09/24/2026
New Jersey Mansion Tax Shifted Sellers | Curious to find out more? Call me at 201-575-1903
Big changes are coming to New Jerseyâs mansion tax in 2025. Starting July 10, sellersârather than buyersâwill be on the hook for this fee when selling qualifying properties. If your sale price crosses the $1M mark, the mansion tax applies to the entire amount, not just whatâs above $1M, so closing costs can be much higher than before. The rate is still 1% for properties sold between $1M and $2M, but it increases by tierâcapping at 3.5% for deals over $3.5M anywhere in the state. This tax covers a broad range of homes (from single-family up to four-family, condos, co-ops, and some farms with a house), plus Class 4A commercial properties like offices and retail. Exemptions include vacant land, industrial sites, large apartment buildings (5+ units), certain family or estate transfers, and a few other cases. Thereâs a short window of transition relief: if your contract is signed before July 10 and the deed is recorded by November 15, you might qualify for a refund on any tax paid above 1%. As someone who helps clients build wealth through real estate, I keep a close watch on these shifts to protect your interests at every step.
