The New Jersey treatment of gains from the sale of your principal residence is identical to the treatment of such gains for Federal income tax purposes. You may qualify to exclude up to $250,000 for single filers or up to $500,000 for joint filers of the capital gain realized from the sale of your principal residence regardless of age, as long as you owned and lived in the residence for 2 of the 5 years prior to the sale.

For additional information, refer to the section on Net Gains or Income From Disposition of Property in the New Jersey income tax return instruction booklet, Form NJ-1040.