Selling a home in New Jersey for $1 million or more?
You may now be responsible for a tax that used to fall on the buyer.
This change could cost you thousands more at closing than expected.
Here is what changed and what it means for you if you are planning to sell.
Quick Answer
- Homes over $1M may be taxed on the full sale price
- Sellers now pay in most cases
- Rates increase as prices go up.
Want to know what this looks like for your home? I can break it down for you based on your price range and recent sales. No pressure.
What Changed?
For contracts signed on or after July 10, 2025, New Jersey replaced the old 1% buyer tax with a new system.
The tax is now graduated and usually paid by the seller on homes over $1 million.
In many North Jersey towns, homes cross $1M faster than people expect.
Why This Matters More Than You Think
- Many homes now cross $1M without feeling like “luxury.”
- This tax can hit move-up sellers and long-time homeowners.
- It directly impacts what you walk away with.
Mansion Tax Rates
Up to $1,000,000
Rate: 0%
No tax
$1M to $2M
Rate: 1%
About $10K to $20K
$2M to $2.5M
Rate: 2%
About $40K to $50K
$2.5M to $3M
Rate: 2.5%
About $62K to $75K
$3M to $3.5M
Rate: 3%
About $90K to $105K
Over $3.5M
Rate: 3.5%
Starts above $122K
One-time closing cost based on the total sale price.
What This Means for You
- This can reduce your net at closing.
- Many sellers do not expect it.
- Pricing and timing matter more now.
Want a quick estimate based on your home? I can break it down for you. No pressure.
Can Buyers Help?
Real estate is negotiable. Buyers can help offset costs if both sides agree.
But it depends on the market and how strong your position is.
Official Calculator
Use this to estimate your exact cost:
