New Jersey Transfer Tax: Rates, Exemptions, and Senior Discounts

The New Jersey transfer tax, formally the Realty Transfer Fee, is paid by the seller when a deed is recorded, and it uses a tiered rate that starts at $2.00 per $500 of the sale price and climbs to $6.05 per $500 at the top. Sales above $1,000,000 also trigger a separate graduated fee of 1% to 3.5% on the entire price. Together, these two charges can add tens of thousands of dollars to a closing, so it is worth knowing exactly how they are calculated before you sign a contract.

Who Pays

The seller, identified as the “grantor” on the deed, owes the Realty Transfer Fee to the county recording officer at the time the deed is submitted for recording.¹ The seller is also responsible for the graduated percent fee that applies on sales over $1,000,000.² Without payment, the county will not record the deed, and ownership never becomes official in the public record.

Buyers and sellers sometimes shift the economic burden by contract, and it is common for a purchase agreement to allocate some or all of the fee to the buyer. That private arrangement does not change the statutory obligation. If the fees come in short, the recording officer looks to the seller.

What the Fee Is Calculated On

The fee is based on “total consideration,” which is more than the cash price. It includes all money paid, the balance of any mortgage the buyer assumes or takes subject to, and the fair market value of anything else exchanged as part of the deal.³ Stock, capital contributions, and a proportionate share of a mortgage balance in a partnership buyout all count.

When the deed itself does not establish a value, the fee is figured from the property’s assessed value adjusted to true market value using the Director’s Ratio for that municipality.³

Rates for Sales of $350,000 or Less

Homes selling for $350,000 or less use a three-tier schedule, and each tier applies only to the portion of the price within its range:³

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

A $325,000 sale, for example, generates a total fee of $1,910.³

Rates for Sales Over $350,000

Once consideration crosses $350,000, the entire sale price is recalculated under a six-tier schedule with higher rates at every level:²

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

The jump at $350,000 catches sellers off guard. A property priced at $349,000 owes $1,861. Push the price to $351,000 and the fee climbs to about $2,459, because every dollar from the first one is now taxed under the higher schedule. If you are negotiating near this line, run the math both ways.

Sample Calculation on a $500,000 Sale

Because the price exceeds $350,000, the higher schedule applies to the whole amount:

First $150,000: 300 units × $2.90 = $870
$150,001 to $200,000: 100 units × $4.25 = $425
$200,001 to $500,000: 600 units × $4.80 = $2,880

Total: $4,175. Each “unit” is $500 of the sale price. Divide each tier’s portion by 500, then multiply by the rate.

The Graduated Fee on Sales Over $1,000,000

Sales above $1,000,000 trigger a second layer of cost, the graduated percent fee under N.J.S.A. 46:15-7.2. It is calculated on the entire sale price, not just the amount above $1,000,000, and the seller pays it.⁴ The rates below took effect July 10, 2025 under P.L. 2025, c.69:⁵

Over $1,000,000 to $2,000,000: 1%
Over $2,000,000 to $2,500,000: 2%
Over $2,500,000 to $3,000,000: 2.5%
Over $3,000,000 to $3,500,000: 3%
Over $3,500,000: 3.5%

The graduated fee is on top of the standard Realty Transfer Fee, not in place of it. A seller closing on a $1,500,000 home pays both the tiered RTF (roughly $8,285) and a 1% graduated fee ($15,000), for combined transfer costs of about $23,285. A $4,000,000 sale carries a 3.5% graduated fee of $140,000 in addition to the standard RTF.

Whenever total consideration exceeds $1,000,000, Form RTF-1EE, the Affidavit of Consideration for Graduated Percent Fee, must be attached to the deed.²

Non-Resident Sellers: The Estimated Income Tax at Closing

If you live outside New Jersey, you face a separate payment at closing that is often confused with the transfer fee. This is not a transfer fee but an advance payment toward your New Jersey income tax on the gain. The estimated payment equals the gain from the sale multiplied by 10.75% (the state’s highest gross income tax rate), and it cannot be less than 2% of total consideration.⁶

The form depends on the seller’s situation:

GIT/REP-1: non-resident sellers declaring and paying at closing
GIT/REP-2: prepayment to the Division of Taxation before closing
GIT/REP-3: New Jersey residents or those who qualify for an exemption
GIT/REP-4: sellers who qualify for a waiver of the estimated payment

Every deed submitted for recording must include one of these forms. A missing or incomplete form causes the county clerk to reject the deed.⁶ The payment is credited against your actual New Jersey liability when you file, so any overpayment comes back as a refund.

Full Exemptions

Some transfers pay no Realty Transfer Fee at all. The most common are:²

Deeds where the stated consideration is less than $100
Transfers between spouses or between a parent and child
Deeds to or from the United States, New Jersey, or any agency or subdivision of either
Partition deeds among co-owners
Deeds in specific performance of a final court judgment
Corrective or confirmatory deeds that fix a prior recording

To claim any full exemption, the seller must still file Form RTF-1, the Affidavit of Consideration, and attach proof. A parent-to-child transfer, for example, requires a birth certificate or other documentation of the relationship.⁷

Reduced Rates for Seniors, Blind, and Disabled Sellers

Sellers who are 62 or older, legally blind, or disabled pay a much lower rate on the sale of a one- or two-family home that is their primary residence.⁸ The reduced rates apply only when total consideration is $350,000 or less:³

First $150,000: $0.50 per $500
$150,001 to $350,000: $1.25 per $500

On a jointly owned property, every owner has to qualify unless the co-owner is a spouse.⁸ The savings are real. On a $300,000 sale, a qualifying senior pays $337.50 instead of $1,185.

Newly constructed property receives a partial exemption equal to 80% of the state portion of the basic fee on the first $150,000 of consideration.⁸

Forms and Payment

Two forms carry most of the paperwork. Form RTF-1, the Affidavit of Consideration for Use by Seller, is required whenever a full or partial exemption is claimed or when the property is new construction, and it must be notarized and attached to the deed. Form RTF-1EE, the Affidavit for the Graduated Percent Fee, must accompany every deed where consideration exceeds $1,000,000 and every commercial property transfer.² Both forms ask for the block and lot numbers, the exact consideration, and the property classification from municipal tax records. Errors on these forms are one of the more common reasons deeds get rejected, so check the math against the rate schedule before submission.

Payment goes to the county recording officer (either the County Clerk or Register of Deeds, depending on the county). Fees under $10,000 can be paid by attorney trust account check. At $10,000 or more, the county requires certified funds: a certified check, bank check, or money order. Once the officer verifies the forms and payment, the deed is stamped and the transfer becomes official.

Refunds If You Overpaid

If you overpaid or missed an exemption at recording, you can file for a refund using Form RTF-3. Deadlines are strict and depend on which fee was overpaid:⁷

Standard Realty Transfer Fee: four years from the date of payment
Graduated percent fee: only 90 days from the date of payment

If the deed was originally recorded without the exemption, it has to be re-recorded at the county clerk’s office to reflect the exemption before the Division of Taxation will process the refund. Supporting proof travels with the RTF-3: a driver’s license or other age verification for the senior exemption, medical documentation for the disability exemption, or a birth certificate for a parent-to-child transfer.⁷

1
Justia. New Jersey Code 46-15-7 – Realty Transfer Fees
2
New Jersey Division of Taxation. Realty Transfer Fee
3
Division of Taxation. Realty Transfer Fees (RTF) Frequently Asked Questions
4
Justia. New Jersey Code 46-15-7.2 – Additional Fee on Certain Transfers of Real Property Over $1,000,000
5
New Jersey Legislature. P.L. 2025, c.069 (A5804)
6
State of New Jersey. Nonresident Seller’s Tax Declaration, Form GIT/REP-1
7
New Jersey Division of Taxation. Claim for Refund – Realty Transfer Fee
8
Justia. New Jersey Code 46-15-10.1 – Partial Fee Exemptions