New Jersey Realty Transfer Fee Calculator
Don't be surprised at the closing table. Calculate your New Jersey Realty Transfer Fee (RTF) and potential Mansion Tax instantly.
Determine who pays, estimate standard vs. exempt rates, and break down the "Mansion Tax" surcharge. Data based on current NJ Division of Taxation rates.
Estimated Fee Preview
Enter your sale price below to see your fee.
What is the NJ Realty Transfer Fee?
The New Jersey Realty Transfer Fee is a fee imposed by the State of New Jersey when real estate title is transferred from one party to another. It is often one of the largest line items in closing costs in NJ, directly impacting the financial bottom line for both buyers and sellers. The fee is collected to fund state affordable housing initiatives and cover administrative costs associated with recording the deed.
Did you know?
Conventionally, the Seller pays the Realty Transfer Fee in New Jersey, unless negotiated otherwise in the contract of sale.
Source: NJ Division of Taxation (Official definition).
Factors That Determine Your Fee
Calculating the fee involves more than a simple flat percentage. Several specific variables determine the final amount you owe at closing.
- Sale Price: The primary driver of the fee. Unlike other states with flat rates, NJ uses a tiered structure based on the sale price.
- Tax Brackets: Fees are calculated in increments. The "per $500" rule means the rate changes as the price passes certain thresholds.
- The $1 Million Threshold: This is the trigger point for the "Mansion Tax," an additional surcharge applied to high-value transactions.
- Exemptions: Qualifying individuals, such as Seniors (65+), Blind persons, or Disabled persons, may be eligible for significantly reduced rates.
How We Calculate Your NJ Realty Transfer Fee
We use the exact methodologies prescribed by the NJ Division of Taxation to ensure accuracy. The calculation differentiates between the standard transfer fee and the progressive "Mansion Tax."
Fee = (Tiered Calculation) + (Overage > $1M × 0.01)
How it works:
- Base Fee: Calculated on the total sale price using "per $500" increments.
- Mansion Tax: If the price is over $1,000,000, 1% is charged on the amount exceeding $1 million.
- Exemption Discount: For qualified seniors/disabled, the rate is reduced by 75% (or a specific flat low fee).
How to Use This Calculator
Follow these steps to ensure you get an accurate estimate of your closing costs.
- Enter Sale Price: Input the final agreed-upon sale price from the contract, not the original list price.
- Select Status: Choose "Standard" or "Senior/Disabled" (only select the latter if you possess the required exemption certificates/proof).
- View Breakdown: Review the calculated Base Fee versus any applicable Mansion Tax surcharge.
- Save Results: Use the PDF export feature to save the estimate for your closing disclosure or records.
Understanding Your New Jersey Realty Transfer Fee Results
Once calculated, your fee will fall into one of the following bands. Use these ranges to understand the impact on your transaction.
$0 - $2,000
Low ImpactTypical for properties under $250k. This represents a manageable closing cost relative to the property value.
$2,000 - $6,000
Average NJ HomeCommon for the $350k - $800k range. This is the standard fee range for most residential transactions in New Jersey.
$6,000 - $10,000
High-End StandardProperties approaching $1M. As you near the "Mansion Tax" threshold, the marginal cost per dollar increases.
$10,000+
Mansion Tax TerritorySales over $1M. The "Mansion Tax" (1% of overage) adds significant cost. Ensure this is strictly budgeted in the seller's net proceeds.
Standard Fee vs. Exempt Fee Comparison
See how much you can save with eligible exemptions. Please note that exemptions require strict documentation.
| Sale Price | Standard Rate | Exempt Rate (75% off) | Savings |
|---|---|---|---|
| $100,000 | $350.00 | $87.50 | $262.50 |
| $500,000 | $2,325.00 | $581.25 | $1,743.75 |
| $1,000,000 | $5,275.00 | $1,318.75 | $3,956.25 |
Why Your Fee May Differ
While this calculator uses standard state rates, several external factors can alter the final amount owed at closing.
- Property Classification: This calculator defaults to "Class 2" (Residential). Class 3 (Farm) or Class 4 (Commercial) properties may have different calculations.
- Local Municipality Fees: Some counties or municipalities in NJ add small surcharges that are not included in the state RTF calculation.
- Negotiation: While the legal obligation falls on the grantor (seller), who pays the fee is often a point of negotiation in the contract.
- Date of Sale: Rates can change with new legislation. Always verify with a title company if the transaction is closing far in the future.
Legislative Updates
Real estate laws evolve. Ensure you are aware of any changes to NJ Division of Taxation rates before closing.
When to Use This Calculator
This tool is useful at various stages of the real estate lifecycle for different parties involved.
Common Scenarios
- Sellers: Preparing a "Net Sheet" before listing to accurately estimate proceeds and price the home correctly.
- Buyers: Reviewing the Closing Disclosure (CD) to verify the accuracy of the fees charged by the title company.
- Refinancing: Checking if the RTF applies to specific loan modifications (usually it does not, but good to verify).
- Relatives: Transferring deeds between family members (often for $1 consideration) to calculate the low fee associated with such transfers.
Pro Tip
Always compare the calculator's estimate against the official Closing Disclosure (CD) provided by your settlement agent three days before closing.
Limitations & Common Mistakes
While this calculator provides a close estimate, it is not a substitute for professional legal or financial advice.
- Not Legal Advice: Please consult a real estate attorney for specific legal questions regarding your transaction.
- Exemption Complexity: Possessing a senior ID card does not automatically qualify; specific income limits or property usage requirements (e.g., primary residence) may apply.
- Excluded Costs: This is ONLY the state RTF. It does not include Attorney fees, Title Insurance premiums, or County Recording fees.
- Common Error: Do not confuse the "Mansion Tax" (1% of the amount over $1M) with a flat 1% of the total price.
Disclaimer: This tool is for estimation purposes only. Final fees are determined by the NJ Division of Taxation and your closing agent.
Frequently Asked Questions About NJ Realty Transfer Fees
Sources & References
We rely on official government data to ensure our calculator is accurate and up-to-date.
Understanding NJ Realty Transfer Fees
What is the Realty Transfer Fee (RTF)?
The Realty Transfer Fee is a tax imposed on the seller of real property in New Jersey when the title to the property is transferred. The fee is based on the sale price and is typically paid at the real estate closing.
Mansion Tax Explained
As of 2023, New Jersey imposes an additional 1% "Mansion Tax" on the portion of the sale price exceeding $1,000,000. This applies to all properties over $1M, regardless of exemption status.
About the Author
Nithya Madhavan
Web developer and data researcher creating accurate, easy-to-use calculators across health, finance, education, and construction and more. Works with subject-matter experts to ensure formulas meet trusted standards like WHO, NIH, and ISO.