NJ Realty Transfer Fee and Mansion Tax: Who Pays What (After July 2025)

If you hear “mansion tax,” most people assume it is a buyer problem. In New Jersey, that changed. There are two separate things to know:

1) NJ Realty Transfer Fee (RTF) - the standard transfer fee

This is the fee tied to recording the deed, and it is generally paid by the seller. It is calculated using a state rate schedule (based on the sale price), and some transfers can be exempt.

2) NJ “Mansion Tax” - now called the Graduated Percent Fee (GPF)

As of July 10, 2025, the old 1% “mansion tax” that buyers used to pay was replaced with a seller-paid Graduated Percent Fee on sales over $1,000,000.
Important detail: the percentage applies to the total sale price, not just the amount above the threshold.

GPF price bands (seller-paid)

• $1,000,000.01 to $2,000,000: 1% of total consideration

• $2,000,000.01 to $2,500,000: 2%

• $2,500,000.01 to $3,000,000: 2.5%

• $3,000,000.01 to $3,500,000: 3%

• $3,500,000+: 3.5%

“So who pays what?” quick answer

• Under $1M: Seller usually pays RTF only.

• Over $1M: Seller usually pays RTF + GPF.

Two quick examples (Bergen County pricing feels)

• $1,300,000 sale: GPF is 1% of $1,300,000 = $13,000 (seller-paid).

• $2,020,000 sale: GPF is 2% of $2,020,000 = $40,400 (seller-paid).
  That second example is why people “panic” at the term mansion tax: crossing a tier can materially change net proceeds.

The practical takeaway for sellers

If you are pricing near a tier (especially around $2M, $2.5M, $3M), this is a net-proceeds conversation, not just a list-price conversation. I work closely with attorneys and title to make sure the fee structure is clear early, so you are not surprised at closing.