The NJ “Exit Tax” Explained: What GIT/REP Actually Does

Updated August 27, 2026 · By Jorge Ramirez, Keller Williams Premier Properties · NJ License #1754604

Start with the official form, not the nickname

GIT/REP is a deed-recording and estimated-tax process. It is separate from the NJ Realty Transfer Fee and separate from the seller’s final federal or New Jersey income-tax liability. A closing professional or tax adviser should determine which current form applies from the facts and documents.

The Division’s FAQ describes seller assurances that can apply in specified circumstances. Do not assume an assurance from a short online summary: residency, property use, ownership, transfer type and other facts can change the filing.

How an estimated payment is calculated when required

The official FAQ states that a nonresident seller’s estimated payment is 10.75% of the gain, with a minimum payment of 2% of the consideration. That is an estimated payment at deed recording—not a calculation of final liability. Confirm gain, consideration and any seller assurance with the professional responsible for the filing.

Payment, credit and refund are different questions

A required estimated payment is generally credited through the applicable New Jersey filing. Whether any additional tax, credit or refund results depends on the properly filed return or refund claim, the seller’s actual tax liability and Division review. No refund amount or timing can be predicted from the sale price alone.

Documents to gather before closing

• The current GIT/REP form selected for the transaction and the seller’s residency documentation.
• Purchase and sale records, settlement statements and records affecting adjusted basis.
• Documentation of improvements and transaction costs for the tax professional to review.
• Any facts relevant to a seller assurance, supported by the current form instructions.

Do not confuse GIT/REP with capital-gain rules

The estimated payment process does not decide whether a home-sale exclusion applies or what final gain is taxable. The IRS home-sale overview and NJ Division of Taxation home-sale guidance explain those separate rules. See the related NJ home-sale capital-gain guide for a source map, then take property-specific questions to a qualified tax professional.

Questions to ask at closing

Which GIT/REP form is being filed?

Ask the closing professional to identify the form, the facts supporting it and where it appears in the closing package.

Does a seller’s assurance apply?

That is a transaction-specific determination under the current instructions. Ask the preparer to document the basis; do not self-classify from a web article.

If a payment is required, what happens next?

Ask the tax professional what New Jersey return or refund filing may be required, what records to retain and how a payment will be credited. The outcome depends on the filing and actual liability.