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.
