According to the New Jersey Fiscal Year 2026 Budget, the Supplemental Fee of the Realty Transfer Fee (RTF) will increase starting July 10, 2025.
🔍 Background on the Realty Transfer Fee (RTF):
- The Realty Transfer Fee (RTF) is a basic tax applied when real estate ownership is transferred.
- This tax has been in effect since 1968 and is typically paid at the time of closing.
📜 History of the Supplemental Fee:
- Introduced in 2004, the Supplemental Fee is an additional tax often referred to as the “Mansion Tax.”
- Previously: The buyer was responsible for paying this fee when purchasing properties priced over $1 million.
⚠️ Key Change Starting July 10, 2025:
- The buyer’s responsibility is eliminated.
- Instead, the seller will now be responsible for paying the entire Supplemental Fee.
✅ Summary of Changes:
| Category | Before July 10, 2025 | After July 10, 2025 |
|---|---|---|
| Who pays the Supplemental Fee? | Buyer pays 1% on sales over $1 million | Seller pays the full Supplemental Fee |
| Basic RTF | Seller pays based on sales price | Seller still pays the basic RTF |
| Additional Cost | Buyer pays supplemental fee in addition to RTF | Seller pays both RTF and Supplemental Fee |
🔔 Important Notes:
- The Supplemental Fee is in addition to the basic Realty Transfer Fee (RTF).
- The total amount varies by sale price and may result in significantly higher closing costs for sellers of high-value properties.
- For an accurate calculation of the total transfer taxes and for proper contract preparation, please consult a real estate attorney or title company.
About Richard Choi
Richard Choi is a Korean-speaking Realtor in New Jersey serving Palisades Park, Fort Lee, Englewood Cliffs, Leonia, Cliffside Park, and surrounding Bergen County communities. He helps buyers, sellers, investors, landlords, and tenants with residential, commercial, and business real estate.
Clients searching for a New Jersey Realtor, Bergen County Realtor, Palisades Park Realtor, Fort Lee Realtor, or Korean Realtor in New Jersey can count on Richard Choi for clear communication, local market knowledge, and practical guidance in both Korean and English.
Whether you are buying your first home, selling a property, relocating, investing, or trying to better understand the New Jersey real estate process, Richard Choi provides step-by-step support with professionalism and personal attention.
Richard Choi
New Jersey Realtor
Bergen County Korean Realtor
Palisades Park | Fort Lee | Englewood Cliffs | Leonia | Cliffside Park
https://shorturl.fm/pKqSS