NJ capital gains tax calculator
NJ capital gains tax calculator: enter the purchase, the sale and your wages, and the calculator below prices the gain three times before it finishes. The federal return applies the 0/15/20 long-term schedule. The net investment income tax may follow. Then New Jersey runs the same gain through its own rate table.
New Jersey gives a capital gain no preferential treatment and no standard deduction to hide behind. The state's Table A starts at 1.4% and ends at 10.75% on income above $1,000,000, and the gain is simply income inside it.
How it works
How New Jersey taxes a capital gain
First the federal layer. A holding period of more than one year makes the gain long-term, and the 2025 schedule for a single filer charges nothing below $48,350 of taxable income, 15% up to $533,400, 20% above. Short-term gains never see those bands; they ride the ordinary brackets that top out at 37%.
Then the state layer, and here New Jersey stands apart from its neighbours: there is no standard deduction at all. Every dollar of the gain enters Table A. For a single filer the table runs 1.4% on the first $20,000, 1.75% to $35,000, 3.5% to $40,000, 5.525% to $75,000, 6.37% to $500,000, 8.97% to $1,000,000 and 10.75% above. Joint, head-of-household and surviving-spouse returns use Table B, which adds a 2.45% band from $50,000 to $70,000 and runs the 5.525% band from $80,000 to $150,000; the calculator applies Table B when you pick one of those statuses.
A third charge can join them. The net investment income tax is federal, 3.8% of the lesser of your net investment income or the excess of modified adjusted gross income over $200,000 for a single filer. New Jersey levies no tax of that name; its bill is the bracket walk.
Worked example
Shares held three years: $17,476 on a $80,000 gain
You buy $45,000 of stock in February 2022 and sell for $125,000 in November 2025, a holding period of close to four years. Wages are $130,000, filing single.
The federal return taxes $114,250 of the wages after the standard deduction, so the $80,000 long-term gain is clear of the $48,350 zero breakpoint with room to spare: all of it pays 15%, which is $12,000. Modified adjusted gross income reaches $210,000, $10,000 past the net investment income tax threshold, so the surcharge applies to $10,000 of it: $380. Federal total $12,380.
New Jersey next. The wages already sit in the 6.37% band, which runs from $75,000 to $500,000, so the gain rides that same band from its first dollar: $80,000 at 6.37% is $5,096. Combined, $17,476 of tax on the one gain, an effective 21.8%.
One long-term share sale, 2025, single filer
| Step | Amount |
|---|---|
| Sale proceeds | $125,000 |
| Cost basis (purchase price) | $45,000 |
| Long-term capital gain | $80,000 |
| Federal income tax on the gain at 15% | $12,000 |
| Net investment income tax at 3.8% | $380 |
| New Jersey tax on the gain at 6.37% | $5,096 |
| Combined tax on the gain | $17,476 |
The New Jersey details
What the state layer counts, and what it skips
- No standard deduction. New Jersey never adopted one. Other charges on the return, the exemptions and the medical and property-tax deductions, are real but the calculator does not model them, so the state figures shown run high by those amounts.
- Table A is the single or married-filing-separately schedule and the one this page's example uses. Joint, head-of-household and surviving-spouse returns use Table B, and the calculator selects the table from the filing status you choose.
- Holding period means nothing in Trenton. The one-year line that splits short from long federally does not exist in the state's rate table; both kinds of gain are the same kind of income.
- One gain, one walk. Because the gain is stacked on your other income, a large gain can push itself into the 8.97% and 10.75% bands; the calculator's whole-year method captures every band it crosses.
Questions
Frequently asked questions
Does New Jersey tax capital gains as ordinary income?
Yes. A gain joins your other income in Table A and pays the same rates, from 1.4% up to 10.75%. New Jersey has no long-term rate and no capital-gains discount.
What is New Jersey's capital gains tax rate?
The rate is whatever band the income lands in. The bands reach 6.37% between $75,000 and $500,000 of income and 10.75% above $1,000,000.
Does New Jersey have a standard deduction against the gain?
No. The state allows no standard deduction at all, so the gain enters the rate table from its first dollar. The exemptions and the medical and property-tax deductions the return does allow are not modelled by the calculator.
Do I pay the net investment income tax to New Jersey?
No. That tax is the federal 3.8% charge on investment income above a modified-AGI threshold of $200,000 for a single filer. New Jersey's own bill is its bracket table only.
Is the one-year holding period irrelevant in New Jersey?
State-side, yes. The one-year test splits short-term from long-term on the federal return and changes nothing in the state table. The dates still matter federally, so enter them.
What does the calculator assume about filing status?
The state layer follows your filing status. Single and married-filing-separately returns use Table A; joint, head-of-household and surviving-spouse returns use Table B, with its wider brackets.
Sources
Where these figures come from
Also on capitalgainstax.net