Calculate your estimated seller transfer fees for New Jersey real estate transactions
A tiered fee based on sale price, paid by the seller when recording the deed. Rates range from $2.00 to $6.05 per $500 of consideration.
For sales over $1 million, an additional flat tax applies (1% to 3.5% of total price). Some property types are exempt.
Enter the total sale price or consideration
Property type determines Mansion Tax applicability
This transaction appears to qualify for an exemption. Confirm eligibility with your attorney or county clerk.
Important: This calculator provides estimates based on current New Jersey law (effective July 10, 2025). Actual fees may vary based on specific circumstances, exemptions, or local requirements. Consult with a real estate attorney or your county clerk's office for official calculations. AdvisorFinder is not responsible for any discrepancies between estimated and actual fees.
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When Maria listed her Jersey City townhouse for $2.1 million in August 2025, she expected to walk away with a substantial profit. She'd owned the property for eight years and watched its value climb steadily. But at closing, she was shocked to discover she owed $44,000 in transfer taxes - more than double what her neighbor paid just six months earlier for a similarly priced property.
What changed? New Jersey's Mansion Tax restructuring in July 2025 shifted the entire tax burden onto sellers and dramatically increased rates for high-value properties. Maria's experience isn't unique. Thousands of New Jersey sellers are discovering that transfer fees can consume a significant portion of their proceeds, especially if they don't understand the rules.
Whether you're selling a $300,000 starter home or a multi-million dollar estate, New Jersey's transfer fees will affect your bottom line. The question is: by how much?
This article covers essential information about New Jersey's Realty Transfer Fee and Mansion Tax, including current rates, the 2025 tax restructuring, calculation methods, exemptions for family and senior sellers, and strategies for planning your real estate transaction costs.
The Realty Transfer Fee (RTF) is a state-level tax imposed whenever property ownership changes hands in New Jersey. First established in 1968, the fee was created to offset the administrative costs of tracking real estate transactions throughout the state.
The RTF applies to virtually all property sales in New Jersey, with few exceptions. The fee is based on the total consideration (typically the sale price) listed on the deed. For official guidance on current rates, forms, and filing requirements, refer to the New Jersey Division of Taxation's Realty Transfer Fee page. Payment must be made before the county clerk will record your deed, making it a mandatory part of the closing process.
By law, the seller (grantor) is responsible for paying the RTF. However, real estate is fundamentally a negotiated business. Purchase agreements can specify that the buyer will cover some or all of the transfer fee, or that the cost will be split between parties.
That said, regardless of what's negotiated in the contract, the seller remains legally liable for any unpaid or additional fees discovered after the deed is recorded. This creates an incentive for sellers to ensure proper calculation and payment at closing.
New Jersey's so-called "Mansion Tax", officially the Graduated Percent Fee or Supplemental Realty Transfer Fee, underwent a dramatic restructuring in mid-2025. These changes significantly increased the cost of selling high-value properties in the state.
This represents a major shift in who bears the cost and how much is owed. For a $2.5 million property, the seller now owes $50,000 in Mansion Tax alone - five times the previous $25,000 that buyers paid.
The Mansion Tax now uses a tiered system where the entire sale price is taxed at the applicable rate for that tier. For additional resources and a helpful calculator, visit the New Jersey REALTORS Graduated Percent Fee information page.
| Sale Price Range | Tax Rate | Example: Tax Due |
|---|---|---|
| $1,000,001–$2,000,000 | 1% | $1.5M sale = $15,000 |
| $2,000,001–$2,500,000 | 2% | $2.2M sale = $44,000 |
| $2,500,001–$3,000,000 | 2.5% | $2.8M sale = $70,000 |
| $3,000,001–$3,500,000 | 3% | $3.3M sale = $99,000 |
| $3,500,001+ | 3.5% | $4M sale = $140,000 |
The tax rate applies to the entire sale price, not just the amount over each threshold. A property selling for $2,000,001 is taxed at 2% on the full amount, not just on the dollar over $2 million.
Not all properties over $1 million are subject to the Graduated Percent Fee. The tax applies to:
This includes single-family homes, condominiums, townhouses, and cooperative units. Any land with a residential dwelling falls into this category.
Agricultural land with residential structures is subject to the tax. However, farmland without any buildings or farmland qualifying for farmland assessment may be exempt.
Income-producing commercial real estate including office buildings, retail spaces, restaurants, theaters, and other commercial establishments.
Several property types are not subject to the Graduated Percent Fee, even if they sell for over $1 million:
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New Jersey law provides several situations where the RTF doesn't apply at all. Understanding these exemptions can save thousands of dollars if your transaction qualifies.
The most commonly used exemption involves transfers between close family members:
A mother selling her home to her daughter and son-in-law for $400,000 pays no RTF if the daughter and son-in-law are married. If the daughter is selling to her boyfriend, only half the consideration is exempt.
Property transferred within 90 days of a final divorce decree is exempt from the RTF. This allows divorcing couples to divide assets without incurring additional tax burdens during an already difficult time.
The 90-day window begins when the divorce is finalized, not when separation occurs or divorce proceedings begin.
When property passes through inheritance, either via a will or through intestate succession, no RTF is due. An executor or administrator transferring property to heirs as part of estate distribution doesn't trigger the fee.
This exemption recognizes that inherited property transfers aren't arm's-length sales, and the estate may have already paid substantial inheritance taxes.
Transfers involving certain entities are automatically exempt:
Additional situations that avoid the RTF include:
While full exemptions eliminate the RTF entirely, partial exemptions reduce the fee by approximately 50%. These reduced rates recognize that certain populations may face financial hardship from the full tax burden.
Sellers who are 62 or older and have owned and occupied the property as their primary residence qualify for the reduced rate. If multiple owners exist, all must be seniors (or married to a senior) to claim the full partial exemption.
Individuals who are legally blind or permanently disabled and have occupied the property as their primary residence receive the reduced rate.
Transfers of qualified affordable housing receive partial exemption under certain circumstances.
For transactions not exceeding $350,000:
| Amount Range | Standard Rate | Reduced Rate |
|---|---|---|
| First $150,000 | $2.00 per $500 | $0.50 per $500 |
| $150,001 to $350,000 | $3.35 per $500 | $1.25 per $500 |
For transactions exceeding $350,000, the reduction applies to multiple tiers, with rates cut by approximately 50% across the board.
To claim a partial exemption, sellers must:
The New Jersey Division of Taxation - Realty Transfer Fee Page provides official guidance on realty transfer fees, including current rates, forms, and filing requirements.
Beyond direct property sales, New Jersey also taxes certain transfers of ownership interests in entities that hold real estate. The Controlling Interest Transfer Tax (CITT) prevents individuals and corporations from avoiding transfer fees by selling shares in a company rather than the property itself.
The CITT is triggered when:
50% or more ownership in an entity changes hands
The entity owns New Jersey real property
The total consideration exceeds $1 million
The property falls into qualifying classes (primarily commercial)
The CITT mirrors the Mansion Tax structure implemented in July 2025:
| Transaction Value Range | CITT Rate |
|---|---|
| $1,000,001 – $2,000,000 | 1% |
| $2,000,001 – $2,500,000 | 2% |
| $2,500,001 – $3,000,000 | 2.5% |
| $3,000,001 – $3,500,000 | 3% |
| $3,500,001+ | 3.5% |
As with direct property transfers, the seller (the party selling their ownership stake) is responsible for paying the CITT.
The controlling interest tax doesn't apply when:
Understanding how to properly file and pay transfer fees ensures smooth closing and prevents delays in deed recording.
In most New Jersey transactions, your closing attorney or title company handles the calculation and payment of transfer fees. They:
Important: The county clerk will not record your deed until all applicable transfer fees are paid in full.
Transfer fee revenue is divided between the state and the county where the property is located. The state's portion funds:
Counties receive their share for local use at their discretion.
Properties with new construction (entirely new improvements not previously occupied) pay an additional $1.00 per $500 supplemental fee on the first $150,000 of consideration. However, they may also qualify for a partial exemption that reduces the base RTF rate by 80% on that first $150,000.
New Jersey provided limited relief for Class 4A commercial property transactions caught in the July 2025 transition. For detailed legal guidance on refund provisions and other transition issues, refer to this comprehensive analysis from Hunton Andrews Kurth LLP.
Sellers can file for a refund of amounts paid over the old 1% rate within one year of recording.
Properties that serve multiple purposes can be tricky. A building with ground-floor retail and residential apartments above might be classified differently depending on the primary use. Consult with a real estate attorney or tax professional to determine proper classification and applicable fees.
Remember: Transfers between relatives beyond immediate family do not qualify for the family exemption and are subject to full RTF and applicable Mansion Tax.
By law, the seller (grantor) is responsible for paying the Realty Transfer Fee. However, buyers and sellers can negotiate in their purchase agreement to have the buyer cover some or all of this cost. Regardless of what's negotiated, the seller remains legally liable for any unpaid or additional fees discovered after closing.
For a $500,000 home, you would pay approximately $4,020 in Realty Transfer Fee. If the property qualifies for the Mansion Tax (residential, farm with dwelling, or most commercial), there would be no additional Graduated Percent Fee since the sale price is under $1 million. Your total transfer fee obligation would be around $4,020.
The Mansion Tax changed on July 10, 2025. Previously, buyers paid a flat 1% fee on properties over $1 million. Now sellers pay a graduated percentage that ranges from 1% to 3.5% depending on the sale price, with the highest rates applying to properties over $3.5 million. This change significantly increased transfer costs for high-value property sellers.
Yes, certain family transfers are fully exempt from the Realty Transfer Fee. Deeds between spouses, between parents and children (including adopted children), and between grandparents and grandchildren don't require payment of the RTF. Transfers between stepparents and stepchildren are 50% exempt unless the child has been legally adopted. Transfers between siblings, cousins, or other relatives are not exempt.
Several property types are exempt from the Graduated Percent Fee: vacant land, farmland without residential structures, industrial properties (Class 4B), apartment buildings with 5+ units, properties owned by schools or religious organizations, cemetery property, and government-owned real estate. Additionally, transfers to 501(c)(3) nonprofit organizations are exempt.
Yes. Senior citizens age 62 and older who owned and occupied the property as their primary residence qualify for a partial exemption that reduces the Realty Transfer Fee by approximately 50%. The same partial exemption applies to blind or disabled persons who meet the occupancy requirements. To claim this exemption, you must complete Form RTF-1, have it notarized, and provide proof of eligibility.
New Jersey uses a graduated rate structure where different portions of your sale price are taxed at different rates. The New Jersey Division of Taxation and several real estate websites offer online calculators that can help you determine your exact obligation. Alternatively, your closing attorney or real estate agent can calculate the fees for you. For properties over $1 million, remember to include both the base RTF and the Graduated Percent Fee.
Transfer fees are generally not tax-deductible for primary residence sales. However, if you're selling investment or rental property, transfer fees can be deducted as selling expenses, which reduces your capital gain. For all property sales, the fees reduce your net proceeds, which can lower your taxable gain even if you can't deduct the fees directly. Consult a tax professional for guidance specific to your situation.
For properties under $1 million, you'll file Form RTF-1 (Affidavit of Consideration for Use by Seller), which must be notarized and attached to the deed. For properties over $1 million or commercial properties of any value, you'll also need Form RTF-1EE (Affidavit of Consideration for Graduated Percent Fee). If claiming an exemption, additional documentation proving eligibility is required. Your closing attorney typically handles preparation and filing of these forms.
Limited relief exists for Class 4A commercial property sellers whose contracts were fully executed before July 10, 2025, and whose deeds record between July 10 and November 15, 2025. These sellers can file for a refund of amounts paid in excess of the 1% rate within one year of the deed recording date. This provision doesn't apply to residential properties or contracts signed after July 10, 2025.
Technically yes, but this strategy is risky and not recommended. If the actual value is clearly higher and you're underpricing to avoid taxes, it could trigger scrutiny. Additionally, you'd be leaving money on the table that might exceed the tax savings.