New Jersey Lawyers BlogNew Jersey Real Estate Law Update: Significant Changes to New Jersey Fees on Real Estate Transfers over $1,000,000
New Jersey real estate law received a significant change in the fees charged to buyers and sellers in NJ real estate transactions.
On June 30, 2025, New Jersey enacted P.L. 2025, c. 69, which amends the so-called “Mansion
Tax”. Pursuant to the prior legislation, adopted in 2004, residential properties and certain commercial properties which sold for over $1 million in New Jersey were subject to a “Mansion Tax” which required the buyers of the real estate to pay 1 percent of the purchase price to the State of New Jersey.
Under the new law, a buyer no longer has to pay the 1% “Mansion Tax” and as of July 10, 2025, sellers will pay a progressive fee for properties sold for more than $1 million. The fee on sales between $1 million and $2 million remains set at 1 percent. For a sale price over $2 million but below $2.5 million, seller will pay 2 percent of the sales price and fee—which roughly translates to an additional $40,000 expense. Properties over $3.5 million would see sellers facing a fee hike of up to 3.5 percent.