GUIDE
NJ mansion tax and realty transfer fee
General information on New Jersey’s Realty Transfer Fee and the Graduated Percent Fee on certain transfers over $1,000,000.
Two fees, published by the state
The New Jersey Division of Taxation says the state imposes a Realty Transfer Fee on the seller of real property when a deed is recorded. The fee is calculated from the consideration in the deed, unless an exemption applies. An Affidavit of Consideration, Form RTF-1, is used when a full or partial exemption is claimed. The Division’s page is the schedule to read. This site does not restate every bracket.
People still call the extra charge on some expensive sales the mansion tax. Since P.L. 2025, c. 69, the Division describes it as a Graduated Percent Fee, a supplement to the Realty Transfer Fee, when consideration is more than $1,000,000. The Division says the seller is statutorily responsible, and that the parties may negotiate who pays.
The rates, and the classes they do not cover
The Division of Taxation lists the Graduated Percent Fee as 1% of total consideration if over $1,000,000 but not over $2,000,000; 2% if over $2,000,000 but not over $2,500,000; 2.5% if over $2,500,000 but not over $3,000,000; 3% if over $3,000,000 but not over $3,500,000; and 3.5% if over $3,500,000. Those percentages are the Division’s published description and can change. Read the current page.
The same page limits the supplemental fee to listed property classes. They include Class 2 residential property of one to four units, certain farm property, Class 4A commercial property other than industrial or apartments, and Class 4C cooperative units. A warehouse or an apartment building may fall outside that list. Check the municipal tax list or the assessor. Form RTF-1EE covers exemption claims. This is not tax advice, and we do not file the affidavit.