The NJ Mansion Tax (Graduated Percent Fee): Now Paid by the Seller
For years the “mansion tax” was the buyer’s problem. In 2025 that changed — and if you’re selling a New Jersey home for over a million dollars, the change is now yours to plan for.
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The 2025 change
For deeds recorded on or after July 10, 2025, New Jersey moved the mansion tax (officially the Graduated Percent Fee) from the buyer to the seller, and replaced the old flat 1% with a graduated rate that climbs with price.
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The brackets — and the “cliff”
The graduated rates run: 1% on a sale of $1,000,000 to $2,000,000; 2% over $2M to $2.5M; 2.5% over $2.5M to $3M; 3% over $3M to $3.5M; and 3.5% above $3.5M. The catch most people miss: the rate applies to the entire sale price, not just the slice over the threshold. That creates real “cliffs” — nudging a price from $999,999 to $1,000,001 triggers the full 1% on the whole amount, so pricing right at a bracket edge matters.
- Confirm whether your sale price crosses $1,000,000 — below that, there’s no mansion tax.
- Find your bracket (1% to 3.5%) and remember the rate hits the whole price, not just the excess.
- Mind the bracket edges — a few dollars over a threshold can cost thousands.
- Check exemptions: vacant land, qualified farmland, certain transfers, and 5+ unit apartment buildings are treated differently.
- File Form RTF-1EE with the deed, and have your attorney confirm the figure.
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Keep reading
Next – The NJ exit tax for out-of-state sellers
Back to – to the full guide.
General information only, not legal or tax advice. Confirm the current brackets and exemptions with the New Jersey Division of Taxation and a New Jersey real estate attorney.