New Jersey's mansion tax is changing from a 1% surcharge paid by buyers on home sales over $1 million to a tiered system beginning July 10, 2025. This shift places the tax burden on sellers, with rates ranging from 1% to 3.5%, depending on the sale price. A homeowner selling for $3.5 million could face over $47,000 in taxes. The updated tax structure is expected to generate over $550 million annually for public funding initiatives. Many homeowners, especially retirees, may see this as a penalty for selling their properties.
New Jersey's mansion tax is transitioning from a flat fee typically paid by buyers to a tiered system where sellers will pay between 1% and 3.5% of the sale price above $1 million, significantly increasing tax burdens on higher value homes.
The tax change means a homeowner selling a $3.5 million property could owe over $47,000 in state taxes, nearly double the previous buyer's tax under older regulations.
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