I moved to a CCR in NJ in 2023. My primary home sale closed in 2024 in VA. Is the home sale exempt from NJ tax? I reported it on non-resident VA return.

[AmyC]

Yes, it is taxable but with credit for the VA tax paid.

Resident Income Tax Return Instructions pages 7 & 8 show taxable and non-taxable income. If you had taxable income from the sale, NJ will give you a credit for double taxed income.

You get credit for the lower state tax on the lowest taxable amount.

• Each state calculates taxable income differently. 
• Each state has its own tax rate/ system.
• You get the lowest of both categories as a tax credit.