Frequently Asked Questions About The New Jersey Transfer Tax

Some of the most frequent questions our attorneys receive are in regards to the New Jersey transfer tax, officially the realty transfer fee. Below, you can find answers to the most common questions we receive.

What Is The New Jersey Transfer Tax?

The realty transfer fee, (RTF) also known as the New Jersey transfer tax, was created in 1968 as a way for the state to recoup costs of tracking home sales. Over the years the realty transfer fee has become more commonly known as a tax because of its high fees. The transfer tax is due at closing.

How Much Will I Owe?

The realty transfer fee is based on the purchase price of your home. Homes sold for over $1,000,000 are also subject to the New Jersey state mansion tax, although that is paid by the purchaser.

To determine the RTF for your home sale, see the chart below:

  • You will pay $2.00 for every $500 for which your home sold, if less than $150,000
  • You will pay $3.35 for every $500 if your home sold for more than $150,000 but less than $200,000
  • You will pay $3.90 for every $500 if your home sold between $200,000 and $350,000

If your home sells for more than $350,000, you will pay more per every $500 dollars on a grading scale. For example, you must pay $2.90 for the first $150,000 of the purchase price, and $6.05 for every 500 dollars your house sold for over $1 million.

There are online calculators available to estimate your RTF.

Am I Eligible For A Discount?

You may be eligible for a discount on the realty transfer fee if you are a senior citizen (over the age of 62) or if you have a physical disability on record with the state of New Jersey (contact us to determine eligibility for these discounts). There is also a discount for new construction homes.

You may also be exempt from the RTF if you are transferring title to your child.

In some cases, you may be able to meet a partial exemption.

More Questions?

If you have questions about eligibility for exemptions to the realty transfer fee, you can reach our lawyers in Howell, New Jersey, at 732-639-1952 or 732-895-0109 to set up a free 30-minute consultation. We are also available by phone if you cannot make it into the office.