🏡 New Jersey’s “Mansion Tax” Just Got a Major Makeover — and Sellers, this one’s for you.
As of June 30, 2025, NJ lawmakers passed a new state budget that reshapes the real estate landscape for 2026. Here's what you need to know:
📌 What Changed?
The Mansion Tax—originally a 1% fee on homes over $1M, typically paid by the buyer—will now be paid by the seller. And it’s no longer a flat fee. It's tiered, meaning the higher the sale price, the higher the tax.
📊 Why Now?
Back in 2004 when the tax was introduced, $1M was luxury. Today? It’s common, especially in coastal and suburban areas. With NJ’s median home price around $550K, the $1M threshold no longer signals ultra-wealth.
💸 What to Expect:
If you're selling a property over $1M, you’ll now see this tax added to your closing costs. It starts at $10,000 and increases with the sales price. Applies to single-family homes, condos, co-ops, multi-family (1–4 units), and some commercial properties.
🤔 How This Affects You:
If you're planning to list—or even thinking about it—this could impact your net proceeds. Timing, pricing, and prep strategies matter now more than ever.
