The New Jersey transfer tax, formally the Realty Transfer Fee, is a state charge the seller pays when a deed is recorded, calculated on a graduated per-$500 schedule based on the sale price. Sales above $1 million carry an added Graduated Percent Fee of 1% to 3.5% of the full price. Since July 10, 2025, the seller is legally responsible for every component of the fee.
Who Pays the Fee
The standard RTF has always been the seller’s obligation. Under N.J.S.A. 46:15-7, the grantor pays it to the county recording officer when the deed is submitted for recording.1Justia. New Jersey Code 46:15-7 – Realty Transfer Fees
Before July 2025, the added 1% fee on sales above $1 million (the “Mansion Tax”) was the buyer’s. P.L. 2025, c.69 replaced that flat 1% with a Graduated Percent Fee and moved the obligation to the seller. For any deed recorded on or after July 10, 2025, the seller is liable for both the standard RTF and the Graduated Percent Fee.2New Jersey Department of the Treasury. Division of Taxation – Clarification on Graduated Percent Fee Implementation Buyers and sellers can privately agree to allocate the cost differently in their contract, but the statute puts legal liability on the seller.
Standard Rate Schedule
The standard RTF is graduated in brackets, but with a twist most people miss: when the sale price passes $350,000, the entire rate schedule shifts upward. The lower brackets don’t stay put; they get more expensive too.
Sales of $350,000 or Less
- First $150,000: $2.00 per $500
- $150,001 to $200,000: $3.35 per $500
- $200,001 to $350,000: $3.90 per $500
A $325,000 sale, for example, produces a fee of $1,910.3New Jersey Division of Taxation. Realty Transfer Fees (RTF) Frequently Asked Questions
Sales Above $350,000
Once the price crosses $350,000, every bracket resets:4New Jersey Division of Taxation. NJ Division of Taxation – Property Sale Realty Transfer Fee
- First $150,000: $2.90 per $500
- $150,001 to $200,000: $4.25 per $500
- $200,001 to $550,000: $4.80 per $500
- $550,001 to $850,000: $5.30 per $500
- $850,001 to $1,000,000: $5.80 per $500
- Above $1,000,000: $6.05 per $500
A house selling at $351,000 will incur noticeably more in transfer fees than one at $349,000, because the whole bracket structure changes. That threshold matters if you’re negotiating a price in that range.
How the Calculation Works
Each bracket’s rate applies only to the slice of the price falling within it. Here’s a $500,000 sale worked through:
- First $150,000: 300 units × $2.90 = $870
- $150,001 to $200,000: 100 units × $4.25 = $425
- $200,001 to $500,000: 600 units × $4.80 = $2,880
Standard RTF: $4,175. If the price doesn’t divide evenly by $500, round up to the next $500 before applying the rates.3New Jersey Division of Taxation. Realty Transfer Fees (RTF) Frequently Asked Questions
The Graduated Percent Fee on Sales Over $1 Million
Sales above $1 million trigger a second charge on top of the standard RTF. The Graduated Percent Fee replaced the old flat 1% Mansion Tax on July 10, 2025, and applies to residential property, farm property with a residence, cooperative units, and commercial property. It’s calculated on the full sale price, not just the amount above $1 million:5New Jersey Legislature. P.L. 2025, c.069 (A5804)
- $1,000,001 to $2,000,000: 1% of the entire price
- $2,000,001 to $2,500,000: 2%
- $2,500,001 to $3,000,000: 2.5%
- $3,000,001 to $3,500,000: 3%
- Above $3,500,000: 3.5%
This fee is not marginal. A $2,100,000 sale pays 2% on the whole $2,100,000, which is $42,000 in Graduated Percent Fee alone, before the standard RTF. A seller at $1,500,000 pays $15,000 in Graduated Percent Fee plus roughly $7,800 in standard RTF, for a combined transfer fee near $22,800.6New Jersey Department of the Treasury. Division of Taxation – Graduated Percent Fee Notice For sellers around the $1 million mark, this is now the single largest closing cost.
Partial Exemptions for Qualifying Sellers
Certain sellers pay a substantially reduced schedule under N.J.S.A. 46:15-10.1: senior citizens aged 62 or older, blind individuals, and disabled individuals selling a one- or two-family home they own and occupy as their primary residence. Sales of low and moderate income housing also use the reduced rates.3New Jersey Division of Taxation. Realty Transfer Fees (RTF) Frequently Asked Questions
For sales of $350,000 or less:4New Jersey Division of Taxation. NJ Division of Taxation – Property Sale Realty Transfer Fee
- First $150,000: $0.50 per $500 (versus $2.00 standard)
- $150,001 to $350,000: $1.25 per $500
For sales above $350,000, reduced rates range from $1.40 per $500 on the first $150,000 up to $3.40 per $500 on amounts above $1 million. A qualifying senior selling for $300,000 pays roughly $450 instead of about $990 under the standard schedule.7Justia. New Jersey Code 46:15-10.1 – Partial Fee Exemptions
One catch on jointly owned property: if any co-owner does not qualify, the partial exemption is lost. The exception is a husband and wife where only one spouse qualifies.
Full Exemptions From the Fee
N.J.S.A. 46:15-10 lists the transfers that are fully exempt. The most common:8Justia. New Jersey Code 46:15-10 – Exemptions
- Consideration under $100, typically nominal-value family transfers.
- Transfers between spouses or between parent and child, regardless of value.
- Divorce-related deeds recorded within 90 days of the divorce decree.
- Deeds to or from the United States, the State of New Jersey, or their agencies and subdivisions.
- Deeds given only as security for a debt, such as a mortgage.
- Transfers from an executor or administrator to an heir or devisee.
- Deeds by a receiver, trustee in bankruptcy, or assignee for the benefit of creditors.
- Correction or confirmation deeds that fix errors in a prior recorded deed.
- Intercompany transfers between members of a combined group under New Jersey corporate tax law.
Transfers under a confirmed Chapter 11 reorganization plan are also exempt by federal law under 11 U.S.C. § 1146(a), which preempts any state or local stamp tax on the transfer instrument.9Office of the Law Revision Counsel. 11 U.S. Code 1146 – Special Tax Provisions
Transfers to nonprofit organizations are not automatically exempt, despite what some closing guides suggest. A nonprofit transfer qualifies only if it fits one of the statutory categories above.
Forms and Payment at Recording
Form RTF-1 (Affidavit of Consideration for Use by Seller) must be attached to the deed when the deed does not state the full consideration, when the seller claims a total or partial exemption, when the property is commercial or industrial (Class 4), or when the sale involves new construction.10New Jersey Department of the Treasury. RTF-1 – Affidavit of Consideration for Use by Seller A standard residential deed that recites the full price and claims no exemption does not need one.
Form RTF-1EE (Affidavit of Consideration for Graduated Percent Fee) must be attached to any deed where consideration exceeds $1 million and to every commercial property transfer, regardless of price.4New Jersey Division of Taxation. NJ Division of Taxation – Property Sale Realty Transfer Fee Sellers claiming exemption from the Graduated Percent Fee identify the basis on this form.
Deed, affidavits, and payment go together to the county clerk or register of deeds in the county where the property sits. The clerk checks the consideration on the deed against the affidavits and calculates the fee. Payment is usually made by attorney trust account check or certified bank check. If the fee paid comes up short, the deed is still valid and title is unaffected, but the seller remains personally liable for the balance.11New Jersey Legislature. P.L. 2008, c.31 Misstating consideration to reduce the fee can trigger penalties and interest.
Other Closing Charges to Know About
Two obligations sit outside the RTF but hit the same closing table, and it’s easy to confuse them with the transfer fee.
If the seller is a foreign person or entity, the buyer must withhold 15% of the amount realized under FIRPTA and remit it to the IRS within 20 days of closing. A reduced 10% rate can apply where the buyer will use the property as a residence and the price is $1 million or less.12Internal Revenue Service. FIRPTA Withholding This is federal, separate from the RTF; a foreign seller owes both.
When the transaction is a bulk sale of business assets that includes real property, the buyer must file Form C-9600 with the New Jersey Division of Taxation at least 10 business days before closing. If the buyer skips this step or closes early, the buyer becomes personally liable for the seller’s outstanding state taxes, which can include sales tax, income tax, and payroll taxes.13New Jersey Division of Taxation. Bulk Sales Frequently Asked Questions Private escrow between buyer and seller does not substitute for the notice; only the Division can direct the escrow amount.