On June 30, the New Jersey Legislature passed its budget, which includes changes in what is commonly known as the “Mansion Tax” for properties with a purchase price of over $1,000,000. They are:
The tax is shifting from the buyer to the seller for properties with a purchase price of over $1 million.
For homes over $2 million, new tiered tax rates will apply — up to 3.5% at the highest price points.
Sellers who go under contract before July 10 and the deed is recorded by November 15 may be eligible for a tax rebate, but the new tax must still be paid upfront.
These changes apply to all closings on or after July 10, 2025, regardless of when the home was listed or went under contract.
These changes go into effect on July 10, 2025. This is a big shift in how real estate is taxed in New Jersey, and it’s important to plan accordingly. The good news? You don’t have to navigate it alone. I’m here to help you. Whether you’re thinking of selling, buying, or just want to know how this change could affect you, contact me.
