On Monday, July 30, 2025, the 2026 Fiscal Year State Budget was signed into law by Governor
Murphy, which includes a significant change to real estate closing costs. Effective July 10, 2025,
a new graduated tax on high-end property sales will go into effect. This tax, known as the
“Supplemental Fee to the Realty Transfer Fee," is separate from the existing Realty Transfer Fee
and replaces what some called the “Mansion Tax.” This update modifies the supplemental fee
structure, notably on properties over $2 million, shifting the responsibility to sellers and
expanding progressive tiers.
Previously, this tax was a flat 1% on anything over $1 M paid by the buyer. nj.gov
Who Pays?
- Supplemental fee: As of July 9, 2025, the seller, not the buyer, is responsible—aligning
with the base RTF https://bit.ly/3GrltQI -
Base Realty Transfer Fee: Still paid by the seller, with graduated tiers based on sale price
https://bit.ly/40t1rvW
What This Means for Buyers & Sellers
- Sellers of luxury properties ($2 M+) will face significantly higher closing costs.
- Buyers no longer bear this burden—though the higher cost could still influence
negotiations and pricing. - Luxury home activity could slow.
REALTY TRANSFER FEE CALCULATOR TO ASSIST
If you are looking for additional resources, please reach out to me.