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Disclaimer: Estimates are meant to be illustrative and used for reference purposes only. No representation, guarantee or warranty of any kind is made regarding the completeness or accuracy of information provided. No legal, tax, financial or accounting advice provided.

New Jersey’s Mansion Tax is an extra transfer fee layered on top of the ordinary Realty Transfer Fee whenever a deed—or a controlling stake in an entity that owns real estate—records for more than $1 million. Starting 10 July 2025, the charge scales with the entire sale price instead of sitting at a flat 1 percent: 1 % on $1 M–$2 M, 2 % on $2 M–$2.5 M, 2.5 % on $2.5 M–$3 M, 3 % on $3 M–$3.5 M, and 3.5 % above $3.5 M, matching the same tiers for the Controlling-Interest Transfer Tax.

The New Jersey Mansion Tax has been updated as follows:

• Sales over $1 million but not more than $2 million: 1%

• Sales over $2 million but not more than $2.5 million: 2%

• Sales over $2.5 million but not more than $3 million: 2.5%

• Sales over $3 million but not more than $3.5 million: 3%

• Sales over $3.5 million: 3.5%

For any deed submitted for recording on or after 10 July 2025 the seller (grantor) must pay the Mansion Tax at closing; the buyer’s 1 % obligation that existed under the 2004 law is eliminated, though parties are free to re-allocate the cost by contract.

The 2025 budget law (A-5804/S-4666) both shifts the liability from buyer to seller and replaces the single 1 % levy with the graduated schedule above, while also applying the same percentages to controlling-interest transfers; sellers who went under contract before 10 July 2025 but record by 15 Nov 2025 can apply for a refund of any Mansion Tax they pay above 1 %.

The new rules apply to any deed (or entity-interest document) presented for recording on or after 10 July 2025, not the contract date; transactions recorded earlier follow the old regimen, and those recorded by 15 Nov 2025 under pre-July-10 contracts may qualify for a refund of the excess charge.

Separate from the Mansion Tax, the RTF is a long-standing seller-paid state fee that starts at $2 per $500 of consideration and rises to about $4 per $500 on higher tiers, with discounts for seniors, the blind or disabled, and low- and moderate-income housing; it still applies to every deed, even those below $1 million or exempt from the supplemental tax. Use our NJ Realty Transfer Fee (RTF) & Mansion Tax Calculator to determine what you’ll owe for both taxes.

Most buyers should budget roughly 2 %–5 % of the purchase price for loan-origination points, appraisal, credit checks, title search and insurance, survey, lender and owner’s policies, attorney fees, prepaid taxes and insurance, and county recording charges, with the exact mix driven by loan type and local practice. Buyers can mitigate their closing costs with a Hauseit® Buyer Closing Credit, which can help them save up to 2% or more.

Sellers typically shoulder 8 %–10 % of the sale price once you add the listing-agent and buyer-agent commissions (often 5 %–6 % combined), the Realty Transfer Fee, the new graduated Mansion Tax where applicable, attorney and wire fees, HOA or payoff charges, and any negotiated concessions or repairs—costs that come directly out of the seller’s proceeds at the closing table. Sellers can reduce their closing costs with Hauseit® Agent Assisted FSBO or 1% Full Service.