Yes, this is taxable income for both states. Income is always taxable to your home state unless it is exempt.
Nonresidents of Pennsylvania. PA law taxes the income you earn, receive and realize from PA sources.
Net Gain (Loss) from the Sale, Exchange or Disposition of Property
Nonresidents must report net income (loss) from the sale of real or tangible property in Pennsylvania.
NJ and PA do have reciprocity, but it does not pertain to capital gains.
NJ Income Tax – PA/NJ Reciprocal Income Tax Agreement
Compensation paid to Pennsylvania residents employed in New Jersey is not subject to New Jersey Income Tax under the terms of the Reciprocal Personal Income Tax Agreement between the states.
Similarly, New Jersey residents are not subject to Pennsylvania income tax either. Compensation means salaries, wages, tips, fees, commissions, bonuses, and other payments received for services rendered as an employee.
The Reciprocal Agreement covers compensation only. If you are self-employed or receive other income (ie., gain from the sale of property) that is taxable in both states, you must file a New Jersey nonresident return and report the income received.
Reciprocity
