NJ Realty Transfer Fee Update Takes Effect July 10— Here’s What Sellers Should Know
A significant change to New Jersey’s real estate tax law takes effect July 10, 2025 — and if you're planning to sell a property valued over $1 million, it’s important to understand how this could affect your transaction.
While the standard Realty Transfer Fee remains unchanged, a supplemental fee—commonly known as the “Mansion Tax”—has undergone a major shift in responsibility. Previously paid by the buyer, this fee will now be paid by the seller for most residential and commercial property sales over $1 million.
The tax is calculated as a percentage of the sale price:
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1% for sales over $1M up to $2M
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2% for sales over $2M up to $2.5M
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2.5% for sales over $2.5M up to $3M
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3% for sales over $3M up to $3.5M
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3.5% for sales over $3.5M
THE SELLER MUST PAY THIS FEE AT CLOSING TO HAVE THE DEED RECORDED
Suppose your contract is fully executed (out of attorney review) before July 10, 2025, and the deed is recorded by November 15, 2025. In that case, you may be eligible for a refund of any portion above 1% by filing a claim with the NJ Division of Taxation.
Use this Realty Transfer Fee Calculator to estimate your potential obligation.
This change may affect how sellers approach pricing, negotiation, and closing timelines. As your trusted real estate advisor, I’m here to help you navigate this transition with clarity and confidence.
Important note: This message is provided for informational purposes only and does not constitute legal or tax advice. Please consult your attorney or tax professional to assess how this law may affect your individual situation.
