New Jersey’s Graduated Percent Fee (Previously known as the "Mansion tax") - Effective July 10, 2025

Graduated Percent Fee — Rate Schedule

Applies in addition to standard RTF on seller transfers.

Seller’s Quick Estimator

Key Notes & FAQs

• Effective date: Transfers recorded on or after July 10, 2025.
• Refund option: For certain fully executed pre-July 10 contracts recorded by Nov 15, 2025, refund may apply.
• Scope: Residential and commercial transfers exceeding $1 M.
• Separate from RTF: This fee is the supplemental fee on seller, in addition to standard RTF.
• What is this tax being used for?: The money is set to go to the General Fund..
• Is the Graduated Percent Fee separate from the Realty Transfer Fee?: Yes, the Realty Transfer Fee has been in effect since 1968. The Graduated Percent Fee, formerly known as the “mansion tax” or “Supplemental Fee to the Realty Transfer Fee”, was implemented in 2004 for residential and 2006 for commercial, and until the FY 2026 budget was passed, was paid for the buyer.
• Does this apply to residential and commercial?:The Graduated Percent Fee applies to all residential and most commercial properties. According to the State of New Jersey: “As a supplemental fee to the RTF, the State imposes a fee on the recording of the deed for the sale of real property when the consideration paid is more than $1,000,000. This additional fee applies to all deeds where the land conveyed is classified as follows: Class 2 residential; Class 3A where the property is a farm (but only if the farmland contains a building or structure intended or suited for residential use); Class 4A commercial (other than industrial or apartment); and Class 4C cooperative units. New Jersey recognizes certain exemptions from the supplemental fee. Information on exemptions is found on Form RTF-1EE, Affidavit of Consideration for Use by Buyer, and must be annexed to every deed for consideration over $1,000,000 and with every commercial property transfer.
• What is the "Graduated Percent Tax"?: The Graduated Percent Tax is the name the State of New Jersey Department of Treasury has given the former “mansion tax” or “Supplemental Fee to the Realty Transfer Fee.” This is how they refer to this fee on all their documentation.