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Comprehensive Guide

NJ Seller Closing Costs 2026

Exact NJ Realty Transfer Fee rate tables, the 2025 mansion tax changes, buyer agent commission guide after the NAR settlement, senior exemptions, and a free net sheet calculator. Everything a New Jersey home seller needs in one place.

Last updated: February 2026 · By Tang Group Real Estate · 22+ years serving Central NJ

NJ Realty Transfer Fee (RTF) Rate Schedule

The NJ Realty Transfer Fee is a state tax paid by the seller when recording the deed. It applies to virtually every property sale in New Jersey. The rate depends on the total sale price, with two separate schedules: one for homes selling at or below $350,000, and a higher schedule for homes selling above $350,000.

Standard Rates — Sale Price Over $350,000

This applies to most homes in Somerset, Middlesex, and Mercer counties.

Consideration RangeRate per $500Example: $650K Home
First $150,000$2.90$870
$150,001 – $200,000$4.25$425
$200,001 – $550,000$4.80$3,360
$550,001 – $850,000$5.30$1,060
$850,001 – $1,000,000$5.80
Over $1,000,000$6.05
Total RTF for $650,000 home$5,715

Source: NJ Division of Taxation, nj.gov/treasury/taxation/lpt/rtffaqs.shtml. Rates are for no-exemption residential transfers. The RTF has four components (Basic Fee, Additional Fee, Supplemental Fee, General Purpose Fee) whose combined totals produce the rates above.

Standard Rates — Sale Price $350,000 or Under

Consideration RangeRate per $500
First $150,000$2.00
$150,001 – $200,000$3.35
$200,001 – $350,000$3.90

Senior Citizen / Blind / Disabled Partial Exemption

Sellers who are 62 or older, legally blind, or permanently disabled and who occupied the property as their primary residence qualify for a partial exemption that reduces the RTF by roughly 50%. These reduced rates apply regardless of sale price:

Consideration RangeStandard RateSenior/Disabled RateSavings per $500
First $150,000$2.90$1.40$1.50
$150,001 – $550,000$4.25–$4.80$2.15$2.10–$2.65
$550,001 – $850,000$5.30$2.65$2.65
$850,001 – $1,000,000$5.80$3.15$2.65
Over $1,000,000$6.05$3.40$2.65
Example: A 65-year-old selling their primary residence for $650,000 would pay approximately $2,670 in RTF with the senior exemption, compared to $5,715 without — saving about $3,045. To claim this exemption, you must complete and notarize Form RTF-1 (Affidavit of Consideration) at closing.

NJ Graduated Percent Fee (Mansion Tax) — Changed July 2025

Effective July 10, 2025, the NJ "mansion tax" underwent two major changes: the tax shifted from the buyer to the seller, and the rate became graduated based on sale price. Formally called the Graduated Percent Fee (GPF), this is separate from and in addition to the standard RTF above.

Sale PriceRateTax AmountWho Pays
Under $1,000,0000%$0N/A
$1,000,001 – $2,000,0001%$10,000 – $20,000Seller
$2,000,001 – $2,500,0002%$40,000 – $50,000Seller
$2,500,001 – $3,000,0002.5%$62,500 – $75,000Seller
$3,000,001 – $3,500,0003%$90,000 – $105,000Seller
Over $3,500,0003.5%$122,500+Seller
Critical: The rate applies to the entire sale price, not just the amount over each threshold. A property selling for $2,000,001 is taxed at 2% on the full $2,000,001 — not just 1% on the first $2M and 2% on the extra dollar. This creates a cliff at each tier boundary. Unlike the standard RTF, there are no senior citizen or disability discounts on the Graduated Percent Fee.

What changed: Before July 10, 2025, buyers paid a flat 1% fee on properties over $1M. Now sellers pay a graduated 1%–3.5%. For a $1.5M home, this means the seller now pays $15,000 that the buyer used to pay. For a $2.5M home, the seller pays $50,000 — double the old buyer cost of $25,000.

Exempt property types: Vacant land without structures, pure farmland, industrial properties (Class 4B), apartment buildings with 5+ units (Class 4C), and properties owned by nonprofits, schools, churches, or government entities.

NJ GIT Withholding (Exit Tax)

Non-resident sellers and NJ residents who are moving out of state must pay a 2% estimated Gross Income Tax (GIT) withholding on the total sale price at closing. This is filed using Form GIT/REP and is credited toward your NJ income tax return — most sellers get a significant portion back when they file taxes.

Key points: The 2% withholding is not an additional tax — it's a prepayment of NJ income tax on any gain. NJ residents who stay in NJ do not owe this withholding. Non-residents who have already prepaid at a NJ Division of Taxation regional office can present a Nonresident Seller's Tax Prepayment Receipt at closing instead.

Other NJ Seller Closing Costs

CostTypical RangeNotes
Agent commission4.5% – 6%Covers listing agent + buyer agent. Fully negotiable. See commission section below.
Title insurance0.3% or $1,500+Owner's title policy. Rate varies by provider and sale price.
Real estate attorney$950 – $1,600Required in NJ for contract review, title, and closing.
Smoke/CO detector & township certs$150 – $450Required for most residential sales. Fire dept inspection + township certificate of continued occupancy.
Recording, courier & wire fees$200 – $400Deed recording, document courier, and wire transfer fees.
Mortgage payoff & releaseBalance + ~$200Remaining mortgage balance plus lender's release/payoff processing fee.
Seller concessions$0 – 6% of priceNegotiated credits toward buyer closing costs. Limits vary by loan type (FHA: 6%, conventional: 3–9%).
Home warranty (if offered)$400 – $600Optional. Some sellers offer as a negotiating tool.
Prorated property taxesVariesYou pay your share through the closing date. NJ quarterly tax schedule applies.

Calculate Your Net Proceeds

Our free NJ Seller Net Sheet Calculator uses the exact RTF rate tables above, the 2025 mansion tax, and all NJ-specific costs. Enter your sale price and get an instant estimate.

Open Net Sheet Calculator →

Real Estate Commission in NJ After the NAR Settlement

The 2024 NAR settlement changed how buyer agent commissions are handled. Here's what NJ sellers and buyers need to know:

For Sellers

Sellers are no longer required to offer buyer agent commission through the MLS. However, in practice, most NJ sellers still choose to offer a buyer agent fee (typically around 2% in central NJ) because it keeps the buyer pool large and competitive. All commission rates are fully negotiable and not set by law.

As your listing agent, we walk through the options: offer a buyer agent commission upfront (most common and usually most effective), let the buyer negotiate their agent's fee as part of their offer, or structure it as a seller concession toward buyer closing costs. The right approach depends on your market conditions, timeline, and pricing strategy.

For Buyers

Since August 2024, all buyers must sign a written buyer representation agreement before touring homes. This agreement outlines the agent's services and compensation. In the vast majority of NJ transactions, the seller still covers the buyer agent's commission at closing — you get full professional representation without paying your agent out of pocket. If a rare situation arises where a seller won't cover any buyer agent fee, your agent will discuss options before you proceed.

Key fact: All real estate commissions are fully negotiable and not set by law. This was true before the NAR settlement and remains true after. Commission rates vary by market, home value, and service level. The national average total commission in 2026 is approximately 5.5%.

Full-Service vs. Limited-Service vs. FSBO

Limited-Service / Flat-Fee

Commission1%–3% + flat fee
MLS listing
Pro photographySometimes
3D tour / video
Showing coordination✗ You handle
Offer negotiation✗ You handle
Closing managementLimited
Evenings/weekends✗ Often 9-5
Avg sale vs. list93–97%

FSBO (For Sale by Owner)

Commission0% (+ buyer agent?)
MLS listing
Pro photography
3D tour / video
Showing coordination✗ You handle
Offer negotiation✗ You handle
Closing management✗ You handle
Evenings/weekendsDepends
Avg sale vs. list87–93%

Sale vs. list price estimates based on NAR data: FSBO median $380,000 vs. agent-assisted median $435,000, plus University of Iowa study of 260,000 listings showing limited-service homes took 33% longer to sell and were 75% more likely to never sell. Collateral Analytics research estimates discount sellers lost 5–7% comparing similar homes.

Quick Reference: Total Seller Costs by Price

These estimates assume standard (no exemption) RTF rates, 5% total commission, NJ resident staying in state, and typical attorney/title/cert costs. Your actual costs will vary.

Sale PriceRTFCommission (5%)Other Costs*Total Costs% of Price
$400,000$3,215$20,000$3,600$26,8156.7%
$500,000$4,175$25,000$3,600$32,7756.6%
$650,000$5,715$32,500$3,600$41,8156.4%
$800,000$7,305$40,000$3,600$50,9056.4%
$1,000,000$9,575$50,000$3,600$63,1756.3%
$1,500,000$15,625$75,000$3,600$109,2257.3%
(incl. mansion tax)+$15,000

*Other costs include attorney ($1,500), title insurance ($1,500 est.), smoke/CO/certs ($300), recording/courier ($300). Does not include mortgage payoff, seller concessions, prorated taxes, or GIT withholding for non-residents/those leaving NJ.

Free NJ Seller Net Sheet Calculator

Our net sheet calculator on the Home Value Analysis page uses the exact RTF rate tables above, including the 2025 mansion tax changes, senior/disabled partial exemptions, and the GIT/exit tax toggle. It's the most accurate free NJ seller net sheet calculator available online.

Open Calculator →

Want an exact number customized to your property? Our free 50+ page Comparative Market Analysis includes a personalized net sheet with precise comps, actual costs, and a strategy session. Request yours here — no obligation.

About This Guide

This guide is maintained by Tang Group Real Estate, a family-owned brokerage in Central New Jersey serving Montgomery Township, Hillsborough, Princeton, Bridgewater, West Windsor, and surrounding areas since 2003. We hold NJ + NY broker licenses, a commercial license (CCIM), and 20+ consecutive years of Circle of Excellence awards with a 5.0 Google rating across 58+ reviews.

We created this resource because NJ closing costs are complicated and most online calculators get the RTF rates wrong. If you have questions about selling in Central NJ, book a free consultation or call 908-874-5798.