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ew Jersey's mansion tax has seen a significant increase in rates, shifting the responsibility from buyers to sellers. The bill, passed alongside the state's $58.78 million fiscal year 2026 budget, affects multimillion-dollar home sales. The "Assessment on Real Property Greater than $1 million" or "Additional Fees on Certain Transfers of Real Property Over $1 Million," originally signed into law in 2004, has historically charged buyers a 1% supplemental realty transfer fee.

    The new bill takes effect July 1 and maintains the original 1% fee for home sales worth $1 million to $2 million. However, it introduces higher fees for increasingly expensive properties: 2% for sales between $2 million and $2.5 million, increasing by half a percentage point for every $500,000 more, topping out at 3.5% for property sales over $3.5 million.

    This change applies to residential real estate, most commercial properties, certain farm properties, and cooperative units. Exemptions can be found on the state Division of Taxation website. The New Jersey mansion tax is expected to bring in more than $550 million in revenue for fiscal year 2026, distributed among various funds, including the New Jersey Affordable Housing Trust Fund and the General Fund.