NJ Realty Transfer Tax Update: What Homeowners Need to Know
If you’re a homeowner in Northern New Jersey—or thinking about becoming one—there’s a major change in state law you need to know about. Governor Phil Murphy recently signed a new $58.8 billion budget into law, and tucked within that budget are significant updates to the state’s Realty Transfer Tax and Mansion Tax that will impact sellers of high-value homes.
Here's a breakdown of what’s changing, how it could affect you, and what to do next.
What Is the Realty Transfer Fee?
The Realty Transfer Fee (RTF) is a tax that’s been in place since 1968. It applies to most real estate transactions over $100 and is paid by the seller when the deed is transferred. This fee remains unchanged in the new law.
What has changed is the Mansion Tax—a supplemental tax originally introduced in 2004. Historically, this was a 1% fee paid by buyers on properties sold for over $1 million.
What’s Changing Starting July 10, 2025?
The Mansion Tax has been restructured, shifting responsibility from buyer to seller and creating new tax brackets for higher-value homes:
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$1M–$2M: 1% tax paid by the seller (used to be the buyer’s responsibility)
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$2M–$2.5M: 2% tax on the seller
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$2.5M–$3M: 2.5% tax
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$3M–$3.5M: 3% tax
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$3.5M+: 3.5% tax
💡 Example: Selling a $4 million home now comes with a $140,000 transfer tax—just from this law alone.
When Does This Go Into Effect?
These changes take effect on July 10, 2025. However, there’s a grace period that could save sellers significant money:
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If your contract is signed before July 10 and you close before November 15, you may be eligible for a refund from the state.
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If your deed is transferred before July 10, the new rates won’t apply at all.
This window gives sellers a chance to act quickly before the higher tax burden hits.
Why This Matters for Northern NJ Homeowners
In markets like Fort Lee, Leonia, Tenafly, Edgewater, and other parts of Bergen and Hudson County, homes valued at $1 million and up are not uncommon. This isn’t just a “luxury property” issue anymore—it’s one that could impact a large number of average sellers.
Buyers may use this as a negotiation tactic, and sellers need to be strategic about pricing, marketing, and timing. The change will also likely affect buyer behavior, appraisal approaches, and even how homes are staged and presented.
What Should You Do Now?
If you're a homeowner thinking of selling in the next 6–12 months, the time to evaluate your strategy is now. I can walk you through a personalized market analysis, help calculate your net proceeds, and recommend the best timeline for your goals.
If you’re a buyer, this could also mean negotiating power in certain scenarios—another reason to stay informed.
Final Thoughts & Professional Disclaimer
These changes may have different implications depending on your personal financial or legal situation. I strongly recommend that you consult with a qualified accountant or attorney to understand exactly how the law applies to your unique case.
If you want help understanding what this means for your real estate plans, I offer free personalized consultations. Let’s talk about your numbers, your timing, and your goals.
📞 Call or text me at 201-970-3960
🌐 Or visit SelleckSellsNJ.com to schedule a private session.
Until next time, stay informed, stay empowered—and remember, I’m here to help you every step of the way.
—Scott Selleck, KW City Views Realty
