In New Jersey, the "Mansion Tax", officially known as the Real Estate Transfer Tax, is shifting from buyers to sellers for properties valued at $1 million or more. This change took effect on July 10, 2025. Additionally, tax rates will increase for higher-priced properties.

Here’s a breakdown of the changes:

Shift in Tax Burden:
The 1% tax previously paid by buyers on properties over $1 million will now be paid by sellers.

Increased Rates:
For properties with a sale price exceeding $2 million, the tax rate will increase incrementally as follows:

  • 2% for properties between $2 million and $2.5 million
  • 2.5% for properties between $2.5 million and $3 million
  • 3% for properties between $3 million and $3.5 million
  • 3.5% for properties over $3.5 million



Effective Date:

These changes are effective for transactions closing on or after July 10, 2025.

Read More HERE.