Selling over $1 million in New Jersey
NJ mansion tax calculator
Since July 10, 2025 the seller pays it: 1% to 3.5% of the whole price.
New Jersey’s mansion tax is now a seller cost. On any sale over $1 million, the seller pays a Graduated Percent Fee of 1% to 3.5% of the entire price when the deed is recorded, on top of the Realty Transfer Fee. Enter a price to see both.
- Realty Transfer FeeStandard rates, per $500 of price
- $24,700
- Mansion tax (Graduated Percent Fee)2% of the full price
- $45,000
- Paid by the seller at closing
- $69,700
Mansion tax by sale price
- $1,000,000 or lessNone
- $1,000,001 to $2,000,0001% of the full price
- $2,000,001 to $2,500,0002% of the full price
- $2,500,001 to $3,000,0002.5% of the full price
- $3,000,001 to $3,500,0003% of the full price
- Over $3,500,0003.5% of the full price
Homes of 1 to 4 units, co-ops, farms with a house, and commercial property other than industrial or apartment buildings. Not charged when the buyer is a 501(c)(3) nonprofit. Buyer and seller may agree in the contract to share it.
What sellers pay at common prices
Sale priceSeller pays
$1,500,000$30,625
Mansion tax $15,000 (1%) · Transfer fee $15,625
$2,000,000$41,675
Mansion tax $20,000 (1%) · Transfer fee $21,675
$2,000,001$61,681
Mansion tax $40,000 (2%) · Transfer fee $21,681
$2,750,000$99,500
Mansion tax $68,750 (2.5%) · Transfer fee $30,750
$3,250,000$134,300
Mansion tax $97,500 (3%) · Transfer fee $36,800
$4,000,000$185,875
Mansion tax $140,000 (3.5%) · Transfer fee $45,875
Residential property at standard Realty Transfer Fee rates.
The rates
- $1,000,001 to $2,000,0001%
- $2,000,001 to $2,500,0002%
- $2,500,001 to $3,000,0002.5%
- $3,000,001 to $3,500,0003%
- Over $3,500,0003.5%
The percentage applies to the whole price, not just the amount over the threshold. The Division of Taxation’s own example: a $2.75 million deed owes 2.5% of $2.75 million, $68,750.
The cliff
Because the rate covers the whole price, crossing a threshold by one dollar raises the fee on every dollar. A $2,000,000 sale owes $20,000; a $2,000,001 sale owes $40,000. Just above each threshold the seller can keep less than at the threshold itself, which is worth knowing when a listing is priced and when offers come in. The calculator flags it.
Pricing a home near $2 million, $2.5 million, $3 million or $3.5 million? Talk to Slava before you set the number.
What changed in 2025
Until July 9, 2025 the mansion tax was a flat 1% on sales over $1 million, paid by the buyer. P.L.2025, c.69, enacted June 30, 2025, made it a graduated fee and moved it to the seller for deeds submitted for recording on or after July 10, 2025. The date the deed reaches the county recording office decides which rules apply.
What it applies to
Property the town classes as residential (1 to 4 units), co-op units, farms with a house on them, and commercial property other than industrial or apartment buildings. It is not charged on industrial or apartment-building sales, or when the buyer is a 501(c)(3) nonprofit. Other exemptions are listed on Form RTF-1EE, which goes with every deed over $1 million.
NJ mansion tax questions
- Who pays the mansion tax in New Jersey?
- The seller. Since July 10, 2025, New Jersey's mansion tax is the Graduated Percent Fee under P.L.2025, c.69, and the law puts it on the seller (grantor). Before that it was a 1% fee paid by the buyer. Buyer and seller can still agree in the contract to share it; the State only requires that it is paid when the deed is recorded.
- How much is the mansion tax in NJ?
- On sales over $1 million: 1% of the price up to $2 million, 2% over $2 million to $2.5 million, 2.5% over $2.5 million to $3 million, 3% over $3 million to $3.5 million, and 3.5% over $3.5 million. The rate applies to the entire price, not just the part above the threshold. A $2.75 million sale owes 2.5% of $2.75 million, $68,750.
- Is there a mansion tax on a $1 million house in New Jersey?
- No. The fee applies only when the price is more than $1,000,000. At exactly $1,000,000 there is no mansion tax; the seller still pays the Realty Transfer Fee, about $9,575 at standard rates.
- What property does the NJ mansion tax apply to?
- Deeds for property the town classes as residential (1 to 4 units), co-op units, farms with a house on them, and commercial property other than industrial or apartment buildings. It is not charged on industrial or apartment-building sales, and not when the buyer is a 501(c)(3) nonprofit.
- When is the mansion tax paid?
- At closing, when the deed is submitted to the county recording office. The deed is not recorded until the fee is paid. Claims for a refund must be filed within 90 days of paying it.
Sources: NJ Division of Taxation, Realty Transfer Fee, Graduated Percent Fee memorandum (July 2, 2025), implementation memorandum (July 9, 2025) and Graduated Percent Fee exemptions. An estimate, not tax or legal advice; your attorney confirms the figures at closing. See also everything it costs to sell in NJ.
