Is there a capital gains tax in New Jersey?

Yes, New Jersey imposes a capital gains tax, but it is not a separate tax; instead, capital gains are taxed as ordinary income. This means that any profit from the sale of assets is added to your overall income and taxed at the state’s income tax rates, which range from 1.4% to 10.75%, depending on your income level. It's essential for residents to report capital gains on their state tax returns.