New Jersey Realty Transfer Fee: What Sellers Need to Know
If you are selling a house in New Jersey, one of the biggest closing costs you may pay is the New Jersey Realty Transfer Fee (RTF). This fee is charged when the property is transferred from the seller to the buyer and the deed is recorded with the county.
Understanding how the Realty Transfer Fee works can help you estimate your closing costs and avoid surprises at closing.
Who Pays the Realty Transfer Fee in New Jersey?
In most New Jersey real estate transactions, the seller pays the Realty Transfer Fee. The fee is usually deducted from the seller’s proceeds at closing by the title company or closing attorney and paid to the county clerk when the deed is recorded.
This means sellers typically do not pay this fee upfront — it is paid as part of the closing costs when the property is sold.
You can learn more about the closing process here:
What Happens at Closing in New Jersey
How NJ Realty Transfer Fees Are Calculated
The amount of the realty transfer fee depends primarily on the sale price of the property (also called the “consideration”). The fee is calculated using a tiered system based on the sale price.
Standard Realty Transfer Fee Rates
For transfers not exceeding $350,000:
- $2.00 per $500 for consideration up to $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:
- $2.90 per $500 for consideration up to $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 over $1,000,000
Because the fee is calculated in tiers, the total amount increases as the sale price increases.
Example Realty Transfer Fee in New Jersey
Here are rough examples of transfer tax costs in New Jersey:
| Sale Price | Approx Transfer Fee |
|---|---|
| $300,000 | ~$2,100 |
| $400,000 | ~$3,300 |
| $500,000 | ~$4,300 |
| $600,000 | ~$5,300 |
| $800,000 | ~$7,300 |
| $1,000,000 | ~$9,000 |
These are estimates. Actual fees may vary slightly.
Reduced Realty Transfer Fee (Seniors & Disabled)
Certain groups may qualify for reduced Realty Transfer Fee rates, including:
- Seniors (age 62 and older)
- Blind persons
- Disabled persons
- Low and moderate income housing
Reduced rates are significantly lower than standard rates, but eligibility requirements must be met and documented at closing.
New Jersey Mansion Tax
In addition to the standard Realty Transfer Fee, New Jersey charges an additional tax on property sales over $1,000,000, commonly known as the “Mansion Tax.”
As of July 10, 2025, New Jersey changed the Mansion Tax law. The tax is now paid by the seller instead of the buyer, and the tax amount may increase for higher-priced properties.
New Jersey Mansion Tax Rates
| Sale Price | Tax Rate |
|---|---|
| $1,000,000 – $2,000,000 | 1% |
| $2,000,000 – $2,500,000 | 2% |
| $2,500,000 – $3,000,000 | 2.5% |
| $3,000,000 – $3,500,000 | 3% |
| $3,500,000+ | 3.5% |
The Mansion Tax is paid at closing and is collected by the title company or closing attorney when the deed is recorded.
Because this tax is now paid by the seller, it is an important closing cost to consider when selling a higher-value property in New Jersey.
When Is the Realty Transfer Fee Paid?
The Realty Transfer Fee is paid at closing when the deed is recorded with the county. The title company or closing attorney will calculate the fee and deduct it from the seller’s proceeds.
The title company then submits the fee along with the deed and required paperwork to the county for recording.
You can learn more about how closing works here:
Title Company and Attorney in New Jersey
Is the NJ Realty Transfer Fee Tax Deductible?
In most cases, the Realty Transfer Fee is not deductible as an income tax deduction. However, it may be added to the cost basis of the property for capital gains tax purposes. Sellers should consult a tax professional for advice on their specific situation.
How the Realty Transfer Fee Affects Sellers
Because the Realty Transfer Fee is usually paid by the seller, it is one of the larger closing costs when selling a house in New Jersey. Sellers should factor this into their estimated net proceeds when deciding whether and when to sell.
Typical seller closing costs in New Jersey may include:
- Realty Transfer Fee
- Attorney fee
- Title company fees
- Mortgage payoff
- Recording fees
- Prorated property taxes
- Municipal fees
- Repairs (if selling on the market)
FAQ – Realty Transfer Fee NJ
Who pays the Realty Transfer Fee in NJ?
In most cases, the seller pays the Realty Transfer Fee at closing.
How is the Realty Transfer Fee calculated?
It is calculated based on the sale price of the property using a tiered fee system.
When is the Realty Transfer Fee paid?
It is paid at closing when the deed is recorded.
Do seniors pay the Realty Transfer Fee in NJ?
Seniors, disabled individuals, and certain low-income housing transfers may qualify for reduced rates.
What is the Mansion Tax in NJ?
The Mansion Tax is a 1% tax on property sales over $1,000,000 and is typically paid by the buyer.
Selling a House in New Jersey
If you are planning to sell a house in New Jersey, understanding closing costs — including the Realty Transfer Fee — is an important part of planning your sale.
If you want to sell your house without repairs, showings, or long timelines, you can learn more here:
Sell Your House Fast for Cash in New Jersey
Or call 732-372-0940 to discuss your situation.
Disclaimer
This content is for informational purposes only and does not constitute legal or tax advice. Realty Transfer Fees, exemptions, and closing costs can vary depending on the transaction. Sellers should consult with a real estate attorney, title company, or tax professional for guidance specific to their situation.