For Sellers
Effective on July 10, 2025, in addition to the ‘Realty Transfer Fee’ (RTF), the sellers are now obligated to pay the new ‘Graduated Percent Fee’ (GPF) on all residential property sales above $1 million. See applicable property classifications below. The new GPF fee, previously known as the ‘Mansion Tax’ that was paid by the buyer, is now the responsibility of the seller. This fee has increased from 1% to up to 3.5% depending on the sale price of all properties with the sale price at or above $1 million.
The new ‘Graduated Percent Fee’ Schedule:
• 1.0% of sale price for sales $1.0 – 2.0 million
• 2.0% of sale price for sales $2.0 – 2.5 million
• 2.5% of sale price for sales $2.5 – 3.0 million
• 3.0% of sale price for sales $3.0 – 3.5 million
• 3.5% of sale price for sales $3.5+ million
The new ‘Graduated Percent Fee’ applies to the following properties:
• Class 2 residential;
• Class 3A where the property is a farm (but only if the farmland contains a building or structure intended or suited for residential use);
• Class 4A commercial (other than industrial or apartment); and
• Class 4C cooperative units.
Example 1
Sales Price: $1,250,000
RTF: $12,600
GPF: $12,500
Total Fee: $25,100 (approx 2.0%) paid by the seller
Example 2
Sales Price: $2,750,000
RTF: $30,750
GPF: $68,750
Total Fee: $99,500 (approx 3.6%) paid by the seller
Example 3
Sales Price: $3,750,000
RTF: $42,850
GPF: $131,250
Total Fee: $174,100 (approx 4.6%) paid by the seller
Effective: July 10, 2025
The Law: NJ State law, Bill P.L. 2025, c.069 (A5804), An Act concerning the additional fees and taxes on certain transfers of real property for over $1 million
Application: Sale of real property
Who Pays: Seller
PS- In addition to the above fees that are collected by the NJ government, the seller is also responsible for paying capital gain taxes, attorney fees and broker commission for listed properties with a licensed real estate broker.
For questions, please contact our office at 201-760-1100.
