By Slava Zborovsky · Updated
Since July 10, 2025, the seller pays New Jersey's Graduated Percent Fee, the replacement for the buyer-paid 1% mansion tax: 1% of the entire price on sales over $1 million, rising to 3.5% over $3.5 million, on top of the Realty Transfer Fee.
What changed
Under P.L.2025, c.69, enacted June 30, 2025 and effective for deeds recorded on or after July 10, 2025, the liability for the fee on high-value sales moved from the buyer to the seller, and the single 1% rate became a graduated one.
The rate is not marginal. It applies to the whole price once the price crosses each threshold, so a $2.1 million sale pays 2% on all $2.1 million, not 2% on the last $100,000.
- Over $1 million up to $2 million: 1%
- Over $2 million up to $2.5 million: 2%
- Over $2.5 million up to $3 million: 2.5%
- Over $3 million up to $3.5 million: 3%
- Over $3.5 million: 3.5%
What it costs at typical values in these towns
At each town's typical home value (Zillow Home Value Index, August 2026), here is what a seller pays in state transfer costs, before commission and attorney fees:
- Alpine: $3,262,000 typical value, $97,860 graduated fee plus $36,945 transfer fee, $134,805 total
- Saddle River: $2,432,000 typical value, $48,640 graduated fee plus $26,902 transfer fee, $75,542 total
- Franklin Lakes: $1,643,000 typical value, $16,430 graduated fee plus $17,355 transfer fee, $33,785 total
- Upper Saddle River: $1,460,000 typical value, $14,600 graduated fee plus $15,141 transfer fee, $29,741 total
- Ho-Ho-Kus: $1,363,000 typical value, $13,630 graduated fee plus $13,967 transfer fee, $27,597 total
- Tenafly: $1,330,000 typical value, $13,300 graduated fee plus $13,568 transfer fee, $26,868 total
- Woodcliff Lake: $1,281,000 typical value, $12,810 graduated fee plus $12,975 transfer fee, $25,785 total
- Ridgewood: $1,269,000 typical value, $12,690 graduated fee plus $12,830 transfer fee, $25,520 total
- Old Tappan: $1,249,000 typical value, $12,490 graduated fee plus $12,588 transfer fee, $25,078 total
- Wyckoff: $1,174,000 typical value, $11,740 graduated fee plus $11,680 transfer fee, $23,420 total
- Allendale: $1,126,000 typical value, $11,260 graduated fee plus $11,100 transfer fee, $22,360 total
What sellers should do about it
Price with the fee in mind. Near a threshold, a few thousand dollars of price can change the fee by tens of thousands: at $2,000,000 the fee is 1% ($20,000); at $2,000,001 it is 2% of the whole price ($40,000).
Run your own number on the closing-cost calculator, and talk to your attorney before you sign a listing agreement.
Selling soon? Get a written valuation or use the NJ closing-cost calculator.
- Does the buyer still pay the mansion tax in New Jersey?
- No. For transfers on or after July 10, 2025, the seller pays the Graduated Percent Fee (P.L.2025, c.69), which replaced the buyer-paid 1% mansion tax.
- What are the NJ mansion tax rates?
- 1% of the whole price over $1 million, 2% over $2 million, 2.5% over $2.5 million, 3% over $3 million and 3.5% over $3.5 million, paid by the seller on top of the Realty Transfer Fee. The mansion tax calculator works out both at any price.
- Which properties does the NJ mansion tax apply to?
- Class 2 residential property, farm property that includes a residence, cooperative units and Class 4A commercial property, when the price is over $1 million (P.L.2025, c.69).
- Is the NJ graduated fee charged on the whole price?
- Yes. The rate applies to the entire consideration once the price exceeds each threshold, not only to the portion above it.
Sources
Written by Slava Zborovsky, Broker Associate with The Agency One Rock and a licensed New Jersey broker since 2007. About Slava · LinkedIn
