| Sale price | Rate | Supplemental fee owed by the seller |
|---|---|---|
| $999,999 | none | $0 |
| $1,000,000 | No supplemental fee | $0 |
| $1,500,000 | 1 percent | $15,000 |
| $2,000,000 | 1 percent | $20,000 |
| $2,200,000 | 2 percent | $44,000 |
| $2,700,000 | 2.5 percent | $67,500 |
| $3,200,000 | 3 percent | $96,000 |
| $3,900,000 | 3.5 percent | $136,500 |
New Jersey’s Graduated Percent Fee, often called the mansion tax, is generally a seller-paid charge on applicable transfers over $1 million. Rates depend on the sale price and apply to the entire consideration. Include the fee in the net estimate alongside the separate Realty Transfer Fee and other selling costs.
What actually changed
For twenty years, buyers paid a flat 1% fee on purchases of more than $1 million. The 2025 law did two things at once: it moved the obligation to the seller, and it made the rate graduated. Sellers also still pay New Jersey’s separate realty transfer fee, which existed all along. So a seller’s total transfer cost at closing now has two parts stacked together.
The current tiers
- $1,000,000 or less, no supplemental fee
- Above $1,000,000 through $2,000,000, 1%
- Above $2,000,000 through $2,500,000, 2%
- Above $2,500,000 through $3,000,000, 2.5%
- Above $3,000,000 through $3,500,000, 3%
- Over $3,500,000, 3.5%
The rate applies to the full price. Sell at $2,100,000 and you owe 2% of the whole number, $42,000, not 2% of the overage. That cliff at each threshold matters enormously for pricing strategy.
Why the thresholds change how we price
Near a tier boundary, compare the complete proceeds. At $1,995,000, a 1% Graduated Percent Fee is $19,950; at $2,050,000, a 2% fee is $41,000. The higher price still leaves $33,950 more after this fee alone. Other costs and contract terms must also be included in the comparison.
A lower fee does not necessarily leave the seller with more money. At $2,040,000, the 2% fee is $40,800, leaving $1,999,200 before other costs. At $1,999,000, the 1% fee is $19,990, leaving $1,979,010. The higher offer leaves $20,190 more at this stage. Compare the complete net sheet, not the fee alone.
What this means for a typical Gold Coast sale
For an applicable $1.4 million sale, the 1% fee is $14,000; at $3.4 million, the 3% fee is $102,000. Include the charge with other selling costs when estimating proceeds.
Common questions I get
Does this apply to condos and brownstones, or just houses? The fee generally applies to covered Class 2 residential transfers above $1 million, including condos and houses, subject to exemptions. Other specified property classes are covered as well. Have the closing professionals confirm the property classification and applicable exemption rules.
Can the buyer agree to contribute? The seller is statutorily responsible. Any negotiated allocation of costs should be addressed clearly in the contract with advice from the parties’ attorneys.
What about older contracts? The 2025 law included transition provisions for certain earlier contracts. For a current transaction, have your attorney apply the current rules and any relevant exemption rather than relying on an older closing example.
The one takeaway
Review the complete net estimate before deciding between offers or pricing scenarios. Your attorney and closing professionals should confirm the fees and any exemptions that apply to the transaction.
Discuss a net estimate for your home with Anthony, or use the seller net sheet calculator to explore a price scenario.
Sources
See the New Jersey Division of Taxation’s Realty Transfer Fee and Graduated Percent Fee schedules, including covered classifications and exemptions.
Quick answers
Who pays the mansion tax in New Jersey in 2026?
The seller is statutorily responsible for the Graduated Percent Fee on covered transfers above $1 million. Rates range from 1% to 3.5% and apply to the full consideration. Confirm property classification, exemptions, and contract terms with your attorney.
How much is the mansion tax on a $2 million sale in New Jersey?
$20,000 at the 1 percent tier for sales above $1 million through $2 million; a sale just above $2 million moves to the 2 percent tier on the full price, so the threshold matters in pricing negotiations. Confirm the tier boundaries with the Division of Taxation.
Is the mansion tax the same as the realty transfer fee?
No; the realty transfer fee is a separate graduated fee the seller generally pays on a taxable transfer, subject to exemptions (about $9,575 on $1 million), and the supplemental fee applies only to sales of more than $1 million, on top of it.
Reviewed September 2026 by Anthony Vetrano, Associate Broker. Fee schedules change; confirm with your attorney and the Division of Taxation before closing.
Written by Anthony Vetrano, Associate Broker, Hudson Agents team at Weichert, Realtors (Hoboken, NJ). NJ License #2076762.
Anthony works with buyers and sellers in Hoboken, Jersey City and surrounding Hudson County communities. View his transaction history and professional background.
About Anthony · Book a call · 908-227-8226 · LinkedIn · Instagram