[Parker]

Transfer Tax is what the state smugly calls it. Exit Tax is what a taxpayer rightly calls it.

[MikeV]

Yes I paid 2% also. Sold my fathers house after he died and because I was from Florida I had to pay the tax. I guess the state felt he exited NJ.

[Vladimir]

Transfer tax or exit tax is one and the same. Just moved from NJ and before I moved here I rented in NJ for 3 months after I sold my house. Paid about $500 at closing so the state gets the money and does not care where you move or rent or even stay in NJ - they get their money. HUD line item 1206

[MikeV]

Originally Posted by Vladimir

Transfer tax or exit tax is one and the same. Just moved from NJ and before I moved here I rented in NJ for 3 months after I sold my house. Paid about $500 at closing so the state gets the money and does not care where you move or rent or even stay in NJ - they get their money. HUD line item 1206

HUD line item 507 - Non Resident Tax - $2200 on a $110,000 sale price.

[dominick]

I must have paid the tax without knowing it. I was so happy to sell my home at a huge gain and get out of there that I didn't even notice. Silly me!!

[gustavo]

Originally Posted by pivo

I'm so confused now I understand if you sell jersey home and move to Fl. you now have to claim residency in Fl. which in case is called an exit tax because of changing residency.
It will probably change tomorrow like everything else in this state

I sold a house in NJ. The 2% is not an exit tax, it's a mandatory withholding for estimated tax for non residents. (see line 1117 of the HUD-1) When you file your NJ non resident income tax return, if you had a gain on the house per NJ law you will have that estimated payment applied to the tax due on the gain. If you didn't have a gain, you will get the estimated payment refunded to you.

BTW, the tax on the house gain is also due for a NJ resident but they are not required to put the estimated payment up front as they are not "fleeing" the state.

Hope that helps.