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You can sell your primary residence and avoid paying capital gains taxes on the first $250,000 of your profits if your tax-filing status is single, and up to $500,000 if married and filing jointly. The exemption is only available once every two years.

The State of New Jersey imposes a Realty Transfer Fee (RTF) on the seller whenever there is a transfer of title by deed. The fee is based on the sales price of the property, and the seller is required to pay the fee at the time of closing.

There is an exclusion on capital gains up to $250,000, or $500,000 for married taxpayers, on the gain from the sale of your main home. That exclusion is available to all qualifying taxpayers?no matter your age?who have owned and lived in their home for two of the five years before the sale.

What Is The New Jersey Capital Gains Tax? Taxable Income (Single Filers)Tax Rate on This Income$40,000 to $75,0005.525%$75,000 to $500,0006.360%$500,000 to $1,000,0008.970%$1,000,000 or more10.75%3 more rows

If you sold your primary residence, you may qualify to exclude all or part of the gain from your income. Your capital gain is calculated the same way as it is for federal purposes. Any amount that is taxable for federal purposes is taxable for New Jersey purposes. Single filers can qualify to exclude up to $250,000.

Another capital gains tax strategy is known as a 1031 exchange. Through a 1031 exchange, a real estate owner sells an investment property in exchange for a property that's valued at an equal or higher amount. This enables the investor to put off paying capital gains tax on profit from the sale.