2025 Changes to the Mansion Tax in New Jersey

In New Jersey, effective July 10, 2025, changes have been made regarding the Mansion Tax.  

Prior to July 10, 2025 the seller paid the Realty Transfer Fee (RTF) (approximately 1%) based on the sale price of the property as a prerequisite before the deed could be transferred. This will continue to be in effect.

In addition, if the home sold for over $1 million dollars, the buyer would pay a Mansion Tax of 1% of the sales price.

The Mansion Tax policy has now changed.  As of July 10, 2025, the buyer will no longer be required to pay the Mansion tax. The seller will now pay the mansion tax on a Graduated Percentage Fee (GPF) schedule, which is based on the sale price for both residential and commercial properties.

Here's the breakdown of the 2025 GPF tax, which will now be entirely paid by the seller, based on the sale price of the property as follows:

• $1 million+: The existing 1% "mansion tax" remains, but the responsibility shifts from the buyer to the seller, amending the 2004 law.

• $2 million+: 2% tax on the seller.

• $2.5 million+: 2.5% tax on the seller.

• $3 million+: 3% tax on the seller.

• $3.5 million and above+: 3.5% tax on the seller.

For all contracts fully executed on or after July 10, 2025, where the home has a sales price over $1 million, the GPF will be in full effect.

For all contracts fully executed prior to July 10, 2025, where the deed is recorded on or before November 15, 2025, any graduated percent fees paid in excess of 1% will be refunded to the seller.

Understanding the recent changes to realtor transfer fees and the graduated percentage fee structure in New Jersey is essential for anyone involved in real estate transactions, especially as it concerns higher end residential and commercial properties over $1 million. Staying informed can help buyers and sellers navigate the complexities of these fees and make more informed decisions.

To learn more including RTF/GPF resources such as the GPF Chart, RTF calculator, Department of Treasury Memos and FAQs, please visit NJRealtor.com