It depends on your fact scenario. You don't indicate the type of property that's been disposed of, or the type of transaction that's relevant to your situation.
If you're referring to the sale of a New Jersey residence then, according to Principal Residence Exclusion in the New Jersey Tax Guide Buying or Selling a Home in New Jersey:
Whether you still reside in New Jersey or became a resident in another state, you may qualify to exclude all or part of the gain from the sale of your New Jersey home, based on federal guidelines (See IRS Publication 523). To qualify, you must have sold your principal residence in New Jersey, and you must meet the criteria on the following tests:
- Ownership Test: You owned the home for two or more years during the five-year period ending on the sale date;
- Use Test: You lived in the home as your principal residence for two or more years during the five-year period ending on the sale date;
- Additional Home Test: During the two-year period ending on the sale date, you didn’t exclude a gain from the sale of another home.
If you met all three requirements and your filing status is:
- Married Filing Joint, you may exclude up to $500,000 of the gain;
- If only one spouse met the Ownership and Use Tests, that qualified spouse can exclude up to $250,000 of the gain;
- Any other filing status, you may exclude up to $250,000 of the gain.
If this isn't what you're asking about, see the guide linked above and Part I: Net Gains or Income From Disposition of Property in the Instructions for 2023 Form NJ-1040NR.
