07/03/2025
On June 30,2025, the State of NJ passed its 2026 budget which included significant increases to the “Mansion Tax.” The “Mansion Tax” was a 1% tax levy imposed by the state for any homes sold over $1M in Sale Price and historically paid by the Buyer. NOW, the Mansion Tax will be paid by the SELLER and is now a sliding scale depending on Sale Price. The increases take effect July 10,2025 and will apply to all RESIDENTIAL and COMMERCIAL sales. These increased fees are in addition to the Realty Transfer Fee imposed upon all SELLERS in effect since 1968. Here’s a quick rundown:
BEFORE:
– Buyers paid 1% of the purchase price at closing on $1M+ properties.
– For a $1.2M home, that meant a $12,000 buyer-side cost.
AS OF JULY 10, 2025:
– Sellers are responsible for this fee at closing.
– Buyers will no longer be charged the 1% mansion tax, which can help ease the cost of entry into the $1M+ market.
💰New tax brackets on high-end properties:
1%: $1 M – $2 M
2%: $2 M – $2.5 M
2.5%: $2.5 M – $3 M
3%: $3 M – $3.5 M
3.5%: $3.5 M+
✅ Transition period: Contracts signed by July 9, 2025 and recorded by Nov 15, 2025 are grandfathered at current 1% rate.
This applies to single-family through 4-unit residential homes and most commercial buildings. QUESTIONS? Drop us a DM.👇
