New Jersey Real Estate Transfer Tax Increase Guide (effective July 10, 2025)
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: CategoryBefore July 10, 2025After July 10, 2025Who pays the Supplemental Fee?Buyer pays 1% on sales over $1 millionSeller pays the full Supplemental FeeBasic RTFSeller pays based on sales…
