The NJ Realty Transfer Fee is a graduated state tax on real property transfers, customarily paid by the seller, with rates ranging from $2.00 to $6.05 per $500 of the sale price, plus a mansion surcharge (1% to 3.5%, applied to the entire sale price based on price tier) paid by the seller on residential sales over “,000,000 (as of July 2025). Partial exemptions are available for senior citizens, disabled persons, and blind persons on the first $150,000 of the sale price.
How the Realty Transfer Fee Is Calculated
The NJ Realty Transfer Fee uses a graduated rate schedule based on the total consideration (sale price) of the property. The fee is calculated in increments of $500 of the sale price. The general rates are as follows: $2.00 per $500 on the first $150,000 of the sale price, $3.35 per $500 on the portion from $150,001 to $200,000, $3.90 per $500 on the portion from $200,001 to $350,000, and $6.05 per $500 on amounts over $350,000.
The Mansion Tax (Now a Graduated Seller Fee)
As of July 10, 2025, the former 1% mansion tax was replaced by a tiered fee on residential sales over $1,000,000, paid by the seller (not the buyer). The new rates, each applied to the entire sale price, are: 1% on sales over $1,000,000 up to $2,000,000; 2% on sales over $2,000,000 up to $2,500,000; 2.5% on sales over $2,500,000 up to $3,000,000; 3% on sales over $3,000,000 up to $3,500,000; and 3.5% on sales over $3,500,000. Each rate applies to the entire sale price, not just the amount above the threshold. This represents a significant change from the prior law, which imposed a flat 1% fee paid by the buyer.
Who Pays
By custom and by statute, the seller pays the general Realty Transfer Fee at closing. The fee is collected by the county recording officer when the deed is presented for recording. The seller also pays the mansion tax fee on residential properties sold for more than $1,000,000 (1% to 3.5%, applied to the entire sale price based on price tier). While these are the standard allocations, the purchase contract can specify a different arrangement — for example, in some negotiations, the buyer may agree to pay a portion of the seller’s transfer fee as a concession.
Exemptions
Senior Citizen, Blind, and Disabled Exemption
Sellers who are 62 years of age or older, blind, or disabled are eligible for a partial exemption from the Realty Transfer Fee. These qualifying sellers pay a reduced rate on the first $150,000 of the sale price. The exemption applies only to the seller’s principal residence and requires the seller to have lived in the property as their primary residence. To claim the exemption, the seller must complete the appropriate affidavit and provide documentation of eligibility at the time of recording.
Full Exemptions
Certain transfers are fully exempt from the Realty Transfer Fee, including transfers between husband and wife or between former spouses pursuant to a divorce, transfers to or from the State of NJ, the United States, or any instrumentality, agency, or authority thereof, transfers by or to a qualified non-profit organization, transfers pursuant to a confirmed Chapter 11 bankruptcy plan, certain transfers in connection with tax-exempt corporate mergers and reorganizations, and transfers where the consideration is $100 or less (nominal consideration deeds). Each exemption has specific requirements that must be met, and the appropriate exemption affidavit must be filed with the deed.
Practical Calculation Example
For a property sold at $500,000, the Realty Transfer Fee paid by the seller would be calculated as follows: $150,000 at $2.00 per $500 = $600.00, $50,000 at $3.35 per $500 = $335.00, $150,000 at $3.90 per $500 = $1,170.00, and $150,000 at $6.05 per $500 = $1,815.00. The total Realty Transfer Fee would be $3,920.00. Your attorney will calculate the exact fee for your transaction and ensure it is properly paid at closing.
Call Friscia & Associates Today
Understanding the NJ Realty Transfer Fee is important for accurate budgeting in any real estate transaction. Call Friscia & Associates at (973) 500-8024 to speak with a NJ real estate attorney who can calculate your transfer tax, identify applicable exemptions, and handle all aspects of your closing.
Legal Disclaimer: The information on this page is for general informational purposes only and does not constitute legal advice. Tax rates and exemptions are subject to legislative change. If you need legal advice, please contact our office to schedule a consultation.