Transfer taxes and the mansion tax in NJ and NY
In New Jersey the seller pays both the realty transfer fee and, above $1,000,000, the graduated percent fee. In New York the seller usually pays the transfer taxes and the buyer pays the 1% mansion tax at $1,000,000 and up.
New Jersey
- Realty transfer fee: paid by the seller, at rates that rise with the price. Partial exemptions exist for some seniors, blind or disabled sellers, low and moderate income housing and new construction.
- Graduated percent fee (the former mansion tax): since July 10, 2025 it is paid by the seller on transfers above $1,000,000. It is 1% up to $2,000,000, 2% up to $2,500,000, 2.5% up to $3,000,000, 3% up to $3,500,000 and 3.5% above that, applied to the full price.
New York State
- State transfer tax: $2 for each $500 of the price, about 0.4%, usually paid by the seller.
- Mansion tax: 1% of the price on homes of $1,000,000 or more, paid by the buyer.
New York City
- Real Property Transfer Tax on homes: 1% up to $500,000 and 1.425% above that, usually paid by the seller.
- Additional state tax for NYC homes of $3,000,000 or more: $1.25 per $500, paid by the seller.
- Supplemental mansion tax for NYC homes of $2,000,000 or more, paid by the buyer, from 0.25% to 2.9% depending on the price.
Questions people ask
- Can the buyer and seller agree to split transfer taxes?
- In New York the contract can shift who pays some taxes. Ask your attorney. In New Jersey the law puts both fees on the seller.
- Is this tax advice?
- No. Rates and exemptions change. Confirm the amounts for your deal with your attorney or the tax agency.
Official sources
- NJ Division of Taxation, Realty Transfer Fees ↗
- NY State Department of Taxation, Real estate transfer tax ↗
- NYC Department of Finance, Real Property Transfer Tax ↗
Facts checked 2026-11-01. General information, not financial, legal or tax advice. We are not a lender.