New Job in Another State: Should You Sell or Rent Out Your New Jersey Home?

Sell if you're not planning to come back, you need the equity for the next home, or you don't want to be a landlord from far away. Rent it out if the rent covers the full cost of owning it, you're ready to manage it or pay someone who will, and you understand how renting changes the taxes when you eventually sell. Both can be right. Run the numbers on each before you sign a lease or a listing agreement.

I'm Dennis Mark Interdonato with The Dennis Mark Group. A job offer in another state is one of the most common reasons homeowners in Monmouth and Ocean County call me, usually with a start date already on the calendar. Here's how I help them decide, and the New Jersey and federal rules that matter either way.

What should you compare before deciding?

• What the home would sell for and what you'd net after the payoff and selling costs. Start with a free home value.
• What it would rent for, against your mortgage, property taxes, insurance, repairs, vacancy and management.
• Whether you'll come back. Some job moves are permanent and some aren't.
• Your next purchase. If the equity is your next down payment, renting may not be an option.
• The tax picture on a sale now versus a sale later. More below.

Does New Jersey hold back tax if you've already moved?

It can. The NJ Division of Taxation says New Jersey residents who sell their home and move out of state are considered nonresidents for the sale, and New Jersey may require an estimated tax payment at closing (NJ Division of Taxation). For a nonresident, the estimate is the federal gain times the state's highest income tax rate for the year, and not less than 2% of the sale price (NJ Division of Taxation, TB-57(R)).

Two exceptions come up often. A seller who's still a New Jersey resident on the closing date can certify that on the closing form, even if they move afterward. And a seller whose home was a principal residence meeting the federal home sale exclusion rules can claim an exemption. Your attorney and tax professional confirm which applies. The details are in the NJ "exit tax" when you sell and move out.

How does the federal home sale exclusion fit in?

From IRS Publication 523 (IRS Publication 523):

• If you owned and lived in the home for at least 24 months of the 5 years before the sale, you may exclude up to $250,000 of gain, or $500,000 if married filing jointly.
• If you haven't hit 2 years, you may qualify for a partial exclusion when you take a new job at least 50 miles farther from the home than your old work location.
• If you rent the home after you move out, the IRS doesn't count that rental time after your last use against you, but you can't exclude the part of the gain equal to depreciation you claimed while it was rented. And the 5-year look-back keeps moving, so a long rental can end your eligibility.

What does renting it out involve in New Jersey?

• Registration. Landlords file a certificate of registration, with the municipal clerk for a one-unit rental. If you live outside the county where the home is, the certificate has to name someone in that county who's authorized to accept notices from the tenant and service of legal papers for you (N.J.S.A. 46:8-28).
• The alarm certificate. It's required before a one- or two-family home is leased, not only when it's sold (N.J.A.C. 5:70-2.3).
• Income tax. In most cases, rent is included in your gross income, and a home converted to a rental is depreciated from the lower of its adjusted basis or its fair market value when you convert it (IRS Publication 527).
• The lease. New Jersey's landlord and tenant rules are detailed. If you might want to sell or move back later, talk to an attorney before you sign a lease.
• Management. Repairs, showings and late-night calls don't stop because you're 500 miles away. Price in a property manager if you won't be close.

Are moving expenses deductible?

For most people, no. The IRS limits the moving expense deduction to members of the Armed Forces on active duty moving under military orders, and, for moves in 2026 or later, certain employees and new appointees of the intelligence community (IRS Topic 455). The IRS also says the One Big Beautiful Bill Act permanently eliminated the exclusion for employer reimbursements of qualified moving expenses, except for active-duty military moves (IRS Publication 15-B). If your employer is paying for the move, ask HR and your tax professional how it will be reported.

How do you sell a home after you've already moved?

You don't have to be here for the sale. I coordinate the prep and the showings, line up any repairs (I got a guy for everything), and send you a written update at every milestone: what happened, what's next, and what to have ready. Ask your attorney early how the closing documents can be signed from where you'll be. If you're also buying in the new city, line up your lender there before your home goes on the market.

Frequently Asked Questions

Should I sell or rent my house when I move for a job?

Compare the net from a sale today with the full monthly cost of renting it out, add the tax picture on a later sale, and decide whether you want to be a landlord from a distance. I'll put both on one page for you.

Will New Jersey take money at closing if I've moved out of state?

It may. The NJ Division of Taxation can require a nonresident seller to make an estimated income tax payment at closing, with exemptions that include a principal residence meeting the federal exclusion rules.

Can I still get the capital gains exclusion if I rent my house first?

Possibly, if you meet the 2-of-5-year use test on the sale date. Depreciation claimed during the rental can't be excluded. Your tax professional can run the dates.

Do I have to be in New Jersey to sell my house?

No. I handle the showings and the work at the house, and your attorney can tell you how the closing documents can be signed from where you are.

This is general information, not legal, tax or lending advice. Your attorney and tax professional handle the residency, tax and lease questions.

About the author

Dennis Mark Interdonato is a REALTOR® and Master CDRE® who leads The Dennis Mark Group at Keller Williams Realty Ocean Living in Point Pleasant, NJ, helping buyers and sellers throughout New Jersey make their next move, with Monmouth and Ocean County as home base. Read more about Dennis Mark.

Keep reading

• How Dennis Mark helps with a move for work and planning around a life event
• Plan it step by step with the free Life Events Guide.
• The Relocation Guide, with the move from start to finish
• Rent or sell, it starts with a number: get a free home value.
• Buying the next home before this one sells? Read how to time two moves.
• Have a question this didn't answer? Send it to Dennis Mark and it may become the next article.