Realty Transfer Fee NJ

New Jersey Realty Title Transfer Fee:

In New Jersey, the transfer of real property—from homes to commercial buildings—involves the payment of a Realty Transfer Fee (RTF). This fee is typically charged to the seller at the time the deed is recorded with the county clerk. Below, we will break down how the RTF is calculated, highlight any special circumstances or exemptions, and inform you of additional supplemental fees that may apply.

How NJ Realty Transfer Fees Are Calculated

The amount of the realty transfer fee depends primarily on the “consideration” (generally, the price paid for the property). In certain situations, if money does not change hands, the assessed value may be used instead [source].

Standard Realty Transfer Fee Rates

• For transfers not exceeding $350,000 total consideration:
  • $2.00 per $500 for consideration not exceeding $150,000
  • $3.35 per $500 for consideration between $150,000.01 and $200,000
  • $3.90 per $500 for consideration between $200,000.01 and $350,000
• For transfers exceeding $350,000 total consideration:
  • $2.90 per $500 for consideration not exceeding $150,000
  • $4.25 per $500 for consideration between $150,000.01 and $200,000
  • $4.80 per $500 for consideration between $200,000.01 and $550,000
  • $5.30 per $500 for consideration between $550,000.01 and $850,000
  • $5.80 per $500 for consideration between $850,000.01 and $1,000,000
  • $6.05 per $500 for consideration exceeding $1,000,000

Example: If your home sells for $400,000, you would use the second schedule, since the amount exceeds $350,000. Calculate the fee in increments, based on the brackets above [source].

NJ Real Estate Transfer Tax For Seniors And Disabled

Certain groups may qualify for partial exemption, resulting in significantly lower RTF rates. These groups include:

• Seniors (age 62 and older)
• Blind persons
• Disabled persons
• Properties classified as low and moderate income housing

Reduced rates for qualifying individuals:

• For total consideration not in excess of $350,000:
  • $0.50 per $500 for consideration not exceeding $150,000
  • $1.25 per $500 for consideration between $150,000.01 and $350,000
• For total consideration in excess of $350,000:
  • $1.40 per $500 for consideration not exceeding $150,000
  • $2.15 per $500 for consideration between $150,000.01 and $550,000
  • $2.65 per $500 for consideration between $550,000.01 and $850,000
  • $3.15 per $500 for consideration between $850,000.01 and $1,000,000
  • $3.40 per $500 for consideration exceeding $1,000,000

For further eligibility requirements and proof needed to claim a partial exemption, consult the official resources or legal professionals.

New Jersey Mansion Tax

In addition to the standard RTF, New Jersey requires a supplemental fee – Mansion Tax of 1% of the consideration for sales of real property when the sale price exceeds $1,000,000. Unlike the main RTF (which is paid by the seller), the supplemental fee is paid by the buyer [source].

There have been recent legislative attempts (NJ A200) to eliminate this supplemental fee, but as of May 6, 2025, no such change is confirmed to be in effect [source].

Is the NJ Realty Transfer Fee Deductible?

In most cases, the Realty Transfer Fee paid by the seller in New Jersey is not deductible from your ordinary income on your federal or New Jersey state income tax return. This means you cannot directly subtract this fee as an itemized deduction like you can with annual local property taxes or mortgage interest.

How to Pay and File the Realty Transfer Fee

1. The seller (or their attorney/agent) completes and signs the Realty Transfer Fee Affidavit when preparing the deed.
2. The deed, affidavit, and appropriate fee (paid by check or money order) are submitted to the county clerk’s office along with other required documents for recording.
3. If the supplemental fee is required, the buyer is responsible for paying it at closing.

Important: Always verify rates and eligibility, especially if partial exemption status may apply or when considering unique property types.

Conclusion

The New Jersey Realty Transfer Fee is a significant cost to consider for anyone buying or selling property in the state. Rates vary with the price, and various exemptions or supplemental fees may apply. For precise calculation and exemption details, consult the New Jersey Division of Taxation or seek guidance from a legal professional.

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