New Jersey Capital Gains Tax (2026)
New Jersey taxes capital gains as ordinary income on a graduated scale from 1.4% up to a top rate of 10.75%. Run your own numbers with the free capital gains tax calculator, which estimates federal, NIIT, and New Jersey tax together.
In short: federal long-term rates of 0%, 15%, or 20% apply everywhere. New Jersey adds state tax on top, at up to 10.75%.
How New Jersey treats capital gains
New Jersey taxes capital gains as ordinary income on a graduated scale from 1.4% up to a top rate of 10.75%.
2026 New Jersey income tax brackets
| Taxable income | Rate |
|---|---|
| $0 – $20,000 | 1.4% |
| $20,000 – $35,000 | 1.75% |
| $35,000 – $40,000 | 3.5% |
| $40,000 – $75,000 | 5.525% |
| $75,000 – $500,000 | 6.37% |
| $500,000 – $1,000,000 | 8.97% |
| Over $1,000,000 | 10.75% |
Single-filer taxable income. Married thresholds are doubled.
A worked example
Say you are a single filer in New Jersey with $60,000 of taxable income who sells stock held over a year for a $25,000 long-term gain. Federal tax on the gain is $3,750 (all of it lands in the 15% bracket at this income; no NIIT applies below $200,000 MAGI). New Jersey adds an estimated $1,466, for a combined $5,216, an effective 20.9% on the gain. These figures use the same math as the calculator, 2026 federal brackets per IRS Rev. Proc. 2025-32, and state figures from the Tax Foundation's State Individual Income Tax Rates and Brackets, 2026.
Frequently asked questions
Does New Jersey tax capital gains?
Yes. New Jersey taxes capital gains as ordinary income. New Jersey taxes capital gains as ordinary income on a graduated scale from 1.4% up to a top rate of 10.75%.
What will I pay on a long-term gain in New Jersey?
Combined, our worked example ($25,000 long-term gain on $60,000 of income, single) comes to $5,216: $3,750 federal plus $1,466 New Jersey tax, an effective 20.9%.
Do I still owe federal capital gains tax in New Jersey?
Yes. Federal capital gains tax (0%, 15%, or 20% long-term, ordinary rates short-term, plus the 3.8% NIIT for high earners) applies no matter your state. The free calculator estimates federal, NIIT, and New Jersey tax together.
More
- Every state's capital gains treatment
- Capital gains tax explained: short-term vs long-term
- Neighbors alphabetically: New Hampshire · New Mexico
This page is general information, not tax, legal, or financial advice. Rates and rules can change and depend on your situation. Confirm details with a tax professional, the IRS, or your state's revenue department.
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