07/02/2025
NEW JERSEY "MANSION TAX" AMENDMENT. Consult with your lawyer and tax professional prior to signing listing agreements and contracts for sale.
The Senate and General Assembly of the State of New Jersey has modified N.J.S.A. 46:15-7.2 imposing severe tax implications related to the sale of certain real property in with sales prices exceeding $1,000,000.
This bill modifies the fees and taxes imposed on real property transfers valued over $1,000,000, shifting the responsibility for payment from buyers to sellers and introducing a graduated tax rate based on the property's value.
Specifically, for property transfers over $1,000,000, the bill establishes a tiered tax structure:
1.0% for consideration over $1,000,000 to $2,000,000
2.0% for consideration over $2,000,000 to $2,500,000
2.5% for consideration over $2,500,000 to $3,000,000
3.0% for consideration over $3,000,000 to $3,500,000
3.5% for consideration over $3,500,000 and above.
The bill applies to various types of real property, including residential properties, farm properties with residential structures, cooperative units, and commercial properties.
Additionally, the legislation allows sellers to apply for a refund of additional fees paid in excess of one percent for property transfers recorded on or before November 15, 2025, and executed under a contract before July 10, 2025. The changes are designed to modify the existing tax structure for real property transfers and will take effect immediately, applying to transfers occurring on or after July 10, 2025.
DISCLAIMER: This post is for informational purposes only and does not constitute legal advice. For advice regarding your specific situation, please consult with a lawyer.
Read a full text of the statute here:
Modifies payer of additional fees and taxes imposed on certain real property transfers; modifies fees and taxes imposed on property transfers valued over $2 million.