TRENTON, N.J. — Governor Phil Murphy has approved changes to New Jersey’s real estate transfer fee, increasing the so-called “mansion tax” on high-value property sales as part of the state’s new budget.
Under the amended legislation, homes sold for less than $2 million will continue to be subject to a 1% tax. However, the rate rises significantly for higher-priced transactions. Sales between $2 million and $2.5 million will now be taxed at 2%, sales from $2.5 million to $3 million at 2.5%, and properties sold for more than $3 million will face a 3% transfer fee.
In a key shift, the responsibility for paying the tax will move from the buyer to the seller. The measure is set to take effect for property closings that occur after November 15.
The increase marks one of the most significant adjustments to New Jersey’s real estate taxation in recent years and is expected to generate new revenue by targeting luxury property sales.
