersey Division of Taxation. This calculator applies those brackets to your gain. Some states provide specific exclusions or rates for particular gains; confirm your situation with the New Jersey Division of Taxation.
How much state tax will I pay on a $20,000.00 capital gain in New Jersey?
Stacked on $60,000.00 of other income, a $20,000.00 gain adds about $1,147.19 of New Jersey state income tax for a single filer, an effective rate on the gain of 5.74%. Your figure depends on your total income and filing status; enter them above.
Does New Jersey have a separate long-term capital gains rate?
Most states, including the default treatment here, tax long-term and short-term capital gains at the same ordinary income rates, unlike the federal system which has preferential long-term rates. Any state-specific exclusion or preferential rate is set by the New Jersey Division of Taxation; this calculator uses the ordinary income method and links the source.
Does New Jersey have a standard deduction?
No. New Jersey does not have a standard deduction. Instead, NJ taxpayers may claim personal exemptions: $1,000 for single filers, $2,000 for married filing jointly, $1,500 for head of household, and $1,500 for each qualifying dependent. These exemptions are subtracted from NJ gross income.
What is New Jersey's top income tax rate?
New Jersey's top marginal income tax rate is 10.75%, applying to income over $1,000,000 for all filing statuses. This is one of the highest state income tax rates in the United States.
Are retirement and pension distributions taxed in New Jersey?
New Jersey taxes pension and retirement income, but provides an exclusion for taxpayers over 62 (or totally disabled) whose total income is below a threshold. The exclusion amount and income threshold are updated periodically. See the New Jersey Division of Taxation for current figures.
Does New Jersey have a local income tax?
New Jersey does not impose a general local income tax. However, Newark imposes a payroll tax on wages earned within the city, which employers pay. For most residents, only the state income tax applies at the individual level.
How is New Jersey taxable income calculated?
New Jersey gross income is calculated differently from federal adjusted gross income. NJ does not allow many federal deductions (such as IRA deductions or student loan interest). You start with your NJ gross income, subtract personal exemptions and any allowable NJ deductions, and apply the NJ rate schedule to the result.
Official sources
- New Jersey income tax rates applied to capital gains (tax year 2024): New Jersey Division of Taxation, as at Jun 12, 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 25 June 2026. See our methodology. General information, not financial or tax advice. State-specific exclusions, if any, are set by the New Jersey Division of Taxation.