New Jersey imposes a state "Realty Transfer Fee" (RTF) — not called a "transfer tax" in name, but functionally equivalent — on every deed recorded for a property sale. It is a graduated fee based on consideration (sale price), calculated in $500 increments, with marginal rates from about $2.00 to $6.05 per $500 depending on the price tier (roughly $2.00/$500 on the first $150,000, $3.35/$500 from $150,001-$200,000, $3.90/$500 from $200,001-$350,000, and $6.05/$500 above $350,000) — this works out to roughly 0.4%-1.2%+ effective rate depending on price, with higher-value sales landing closer to ~1%. Seniors (62+), blind, and disabled sellers get a reduced rate on qualifying owner-occupied homes. On top of the base RTF, NJ has a "Graduated Percent Fee" (formerly popularly called the "Mansion Tax") that applies to residential transfers with consideration over $1,000,000: 1% if $1M-$2M, 2% if $2M-$2.5M, 2.5% if $2.5M-$3M, 3% if $3M-$3.5M, and 3.5% above $3.5M — these rates apply to the ENTIRE consideration once the threshold tier is hit (not a true marginal/graduated calculation), and there is no senior exemption on this portion. Effective July 10, 2025, responsibility for the Graduated Percent Fee shifted from the buyer to the seller (previously buyers paid a flat 1% "mansion tax" on sales over $1M). A grace period allowed the old 1% buyer-paid rate for contracts signed before July 10, 2025 if the deed recorded by November 15, 2025. As of 2026, the seller now pays both the base RTF and the Graduated Percent Fee.
Buyers: roughly 1.7%-3% of purchase price typically (some sources cite up to 2%-5% including all fees, points, prepaids, and inspections). Sellers: roughly 8%-10% of sale price when realtor commissions (~5.2% average in NJ) are combined with the state Realty Transfer Fee/Graduated Percent Fee, attorney fees, and other seller-side costs; excluding commission, seller-side closing costs alone run approximately 2%-3.2% of sale price.
Who typically pays: By New Jersey statute and universal local convention, the SELLER pays the Realty Transfer Fee (RTF) at closing — it is collected when the deed is recorded. As of July 10, 2025, the seller also pays the Graduated Percent Fee (the tiered "mansion tax" replacement) on residential sales over $1,000,000; this responsibility was shifted from buyers to sellers by the 2025 law change. Buyers typically cover their own costs: mortgage-related fees, title insurance (owner's policy sometimes negotiated), recording fees for the mortgage, appraisal, inspection, and attorney fees. As always in real estate, contract negotiation can shift customary allocations (e.g., seller concessions), but the statutory default and near-universal practice is seller-pays-RTF/GPF.
No meaningful county- or city-level transfer tax variation exists in New Jersey — the RTF and Graduated Percent Fee are set at the state level and apply uniformly across all 21 counties and all municipalities (no known Jersey City/Hoboken/Newark-specific surtaxes were found in sources). Some counties may add minor administrative recording fees, but these are not transfer taxes per se. The biggest and most current development for 2026 is the July 10, 2025 law that (a) increased mansion-tax-tier rates up to 3.5% for the priciest homes and (b) shifted the entire Graduated Percent Fee obligation from buyer to seller — this is a major, well-documented change from the pre-2025 regime where buyers paid a flat 1% on sales over $1M. Sources cross-checked: NJ Division of Taxation (nj.gov/treasury/taxation), NJ Realtors (njrealtor.com), and multiple law firm/closing-cost guides (Kulzer & DiPadova, Curbelo Law, Bressler Amery & Ross, ListWithClever, Matus Law) all corroborate the same rate structure and payer shift.
Facts on this page reflect research current as of 2026-07-05. Programs, rates, and laws change — confirm current figures with the relevant state agency before relying on them.