State guide · New Jersey
Seller closing costs in New Jersey
New Jersey's Realty Transfer Fee plus the Mansion Tax stack makes it one of the most expensive states in the country to sell a home above $1M.
Pre-loaded with New Jersey transfer-tax math. No signup required.
New Jersey at a glance
- State transfer tax
- Tiered / conditional rate — see rule below
- Transfer tax paid by
- Seller
- Owner's title insurance
- Buyer pays
- Closing handled by
- Attorney-handled
Realty Transfer Fee (RTF) tiered marginal: low table applies to sales <= $350K (0.40-0.78%); a separate higher table re-applies to the entire sale price for sales > $350K (0.58-1.21%). Residential sales > $1M add a graduated Mansion Tax (1% at $1M, 2% at $2M, 2.5% at $2.5M, 3% at $3M, 3.5% above $3.5M) applied to the full price. Seller pays both as of 2025-07-10.
In New Jersey, the buyer customarily pays for owner's title insurance. The seller pays the Realty Transfer Fee, attorney fees, and any required municipal certifications.
New Jersey is an attorney state. Both sides typically retain attorneys for the contract review and closing. The buyer's lender may close at the lender's office or at a title company, but the deal is reviewed and signed off by attorneys.
Typical seller closing cost band
7% – 10%
Roughly 7–10% of sale price. The New Jersey Realty Transfer Fee is one of the largest seller-paid transfer taxes in the country, and the Mansion Tax on residential sales above $1M adds another 1–3.5% on top — paid by the seller as of July 2025.
The New Jersey-specific line items
These are the costs that differ from the generic seller-closing-cost list — the ones a national calculator usually gets wrong for New Jersey.
Realty Transfer Fee (RTF) — tiered, paid by seller
Sales at or below $350,000 use a lower marginal table (effective rate 0.40–0.78%). Sales above $350,000 re-bracket the entire sale price under a higher table (0.58–1.21%) — so a $351,000 sale pays meaningfully more RTF than a $350,000 sale. The seller pays the RTF at close; the title company computes the exact amount.
Mansion Tax — residential sales above $1M
New Jersey's Mansion Tax is a graduated rate (1% at $1M, 2% at $2M, 2.5% at $2.5M, 3% at $3M, 3.5% above $3.5M) applied to the entire sale price — not the marginal amount. The seller pays this as of July 10, 2025 (a 2024 statutory change shifted it from the buyer). For a $1.2M residential sale, that's $12,000 in addition to the RTF.
Attorney fees (seller side)
Most New Jersey sellers retain a real estate attorney for contract review through close. Typical flat fee is $1,000–$2,500 depending on the firm and the complexity. Attorneys are not technically required by statute but are universal practice.
Municipal certifications (CO, smoke, fire)
Most New Jersey municipalities require a Certificate of Occupancy (CO) or Continuing Certificate of Occupancy (CCO) transfer inspection at sale, plus a smoke/CO/fire-extinguisher inspection. The seller pays the inspection fee ($75–$250 per item) and is responsible for remediating anything flagged before close.
Septic / well certifications (if applicable)
Properties on septic or well water require certifications at sale in many New Jersey municipalities. Septic inspection: $400–$700. Well water test: $200–$400. Failures can trigger meaningful seller-paid remediation.
Recent change worth knowing
Effective July 10, 2025, New Jersey shifted the Mansion Tax obligation from the buyer to the seller via the 2024 supplemental appropriations act. Sellers of residential properties above $1M now bear this cost. Confirm the current rule with the closing attorney — this is a recent change still working through practice.
A worked example
$500,000 sale price, typical New Jersey norms. Your numbers will vary — run the NETSheet for an actual estimate with your sale price, payoff, and close date.
- Sale price
- $500,000
- Mortgage payoff
- −$230,000
- Commission (5% total)
- −$25,000
- RTF (high-table, ~0.85% effective on $500K)
- −$4,250
- Title + settlement fees
- −$2,500
- Prorations + other seller costs
- −$1,500
- Estimated net proceeds
- $236,750
Numbers are illustrative — they don't replace a real NETSheet run with your contract terms.
Run your own New Jersey numbers
Pre-loaded with New Jersey transfer-tax rates and customary practice. Punch in your sale price, payoff, and close date — the tool fills the rest.
Frequently asked — New Jersey
How much are seller closing costs in New Jersey?
New Jersey sellers typically pay 7–10% of the sale price at close. The Realty Transfer Fee (RTF) runs 0.4–1.21% of sale price depending on which marginal table applies. For sales above $1M, the Mansion Tax adds 1–3.5% on top — paid by the seller as of July 2025. Other lines: real estate commission (5–6%), attorney fees ($1,000–$2,500), municipal inspection fees, and any required septic or well certifications.
What is the New Jersey Realty Transfer Fee?
The Realty Transfer Fee (RTF) is a graduated state and county tax paid by the seller on the transfer of real estate. For sales at or below $350,000 the effective rate runs roughly 0.40–0.78%. For sales above $350,000, a different (higher) marginal table re-applies to the entire sale price — bumping the effective rate to 0.58–1.21%. The title company computes the exact amount at close.
Who pays the Mansion Tax in New Jersey?
As of July 10, 2025, the seller pays the New Jersey Mansion Tax on residential sales above $1,000,000. The tax is graduated: 1% at $1M, 2% at $2M, 2.5% at $2.5M, 3% at $3M, 3.5% above $3.5M. It applies to the entire sale price, not the marginal amount. Before July 2025, this tax was the buyer's responsibility — a meaningful change for sellers planning a high-end transaction.
Who pays for title insurance in New Jersey?
In New Jersey, the buyer customarily pays for owner's title insurance. The seller is responsible for the Realty Transfer Fee, attorney fees, and any required municipal certifications, but not the buyer's title premium. This differs from Florida and Texas, where the seller customarily pays for the buyer's title.
Do I need an attorney to sell a home in New Jersey?
Practically, yes. New Jersey is an attorney state — both sides typically retain attorneys for the contract review and closing. Attorneys are not technically required by statute, but the universal practice in residential resale is to have one. Typical flat fee for a seller's attorney is $1,000–$2,500.
What are the New Jersey municipal inspections at closing?
Most New Jersey municipalities require a Certificate of Occupancy (CO) or Continuing CO transfer inspection plus a smoke/CO/fire-extinguisher inspection at sale. The seller pays the inspection fees and is responsible for remediating anything flagged before close. Properties on septic or well water often require additional certifications. The town's inspection department determines what's required.
How does the $350K RTF threshold work — does paying just under $350,000 help?
Yes, materially. Sales at or below $350,000 use a lower RTF rate table; sales above $350,000 re-bracket the entire sale price under a higher table. A sale at $351,000 pays meaningfully more RTF than one at $350,000 — not because of $1,000 of marginal tax, but because the whole price moves to a higher schedule. Sellers near the threshold sometimes negotiate accordingly. The title company can show both calculations.
Related guides
- How to calculate seller net proceeds — the general guide that the state-specific math sits on top of.
- Seller closing costs — all 50 states + DC — quick-reference table of transfer-tax rates by state.
- Contract-to-close transaction checklist — every task between accepted offer and closing day.