New Jersey Real Estate Transfer Taxes: An In-Depth Guide (2024 Update)

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By Jon Stubbs Updated March 21, 2024

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How much are transfer taxes? | Who pays transfer taxes? | When are transfer taxes paid? | Methodology

New Jersey's current transfer tax rate is variable, ranging from $2.00 to $6.05 per $500 and scales the more expensive a home is. For a house worth $512,908 — the median home price in the state — the transfer tax due will be about $4,103.

Sellers are in charge of paying this amount, though buyers will have a partial tax due for home purchases above $1,000,000. Transfer taxes in New Jersey are often referred to as the realty transfer fee, or RTF.

Clever Real Estate can help you cut costs here — our concierge team will partner you with an experienced agent who can help you negotiate a good deal with your buyer on transfer taxes. You'll save big by paying only 1.5% in commission, which is much less than the New Jersey average of 2.99%.

💰 Find an agent who can negotiate your transfer taxes

You can't change transfer tax rates. But, an experienced Clever Real Estate agent can help you win the negotiation battle so you aren't stuck paying all of the transfer taxes on your own.

When you choose Clever, you'll work with a full-service realtor with transfer tax expertise in your local market.

Clever's service is totally free, with zero obligation — you can walk away at any time.

Who pays transfer taxes in New Jersey: The buyer or the seller?

While some real estate contracts can be drawn up so that the buyer is responsible for paying all or some of the transfer taxes, in New Jersey, it's 100% the seller's responsibility. The only time a buyer will have to put any money towards transfer fees is when the total home sale is over $1 million.

How much are transfer taxes in New Jersey?

Most states have a fixed state-level tax rate for real estate transfer taxes, but New Jersey has a more complicated approach. Transfer taxes in New Jersey have different rates set depending on the total value of the home being sold.

Taxation on homes under $350,000

  • $150,000 or less: $2.00 per $500 of value
  • $150,001 – 200,000: $3.35 per $500 of value
  • $200,001 – 350,000: $3.90 per $500 of value

Things become a bit more complex if you sell a home over $350,000. You're still expected to pay the $3.90 tax per $500 of value, up to the $350,000 mark. From there, you're taxed based on how many thousands of dollars over $350,000 your home sold for.

For instance, if your home sells for $400,000, you'd be taxed at $3.90 per $500 of value for the first $350,000 and would use the following guide to determine how the remaining $50,000 would be taxed.

Taxation on homes over $350,000 (starting after $350,000 mark)

  • $150,000 or less: $2.90 per $500 of value
  • $150,001 – 200,000: $4.25 per $500 of value
  • $200,001 – 550,000: $4.80 per $500 of value
  • $550,001 – 850,000: $5.30 per $500 of value
  • $850,001 – 1,000,000: $5.80 per $500 of value
  • $1,000,000 and over: $6.05 per $500 of value

New Jersey has special lower transfer tax rates offered to senior citizens, blind, and disabled applicants. In addition, buyers who purchase a home over $1,000,000 will be charged an additional 1% transfer tax fee.

You can better calculate your estimated real estate transfer taxes using this online calculator or with the help of a qualified real estate agent.

You can't get around paying transfer taxes in New Jersey — it's just part of selling a house. However, Clever Partner Agents can compute the specific taxes you owe, and they can also help you maximize your savings.

They’ll work to get you the best deal possible, all for a low listing fee of 1.5%.

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Can you deduct transfer taxes?

While many real estate taxes can be deducted at the end of the year, transfer taxes in New Jersey are not able to be deducted. Neither the seller nor the buyer can deduct transfer taxes on their taxes.

The only exception occurs if the property is used as an investment or rental property, in which case the seller could deduct them as a work expense.

While transfer taxes can't be deducted, they can help lower your taxes since they can be deducted from the total selling price, saving the seller money on capital gains expenses at the end of the year.

When do you pay transfer taxes in New Jersey?

Real estate transfer taxes are generally paid at the time of closing and should be factored into every seller's budget ahead of time. The total amount of transfer taxes due will be listed on both the seller and buyer's settlement forms.

New Jersey transfer tax summary

With how complex New Jersey’s transfer tax regulations are, you’ll want an experienced real estate agent to guide you through the process. Our Clever Partner Agents are from the biggest real estate brokerages in the country and can help you get the most out of your transaction.

We’ll partner you with a local real estate agent who knows how to deal with the state’s tax and helps negotiate a deal in your favor. What’s more, our agents charge only a 1.5% listing fee compared to the state average of 2.99%! The money you'll save can more than offset the cost of the transfer taxes.

» SAVE: Learn more about how a Clever agent can help you navigate New Jersey transfer taxes

Methodology

  • Transfer tax amounts are based on government website information as of February 2024.
  • We gathered our listing commission rate data from a December 2023 survey of 630 of our partner agents.
  • Home values, list prices, and sale prices are based on Zillow data as of March 2024.

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