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July 23, 2025
NJ Mansion Tax Update
In New Jersey, the "Mansion Tax", officially known as the Real Estate Transfer Tax, is shifting from buyers to sellers for properties valued at $1 million or more. This change took effect on July 10, 2025. Additionally, tax rates will increase for higher-priced properties.
Here's a breakdown of the changes:
Shift in Tax Burden:
The 1% tax previously paid by buyers on properties over $1 million will now be paid by sellers.
Increased Rates:
For properties with a sale price exceeding $2 million, the tax rate will increase incrementally as follows:
- 2% for properties between $2 million and $2.5 million
- 2.5% for properties between $2.5 million and $3 million
- 3% for properties between $3 million and $3.5 million
- 3.5% for properties over $3.5 million
Effective Date:
These changes are effective for transactions closing on or after July 10, 2025.
Read More HERE.
