The rates
| Sale price | Fee (on the entire price) |
|---|---|
| $1,000,001 – $2,000,000 | 1% |
| $2,000,001 – $2,500,000 | 2% |
| $2,500,001 – $3,000,000 | 2.5% |
| $3,000,001 – $3,500,000 | 3% |
| Over $3,500,000 | 3.5% |
Source: NJ Division of Taxation, Graduated Percent Fee notice (July 2, 2025) and Realty Transfer Fee page.
It’s a cliff, not a bracket
The rate applies to the entire price, not just the part above each threshold. The Division’s own example: a $2.75 million sale owes 2.5% × $2.75 million = $68,750, on top of the regular transfer fee. That makes pricing around the thresholds (like $2,000,000 vs. $2,010,000) worth a careful look.
Which properties
It applies to Class 2 residential (1–4 units), certain Class 3A farm properties with a residence, Class 4A commercial (other than industrial or apartments) and Class 4C cooperative units, with specific exemptions listed on Form RTF-1EE.
Planning
Talk with your attorney about pricing, the contract and credits. The seller net sheet includes the fee automatically.
Questions, answered
Does the buyer or seller pay the NJ mansion tax in 2026?
The seller is legally responsible for the Graduated Percent Fee on deeds submitted on or after July 10, 2025. The parties can still negotiate who bears the cost.
General information, not legal, tax or lending advice. Rules change; confirm with your attorney, tax professional or lender.