Capital gains treatment of Treasuries

[jman3]

I understand that interest from Treasuries is tax free at the state level. Does that also apply to any capital gains resulting from the sale of Treasuries for example? Or is it just the interest that gets special tax treatment, but not any capital gains. Thanks!

[MaryK4]

Some states have specific tax exclusions for the capital gains from bonds (example Virginia), if you clarify which state I can check it for you. 

[jman3]

It is for New Jersey.

I appreciate your help, thank you!

[HopeS · Accepted solution]

Most investment income is taxable in NJ as interest, dividend, or capital gains.

However, some are exempt from tax withholding. This includes Interest and gains from government debt obligations (such as bonds) of the State of New Jersey or its political subdivisions. These subdivisions can include municipalities, counties, school districts, and authorities,

See below for a more detailed list of exemptions:

Nontaxable Investment Income

@jman3