📅 New Jersey’s “Mansion Tax” Update Takes Effect July 10, 2025
Starting July 10, 2025, New Jersey will introduce a major shift in how real estate transactions over $1 million are taxed. A new supplemental realty transfer fee—commonly referred to as the updated “mansion tax”—is set to go into effect, and both sellers and buyers should be aware of how this change might influence the market.
🔁 Key Change: Who Pays
Under the new law, the supplemental mansion tax will now be paid by the seller, instead of the buyer as it was previously.
📊 New Tiered Tax Rates
The fee increases with the sale price:
$1M–$2M: 1%
$2M–$2.5M: 2%
$2.5M–$3M: 2.5%
$3M–$3.5M: 3%
$3.5M+: 3.5%
These are in addition to the existing Realty Transfer Fee, which is also the seller’s responsibility.
⏳ Important Deadlines
Transactions fully executed before July 10, 2025, and with the deed recorded by November 15, 2025, will not be subject to the new fee. Any contracts signed on or after July 10 will fall under the new rules.
