NJ Gross Income Tax Fees

NOTE! State Gross Income Tax forms are updated from time to time. Check the NJ Division of Taxation website to confirm you are using the current version of the form.

NJ Gross Income Tax Fees

Transactions occurring on or after August 1, 2004 involving nonresident individuals, estates or trusts that sell or transfer real property in New Jersey, require that an estimated Gross Income Tax payment be made prior to the recording of the deed. The payment must be remitted to the Division of Taxation Prior to closing or can be made at closing. The estimated payment is determined by multiplying the seller’s gain, as computed for tax purposes, times the Gross Income Tax highest rate of 8.97%. In no case may the estimated payment be less than 2% of the consideration paid. Prior to closing, sellers prepaying will complete the Nonresident Seller’s Tax Prepayment Receipt from GIT/REP-2 along with NJ 1040ES and file them at one of the Division’s regional branch offices. (Locations of these branch offices are listed on the Division’s Website shown below.) Sellers not prepaying must complete the Nonresident Seller’s Tax Declaration form GIT/REP-1 and make payment at closing.

Sellers that meet one of the following conditions are not required to make estimated payments and will complete the Seller’s Residency Certification/Exemption form (GIT/REP-3) which must be submitted at closing.
  • Seller is a resident of New Jersey and will be filing a resident Gross Income Tax return for the year of the sale.
  • Seller will be claiming an Income exclusion under Section 121 of the Internal Revenue Code of 1986 for the property being sold.
  • Seller is a mortgagor conveying the mortgaged property to a mortgagee in foreclosure or in a transfer in lieu of foreclosure with no additional consideration.
  • Seller, transferor or transferee is an agency or authority of the United States of America, or the State of New Jersey, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Government National Mortgage Association, or a private mortgage insurance company.
  • Seller is not an individual, estate or trust and as such is not required to make an estimated payment pursuant to N.J.S.A. 54A:1-1 et seq.
  • The total consideration received is $1,000 or less and as such not required to make an estimated payment pursuant to N.J.S.A. 54A:1-1 et seq.

The new Gross Income Tax forms GIT/REP-1 Nonresident Seller’s Tax Declaration and GIT/REP-3 Seller’s Residency Certification/Exemption are available from the Division of Taxation offices or can be downloaded from the Division of Taxation’s website at www.state.nj.us/treasury/taxation. Form GIT/REP-2 Nonresident Seller’s Tax Prepayment receipt is only available at one of the Divisions of Taxation’s Regional Taxpayer Service Locations.

The buyer will submit the Seller’s Residency Certification/Exemption, the Nonresident Seller’s Tax prepayment Receipt, or the Nonresident Seller’s Tax Declaration and tax payment to the county clerk’s office when the deed is recorded. No deed for the sale or transfer of real property shall be accepted or recorded by the county recording officer without the simultaneous filling of the appropriate forms with any required payment of the tax due or proof of payment.

The GIT forms apply to the ‘Grantor’ only. Click on the GIT form below for a summary of its use.

GIT/REP-1 This form would be used to accompany the estimated gross income tax payment on the gain from the transfer/sale of the real property by NON-RESIDENT INDIVIDUALS, ESTATES or TRUSTS. The check should be made payable to the NJ Division of Taxation and be sent with the deed to the County Clerk’s Office. Our office will forward the check to the Division of Taxation. THIS CHECK SHOULD NOT BE SENT SEPERATELY TO THE DIVISION OF TAXATION OR WE WILL NOT BE ABLE TO RECORD THE DEED.
GIT/REP-2 This form would be used by a nonresident individual, estate or trust and is a PREPAYMENT RECEIPT they would receive if they went to the Division of Taxation Office and paid the tax prior to recording the deed. The ORIGINAL WITH THE RAISED STATE SEAL must be sent with the deed for recording.
GIT/REP-3 This form is the most often used form. It is to be used by residents of NJ who will be paying any applicable taxes with their yearly state income tax. AND FOR ANY GRANTOR – EITHER RESIDENT OR NON-RESIDENT – WHO FALL IN ONE OF THE CATEGORIES LISTED ON THE FORM (1 to 7).
GIT/REP-4 This form is used when the Division of Taxation has granted a waiver to the grantor so they do not have to file any other GIT/REP form or pay any tax. This form can only be obtained from the Division of Taxation and the ORIGINAL WITH THE RAISED STATE SEAL must be sent with the deed for recording.
GIT/REP-4A This form is used with deeds that need to be RE-RECORDED due to a typographical, clerical error or omission and there is no consideration. THIS IS THE ONLY FORM THAT CAN BE COMPLETED AND SIGNED BY THE GRANTEE if the circumstances are such that the grantor cannot be located.

All of these forms can be obtained by going to the DIVISION OF TAXATION website. On their web page you will see a category for ‘FORMS’; click on this and you will find a list of available forms, the GIT/REP forms will be there and can be printed. There are additional instructions that will print with the form. Please read them.

Questions on Chapter 55 and the new Gross Income Tax estimated payment requirements should be directed to (609) 292-6400.  Click here for a list of FAQs about GIT forms.

For the purposes of this law, county recording officers shall act as the agents of the Director of the Division of Taxation. County treasurers are permitted to retain $10.00 per filing of the Nonresident Seller’s Tax Declaration form to offset additional direct expenditures incurred by the county recording officer and the county treasurer for the implementation of these responsibilities.

Attorneys, title insurance officers, and participants in real property transfers are urged to forward the necessary closing documents to the county recording officer as soon as possible to facilitate the implementation of the new laws.

For additional information on the rate increases, gross income tax requirements, or to download the newly devised Realty Transfer Fee forms, please visit the Division of Taxation’s Website at:

http://www.state.nj.us/treasury/taxation (Division of Taxation)