07/11/2025
Everything you need to know about the new NJ “Mansion Tax” change:
On June 30, the New Jersey Legislature passed a new budget that includes major changes to the “Mansion Tax” for homes over $1 million.
Here’s what you need to know:
The “Mansion Tax” now shifts to the seller.
Previously, buyers paid a 1% tax on homes over $1 million.
Now, sellers will be responsible for this tax starting July 10, 2025.
Tiered tax rates for homes over $2 million.
The higher the sale price, the higher the tax. Here’s the breakdown:
Price Point Fee
$1M – $2M 1%
$2M – $2.5M 2%
$2.5M– $3M 2.5%
$3M – $3.5M 3%
$3.5M and Above. 3.5%
Contract timing matters.
Homes that went under contract before July 10 and record the deed by November 15 may qualify for a rebate—but the new tax must still be paid up front.
This applies to all closings on or after July 10, 2025.
Even if your home was listed earlier, these changes apply if the closing happens on or after July 10, 2025.
This is a big change for NJ sellers. It’s good to know about it ahead of time so there are no surprises at closing.
Feel free to reach out if you’d like to talk about how it might affect your sale.
Source: New Jersey REALTORS
