Affidavit of Consideration, Value, and Transfer Tax: Filing and Rates

The New Jersey Affidavit of Consideration is a sworn statement (Form RTF-1) that a seller must attach to every deed submitted for recording, disclosing the sale price and related details so the county can calculate and collect the correct Realty Transfer Fee. No county recording officer will accept a deed without a properly completed affidavit, and the seller is statutorily responsible for the fee.¹

When You Have to File the Affidavit

Every deed presented for recording in New Jersey must either recite the consideration in the deed itself or have an affidavit of consideration annexed to it. There is no minimum sale price. Even exempt transfers need the affidavit to document the exemption, and the county recording officer is legally prohibited from recording a deed without it.²

The requirement covers residential homes, commercial buildings, vacant land, and cooperative units. Warranty deeds and quitclaim deeds both trigger it. Transfers of partial interests are not exempt from the filing obligation either.

Information the Form Asks For

The RTF-1 requires the full legal names and mailing addresses of every grantor and grantee. Each party must provide a Social Security number or federal tax identification number. Nonresident sellers who have neither must file an IRS Form W-7 for a taxpayer identification number and attach it.³

You also enter the property’s Block and Lot numbers, which appear on the most recent property tax bill or municipal assessment records, and the exact sale price. Those figures need to match the final settlement statement. Clerks cross-check the numbers against the deed, and a mismatch can get the filing rejected at the counter.

If the consideration exceeds $1,000,000, the grantor also completes Form RTF-1EE, the Affidavit of Consideration for Graduated Percent Fee. That form applies to residential property (Class 2), farm property with a residential building (Class 3A), cooperative units, and commercial property (Class 4A).⁴ Both forms are available through the New Jersey Division of Taxation or your local County Clerk’s office.

What Counts as Consideration

Consideration is the total value exchanged for the property, not just the cash at closing. It includes the amount of any existing mortgage the buyer takes on, whether the buyer formally assumes the debt or simply takes the property subject to it. Any other liens or encumbrances that remain on the property after the transfer count as well.²

If the deal involves swapping one property for another, the fair market value of the exchanged property is part of the consideration. The same is true of any non-cash compensation. Understating this figure leads to underpayment of the transfer fee, which the county will catch and refuse to process.

Realty Transfer Fee Rates

New Jersey uses a tiered rate structure. The tiers themselves shift depending on whether total consideration is above or below $350,000: crossing that threshold recalculates every lower tier at a higher rate.

For transactions where total consideration is $350,000 or less:⁵

First $150,000: $2.00 per $500 of consideration
$150,001 to $200,000: $3.35 per $500
$200,001 to $350,000: $3.90 per $500

For transactions over $350,000:⁵

First $150,000: $2.90 per $500
$150,001 to $200,000: $4.25 per $500
$200,001 to $550,000: $4.80 per $500
$550,001 to $850,000: $5.30 per $500
$850,001 to $1,000,000: $5.80 per $500
Over $1,000,000: $6.05 per $500

Each tier applies only to the portion of the price within that bracket. A fractional amount of $500 counts as a full $500 for calculation purposes.

The Graduated Percent Fee on High-Value Sales

Separate from the standard Realty Transfer Fee, New Jersey imposes what is commonly called the “mansion tax” on higher-priced properties. Despite the nickname, the Graduated Percent Fee applies to residential homes, farm properties with residential buildings, cooperative units, and Class 4A commercial properties. It is calculated on the entire consideration, not just the amount above $1,000,000.⁶

Over $1,000,000 up to $2,000,000: 1% of total consideration
Over $2,000,000 up to $2,500,000: 2%
Over $2,500,000 up to $3,000,000: 2.5%
Over $3,000,000 up to $3,500,000: 3%
Over $3,500,000: 3.5%

The seller pays this fee. On a $1,500,000 residential sale, the Graduated Percent Fee alone is $15,000, on top of the standard Realty Transfer Fee. Because Form RTF-1EE must accompany the deed for any transaction triggering this fee, forgetting to prepare it will stop the recording.⁴

Exemptions You Still Have to File to Claim

New Jersey exempts a substantial list of transactions from the fee under N.J.S.A. 46:15-10. You still file the affidavit to claim the exemption; you just owe nothing. The commonly used exemptions include:⁷

Deeds where total consideration is less than $100
Deeds by or to the United States, the State of New Jersey, or any of their agencies and subdivisions
Deeds given solely to provide or release security for a debt
Deeds that confirm or correct a previously recorded deed
Deeds between spouses, or between a parent and child
Deeds recorded within 90 days after a divorce decree dissolving the marriage between the grantor and grantee
Deeds from an executor or administrator to a beneficiary or heir
Deeds by a receiver, trustee in bankruptcy, or assignee for the benefit of creditors
Deeds on a sale for delinquent taxes or assessments
Transfers between members of a combined group as part of a unitary business, for deeds entered into on or after January 1, 2021

The 90-day window on divorce transfers catches people off guard: recording more than 90 days after the decree costs you the exemption. Parent-child transfers are exempt regardless of consideration, but the affidavit must still document the relationship.

Where and How to File

Once the affidavit is signed and notarized, it goes to the County Clerk or Register of Deeds in the county where the property is located, submitted alongside the deed, the recording fee, and any required GIT/REP forms. Most filings are presented in person or through an authorized electronic recording portal.

Payment for the Realty Transfer Fee is typically made by certified check, attorney trust account check, or an approved electronic payment. The clerk checks that the math on the affidavit matches the deed before processing. Recording fees vary by county but generally start around $45 for the first page of a deed plus $10 per additional page.

Estimated Gross Income Tax for Sellers

The affidavit is not the only paperwork tied to recording a deed. Nonresident sellers must also pay estimated New Jersey gross income tax before or at closing, using Form GIT/REP-1. The recording officer cannot accept a deed without the appropriate GIT/REP form any more than it can without the RTF-1.⁸

The estimated payment equals the seller’s reportable gain multiplied by the highest New Jersey income tax rate, and in no case can it be less than 2% of the total consideration stated in the deed. Resident sellers who qualify for an exemption file a GIT/REP-3 instead, but they still must present that form at closing.³

Below-Market Transfers and Federal Gift Tax

When property changes hands for significantly less than fair market value, the IRS may treat the difference as a taxable gift. A parent selling a $500,000 home to a child for $100,000 has effectively made a $400,000 gift. The annual gift tax exclusion for 2026 is $19,000 per recipient; anything above that counts against the donor’s lifetime exemption.⁹

The federal lifetime gift and estate tax exemption for 2026 is $15,000,000, so most people will not owe gift tax out of pocket. But the transfer must be reported on IRS Form 709 if it exceeds the annual exclusion, with documentation of the property’s fair market value and the consideration actually paid.¹⁰ The New Jersey affidavit itself shows the low consideration, creating a paper trail that makes accurate federal reporting all the more important.

1
New Jersey Division of Taxation. Property Sale Realty Transfer Fee
2
New Jersey Department of the Treasury. Affidavit of Consideration for Use by Seller (RTF-1)
3
New Jersey Division of Taxation. FAQs on Gross Income Tax (GIT) Forms Required For Sale or Transfer of Real Property in New Jersey
4
New Jersey Division of Taxation. Affidavit of Consideration for Graduated Percent Fee (RTF-1EE)
5
New Jersey Division of Taxation. Realty Transfer Fee FAQs
6
Justia Law. New Jersey Code 46:15-7.2 – Graduated Percent Fee
7
Justia Law. New Jersey Code 46:15-10 – Exemptions
8
New Jersey Division of Taxation. Estimated Gross Income Tax Payment Requirements
9
Internal Revenue Service. Frequently Asked Questions on Gift Taxes
10
Internal Revenue Service. What’s New – Estate and Gift Tax