Trenton, New Jersey. As part of the state’s new budget, Governor Phil Murphy has authorized revisions to New Jersey’s real estate transfer charge, raising the so-called mansion tax on high-value property sales.
A 1% tax will still be applied to residences sold for less than $2 million under the amended law. But for more expensive purchases, the rate increases dramatically. There will now be a 3% transfer charge for houses sold for more than $3 million, a 2% tax on sales between $2 million and $2.5 million, and a 2.5% tax on sales between $2.5 million and $3 million.
One significant change is that the seller will now be responsible for paying the tax instead of the buyer. For property closings that take place after November 15, the measure will go into effect.
Targeting purchases of premium real estate, the hike is anticipated to create additional revenue and is one of the biggest changes to additional Jersey’s real estate taxation in recent years.
