New Jersey transfer fees: what changed above $1 million

July 10, 2025 changed the closing-cost calculation for qualifying New Jersey transfers above $1 million. The Graduated Percent Fee became the seller’s statutory responsibility, with rates reaching 3.5%. It sits alongside the ordinary Realty Transfer Fee.

Older descriptions of a flat, buyer-paid 1% “mansion tax” are not the current rule for an ordinary qualifying sale. A contract can also allocate costs between the parties, so statutory responsibility and the negotiated closing statement need to be read together. New Jersey Division of Taxation, current transfer-fee guidance.

The rate applies to the whole consideration

For covered transfers, the additional rate is 1% above $1 million through $2 million; 2% above $2 million through $2.5 million; 2.5% above $2.5 million through $3 million; 3% above $3 million through $3.5 million; and 3.5% above $3.5 million. Each selected rate applies to the total consideration, not only the dollars in the top bracket. The state’s implementation notice sets out the schedule; its current transfer-fee guidance identifies the covered property classes. Graduated Percent Fee notice.

An illustrative qualifying sale at $2.75 million therefore produces a $68,750 Graduated Percent Fee. The ordinary Realty Transfer Fee is additional. That example is a fee calculation, not an estimate of the price of a house in any particular town.

A price change can have an uneven effect

At $2,500,000, the Graduated Percent Fee is $50,000. At $2,500,001, it is $62,500.03 after rounding to cents. The increase applies because the full consideration moves into the 2.5% tier. Compare net proceeds on both sides of the threshold.

That does not mean the lower offer is automatically better. Financing certainty, contingencies, timing and other contract terms still matter. It means the price comparison should include the correct fee rather than a flat percentage inherited from an old worksheet.

The ordinary Realty Transfer Fee has its own schedule and possible exemptions or reductions. Counsel should confirm classification, consideration, eligibility and recording requirements. The Graduated Percent Fee should not be casually extended to every type of New Jersey property.

Put both closings on the same page

A New Jersey owner moving to Manhattan needs a seller’s estimate for the New Jersey property and a separate buyer’s estimate for the apartment. Transfer fees, loan payoff and selling expenses reduce available proceeds. New York purchase taxes, financing expenses and building charges determine the cash required next.

A headline sale price, even with an accepted offer, is only the beginning of that calculation.