New Jersey mansion tax calculator
Since July 10, 2025 the seller pays it: 1% to 3.5% of the full price on sales over $1 million.
Estimates only. Not tax or legal advice. Sources: Division of Taxation notice and clarification, checked November 11, 2026.
The rates
The official name is the Graduated Percent Fee. One rate applies to the whole price, picked by the price band.
| Sale price | Rate on the full price | Example |
|---|---|---|
| $1,000,000 or less | 0% | None |
| Over $1,000,000 to $2,000,000 | 1% | $2,000,000 pays $20,000 |
| Over $2,000,000 to $2,500,000 | 2% | $2,500,000 pays $50,000 |
| Over $2,500,000 to $3,000,000 | 2.5% | $3,000,000 pays $75,000 |
| Over $3,000,000 to $3,500,000 | 3% | $3,500,000 pays $105,000 |
| Over $3,500,000 | 3.5% | $4,000,000 pays $140,000 |
What changed in July 2025
Before July 10, 2025 the buyer paid a 1% fee on residential sales over $1 million. For deeds submitted on or after July 10, 2025 the seller pays the new graduated fee, on top of the realty transfer fee.
For a seller at these prices, the listing fee matters more than ever. At 1%, a $2,750,000 listing fee is $27,500. At the 2.61% New Jersey average it would be $71,775.
Buyer's agent pay is separate and your choice.
In New Jersey commissions are negotiable.
Questions
Who pays the mansion tax in New Jersey?
Since July 10, 2025, the seller, for deeds submitted for recording on or after that date. Before that, the buyer paid a 1% fee on residential sales over $1 million.
What are the New Jersey mansion tax rates?
1% over $1 million up to $2 million, 2% up to $2.5 million, 2.5% up to $3 million, 3% up to $3.5 million, and 3.5% above $3.5 million. The rate applies to the full price, not just the part over $1 million.
Is a $1,000,000 sale subject to the mansion tax?
No. It applies only when the price is more than $1,000,000.
Can the buyer agree to pay it?
The State collects it from the seller. Buyer and seller can agree privately in the contract to shift the cost; ask your attorney.
Which properties does it cover?
Residential property (Class 2), farm property with a residence (Class 3A), certain commercial property (Class 4A) and co-op units (Class 4C). Some transfers are exempt; your attorney confirms.
