The Realty Transfer Fee (RTF)
New Jersey imposes a realty transfer fee on the recording of deeds, calculated on the consideration in graduated brackets. By law and custom the RTF is paid by the seller and collected by the county clerk at recording. Because it is graduated, the effective rate rises with the price—your settlement statement will show the exact calculation.
Partial exemptions
Senior citizens (62+), blind or disabled persons, and low- and moderate-income housing transfers may qualify for reduced RTF rates on their principal residence. The seller claims these on the RTF affidavit of consideration at closing—tell your attorney and title agency early if you may qualify.
The “mansion tax” (supplemental fee)
New Jersey also imposes a supplemental fee on transfers of certain residential and some commercial property with consideration over $1,000,000. Legislation enacted in 2025 changed both who pays and the rate structure for higher-priced transfers, introducing graduated rates above $2,000,000. Because these rules changed recently, confirm the current rate and payer for your contract date with your attorney; we will reflect it correctly on the statement.
Full exemptions
Certain transfers are exempt from the RTF entirely—for example, transfers for nominal consideration, between spouses or parent and child, or pursuant to a divorce judgment. The correct exemption must be stated on the deed and affidavit to be recorded.
How this shows up at closing
The title agency calculates the RTF and any supplemental fee, collects them on the settlement statement, and remits them with the deed at recording. Errors here cause recording rejections, so figures are confirmed with counsel before closing.
Practical tip
Contract price changes—credits, concessions, or re-negotiated figures—can change the transfer fee brackets. Send any amendment to the title agency the day it is signed.
This article is general information about New Jersey real estate transactions and is not legal, tax, or financial advice. Laws, regulations, and fee schedules change; confirm current requirements with your attorney. Crystal Alliance Title is a title insurance agency, not a law firm.
