New Jersey Realty Transfer Fee: Who Pays, Current Rates, and Exemptions
What Is the New Jersey Realty Transfer Fee (NJ Transfer Tax)?
When selling property in New Jersey, the seller is generally responsible for paying the Realty Transfer Fee (RTF). Many people refer to this charge as the “NJ transfer tax,” although the State officially calls it the Realty Transfer Fee. The fee is collected when the deed is recorded with the county clerk’s office and is usually calculated based on the property’s sale price.
Properties sold for more than $1 million may also be subject to an additional charge called the Graduated Percent Fee, formerly known as the mansion tax. Under legislation that took effect on July 10, 2025, sellers are responsible for this fee as well. It applies to certain residential and commercial property transfers, with rates ranging from 1% to 3.5% of the total sale price.
Not every property transfer is subject to the full Realty Transfer Fee. New Jersey provides exemptions for certain transactions, including qualifying transfers following a divorce. Reduced rates are also available to eligible senior citizens, individuals who are blind or disabled, and certain low- and moderate-income housing transactions. Determining whether an exemption applies before closing can help sellers avoid paying more than they legally owe.
Who Pays the NJ Realty Transfer Fee: The Seller or the Buyer?
In New Jersey, the seller pays both the RTF and, when applicable, the Graduated Percent Fee. The RTF has always been a seller expense. What changed is the additional fee on properties sold for more than $1 million: state law shifted responsibility for that fee from the buyer to the seller.
Before July 10, 2025, buyers had to pay a 1% fee on qualifying property transfers ($1 million or more), commonly referred to as the mansion tax. The seller still paid the standard Realty Transfer Fee.
That changed when New Jersey passed P.L. 2025, c. 69. For deeds filed for recording on or after July 10, 2025, the Graduated Percent Fee became the seller’s statutory responsibility. Higher percentage rates were also introduced for more expensive properties, and the amount owed depends on the total consideration paid.
Although state law holds the seller responsible for both fees, buyers and sellers can agree to different payment arrangements in their real estate contract. Those private agreements do not change who is legally liable under New Jersey law for the fees.
How the NJ Realty Transfer Fee Is Calculated: Current Rate Tables
New Jersey calculates the Realty Transfer Fee on a graduated rate schedule. The fee is charged for every $500 of consideration (or any fractional part thereof). So even if you fall slightly above a $500 increment, you count that portion in calculating the fee.
The rates apply only to the property’s total consideration. New Jersey has one rate schedule for transactions of $350,000 or less and another for transactions over that amount; within each schedule, the rates increase as the consideration moves into higher brackets. Each rate applies only to the portion of the consideration that falls into that bracket, not the entire sale price.
The following tables show the standard rates for real estate transactions and new construction as published by the New Jersey Division of Taxation.
Standard Transactions and New Construction: Total Consideration Not Over $350,000
| Portion of consideration | Rate per $500 |
|---|---|
| Up to $150,000 | $2.00 |
| Over $150,000 up to $200,000 | $3.35 |
| Over $200,000 up to $350,000 | $3.90 |
Standard Transactions and New Construction: Total Consideration Over $350,000
| Portion of consideration | Rate per $500 |
|---|---|
| Up to $150,000 | $2.90 |
| Over $150,000 up to $200,000 | $4.25 |
| Over $200,000 up to $550,000 | $4.80 |
| Over $550,000 up to $850,000 | $5.30 |
| Over $850,000 up to $1,000,000 | $5.80 |
| Over $1,000,000 | $6.05 |
These rates apply to standard transactions without an exemption. Sellers who qualify for a partial exemption may pay reduced rates. The Realty Transfer Fee is also separate from the Graduated Percent Fee imposed on certain property transfers exceeding $1 million.
NJ Realty Transfer Fee Examples by Sale Price
The amount a seller pays in New Jersey Realty Transfer Fees depends on the property’s sale price and whether the transaction is subject to the additional Graduated Percent Fee. The following examples assume a standard real estate transaction with no exemptions or reduced rates.
| Sale price | RTF | Graduated Percent Fee | Total seller fees |
|---|---|---|---|
| $325,000 | $1,910 | None | $1,910 |
| $600,000 | $5,185 | None | $5,185 |
| $1,200,000 | $11,995 | $12,000 | $23,995 |
| $2,750,000 | $30,750 | $68,750 | $99,500 |
One detail that can make a difference in calculating the RTF is the $350,000 threshold. When a property’s total consideration exceeds $350,000, the entire transaction moves to the higher rate schedule. The higher schedule does not apply only to the amount above $350,000.
For example, a property selling for $350,000 falls under the lower rate schedule, resulting in an RTF of $2,105. If that same property sells for $350,001, the higher rate schedule applies, increasing the fee to $2,739.80. This distinction can affect a seller’s closing expenses, particularly when the sale price is close to the threshold.
For properties selling above $1 million, the Graduated Percent Fee adds another expense. As the table shows, these two fees can represent a substantial portion of a seller’s closing costs, making it worthwhile to calculate your NJ Realty Transfer Fee before listing a property or accepting an offer.
NJ Mansion Tax: The Graduated Percent Fee on Sales Over $1 Million
New Jersey imposes an additional charge on certain property sales exceeding $1 million. This charge, commonly called the “mansion tax,” is officially known as the Graduated Percent Fee. It is separate from the standard Realty Transfer Fee (RTF), meaning sellers may be required to pay both fees when transferring ownership.
Under the law that took effect on July 10, 2025, the Graduated Percent Fee is calculated using the following rates:
| Total consideration | Graduated Percent Fee |
|---|---|
| Over $1,000,000 up to $2,000,000 | 1% |
| Over $2,000,000 up to $2,500,000 | 2% |
| Over $2,500,000 up to $3,000,000 | 2.5% |
| Over $3,000,000 up to $3,500,000 | 3% |
| Over $3,500,000 | 3.5% |
Unlike the standard RTF, which applies different rates to portions of the sale price, the Graduated Percent Fee applies a single percentage to the total consideration. For example, a property selling for $2.6 million falls into the 2.5% bracket. The seller would owe $65,000, calculated on the entire $2.6 million rather than only the amount exceeding $2.5 million.
The Graduated Percent Fee does not apply to every property selling for more than $1 million. New Jersey limits it to specific property classifications, including Class 2 residential properties, certain Class 3A farm properties containing a residential structure, Class 4A commercial properties other than industrial or apartment properties, and Class 4C cooperative units. The property’s classification on the municipal tax records helps determine whether the fee applies.
Sellers should also understand that qualifying for a partial exemption from the standard Realty Transfer Fee does not reduce the Graduated Percent Fee. The two charges have different exemption rules, and a reduced RTF rate does not automatically provide relief from the additional fee.
For a closer look at qualifying exemptions, how the rates affect property sales, and ways to prepare for these expenses, read The Bronzino Law Firm’s article, New Jersey Mansion Tax 2025: Complete Guide to the New Graduated Percent Fee.
Partial Exemptions for Senior, Blind, and Disabled Sellers
Not every New Jersey property seller must pay the standard Realty Transfer Fee. The State offers partial exemptions that reduce the amount owed by qualifying senior citizens age 62 or older, blind persons, and disabled persons. Reduced rates also apply to qualifying low- and moderate-income housing transactions.
To qualify for a personal exemption, the seller must be a New Jersey resident who owns and occupies a one- or two-family residential property at the time of sale. The property does not necessarily have to be the seller’s primary residence, but the seller must meet the State’s ownership and occupancy requirements. Owners selling in 55+ communities should confirm these requirements early, since many of them may qualify for the reduced rate.
Ownership arrangements also affect eligibility. When a property is held by joint tenants, all owners must qualify for the exemption. An exception applies to spouses or civil union partners who own their home as tenants by the entirety. In that situation, only one spouse or partner needs to meet the age, blindness, or disability requirement to receive the reduced rate.
The partial exemption uses a separate rate schedule, with the amount determined by the property’s total consideration.
| Total consideration | Portion of consideration | Reduced rate per $500 |
|---|---|---|
| Not over $350,000 | Up to $150,000 | $0.50 |
| Not over $350,000 | Over $150,000 up to $350,000 | $1.25 |
| Over $350,000 | Up to $150,000 | $1.40 |
| Over $350,000 | Over $150,000 up to $550,000 | $2.15 |
| Over $350,000 | Over $550,000 up to $850,000 | $2.65 |
| Over $350,000 | Over $850,000 up to $1,000,000 | $3.15 |
| Over $350,000 | Over $1,000,000 | $3.40 |
The savings can be significant. The New Jersey Division of Taxation provides an example of a qualifying senior citizen selling a home for $280,000. Under the reduced rate schedule, the seller pays $475 in Realty Transfer Fees, compared with $1,559 under the standard schedule. That represents a savings of $1,084.
These personal exemptions belong to the qualifying individual, not simply to the property. Trusts, estates, and other legal entities cannot claim the reduced rate based on a former owner’s age or disability. For example, if a senior citizen transfers a home into a trust and the trust later sells it, the trust cannot claim the senior citizen exemption. Sellers should review how their property is titled before assuming they qualify for a reduced Realty Transfer Fee.
Full Exemptions From the NJ Realty Transfer Fee
Some property transfers in New Jersey are exempt from the RTF entirely. Partial exemptions reduce what a seller pays; a full exemption eliminates the fee when the transfer meets state law requirements.
Several exemptions are relevant to property owners. Transfers for less than $100 qualify; deeds that merely correct or confirm a previously recorded deed without changing the ownership arrangement qualify; deeds executed as part of a property partition may be exempt; and certain transfers to or from federal, state, or local government entities qualify.
These are only a few of the exemptions that New Jersey law permits. The full list is on Form RTF-1 (Affidavit of Consideration for Use by Seller), which documents the details of the property transfer and whether an exemption applies.
To claim a full exemption, the seller must identify which exemption applies on Form RTF-1 and explain why the transfer qualifies; the completed affidavit must be submitted with the deed. You cannot simply state that a transaction is exempt. The supporting information has to show that the transfer meets New Jersey law requirements.
Realty Transfer Fee Exemption for Spouses and Transfers After Divorce
New Jersey has a full Realty Transfer Fee exemption for deeds transferring property between spouses or civil union partners, so married couples can change ownership of their property without paying the RTF. The exemption also applies to transfers between former spouses or civil union partners when the deed is recorded within 90 days after entry of the divorce decree or dissolution of the civil union.
Timing is especially important when one spouse agrees to transfer their interest in the marital home as part of a divorce settlement. New Jersey also exempts deeds executed “in specific performance of a final judgment,” but this does not automatically cover transfers required by a property settlement agreement incorporated into the divorce judgment. The State distinguishes between a judge ordering a transfer as a result of a court ruling and spouses agreeing to transfer ownership as part of their settlement.
The New Jersey Division of Taxation gives an example of a former husband who transferred his one-half interest in a property to his former wife many years after their divorce. He received $8,000 for his interest, and the property carried an existing mortgage originally valued at $200,000. Because the transfer did not qualify for an exemption, the RTF was based on the $8,000 payment plus one-half of the remaining mortgage balance, not just the cash he received.
Couples who want to transfer ownership of their marital home should discuss deed and recording requirements during the divorce process. If they wait too long, they may end up paying a fee that could have been avoided. For more about ownership changes, quitclaim deeds, and other considerations, read The Bronzino Law Firm’s Comprehensive Guide to Transferring Marital Home Ownership in Divorce or our overview of real estate and divorce in New Jersey.
Parent-to-Child Property Transfers and the Realty Transfer Fee
New Jersey provides a full Realty Transfer Fee exemption for property transfers between parents and their children, whether the property is sold or transferred without payment. It applies whether the child is biological or legally adopted, since adoption creates the same parent-child relationship under state law. A transfer between a stepparent and stepchild does not qualify unless the stepparent has legally adopted the child.
The exemption gets more complicated when a parent sells property to a child and another person. The New Jersey Division of Taxation gives an example of a father selling his home to his daughter and her unmarried, live-in partner. Only the daughter’s half of the consideration is exempt; the other half is subject to the Realty Transfer Fee, which is calculated on the full consideration and then reduced by half.
The State treats a similar transaction differently if the purchasers are married. In another Treasury example, parents sell their home to their daughter and son-in-law. The Division treats the entire transfer as exempt from the Realty Transfer Fee because it is a parent-to-child transfer.
These distinctions are important when families transfer property to help children buy a home or change an existing deed. The legal relationships between the parties can determine whether the transaction qualifies for a full exemption, a partial exemption, or no exemption at all.
Realty Transfer Fee on Inherited Property and Trusts
Inheriting property in New Jersey does not automatically trigger the Realty Transfer Fee. If an executor or administrator transfers real estate to a beneficiary named in the deceased owner’s will, the deed is exempt. The same exemption applies when property goes to a legal heir under New Jersey’s intestacy laws when there is no valid will.
The exemption does not apply when the executor sells the property to someone other than the beneficiaries or legal heirs of the decedent. For example, if a parent’s will directs the executor to sell the family home and divide the proceeds among the children, that sale is not exempt; the children receive money from the sale, not the house itself. Learn more about selling a property after the owner’s passing.
Trusts are treated differently from family members transferring property directly to each other. According to the New Jersey Division of Taxation, transferring property into a trust for your children does not qualify for the parent-child exemption. Even though the children are the intended beneficiaries, the property is legally transferred to the trustee, not directly to them. The RTF applies unless another exemption is available.
When the Realty Transfer Fee Is Paid and Required Forms (RTF-1 and RTF-1EE)
The Realty Transfer Fee is paid when the deed is submitted to the county recording office. Payment is a condition for recording a deed that is subject to the fee. In most real estate closings, the attorney or title agent handling the closing collects the amount from the seller, shows it on the settlement statement, and arranges for payment at the time the deed is recorded.
Some forms must accompany the deed depending on the type of transaction. Sellers claiming a full or partial exemption complete Form RTF-1 (Affidavit of Consideration for Use by Seller). This form identifies who is claiming the exemption and must be recorded with the deed. Form RTF-1EE (Affidavit of Consideration for Graduated Percent Fee) must be attached to every deed where the consideration exceeds $1 million, even if the transaction qualifies for an exemption. The State also requires this form for commercial property transfers.
Accuracy is required when completing these documents. N.J.S.A. 46:15-9 makes it a crime of the fourth degree to knowingly falsify the consideration stated in a deed or affidavit, or to make a false declaration that a transfer is exempt from the fee. Sellers should ensure the reported consideration reflects the true value of the transaction and that any exemption claimed is supported by the facts.
NJ Exit Tax and Other Seller Closing Costs vs. the Realty Transfer Fee
The Realty Transfer Fee is not the only cost New Jersey homeowners may incur when selling property. One charge that often confuses sellers is the New Jersey exit tax (also called the GIT/REP estimated income tax payment). Unlike the RTF, the exit tax is not a fee for transferring ownership. It is a prepayment of New Jersey Gross Income Tax that generally applies to nonresident sellers.
Nonresident sellers who do not qualify for an exemption or waiver generally pay the greater of 10.75% of the taxable gain or 2% of the sale price. This amount is credited against their actual New Jersey income tax liability, and any overpayment may be refundable. For more information, see The Bronzino Law Firm’s New Jersey Exit Tax Guide or use the firm’s NJ Exit Tax Calculator to estimate what you will owe at closing.
Sellers should also consider expenses such as realtor commissions, attorney fees, mortgage payoff charges, recording fees, and property tax adjustments, which are separate from the RTF. These costs are not included in the Realty Transfer Fee and can affect how much money the seller receives when the transaction is complete. For more details, see The Bronzino Law Firm’s Closing Fees Involved When Selling a Home in New Jersey article.
Estimate Your NJ Realty Transfer Fee With Our Calculator
Knowing how much you may owe in Realty Transfer Fees can help you plan for closing costs if you sell your New Jersey property. Use our NJ Realty Transfer Tax Calculator to estimate the fee based on your property’s sale price and see how much money you might need to set aside.
The calculator provides an estimate, not a final figure. The amount owed depends on the consideration stated in the deed, the details of the transaction, and any exemptions or reduced rates that apply. Our real estate attorneys can review all of these factors and tell you what you owe before closing.
Speak With a New Jersey Real Estate Attorney About Transfer Fees
How much you owe in New Jersey Realty Transfer Fees depends on the details of your property transaction. The sale price, ownership arrangement, and circumstances surrounding the transfer can all influence how the fee is calculated. Some transactions qualify for reduced rates or full exemptions, but eligibility must be evaluated case by case.
The Bronzino Law Firm helps buyers and sellers in Monmouth and Ocean Counties understand their obligations and prepare for closing. Our New Jersey real estate attorneys can review your transaction to determine whether an exemption applies and help you avoid unexpected expenses.
If you are planning to sell or transfer property in New Jersey, call The Bronzino Law Firm at (732) 812-3102 or contact our Manasquan office online to schedule a consultation. We are located at 1707 Atlantic Avenue, Building 2, Suite 2, Manasquan, NJ 08736.
