New Jersey Mansion Tax Update: What Sellers Need to Know in 2025

🏡 New Jersey Mansion Tax Update: What Sellers Need to Know in 2025

As of July 10, 2025, a major change has gone into effect in the New Jersey real estate market—and it’s something every luxury home seller needs to be aware of.

💸 The Big Change: Who Pays the Mansion Tax?

New Jersey’s "Mansion Tax" has long applied to homes sold for $1 million or more, but until now, the buyer was responsible for paying it. That’s changed.

Under the new law, sellers are now responsible for covering this tax at closing.

🧾 Here’s the New Seller Responsibility Breakdown:

• $1 million–$2 million sale price: 1% tax (paid by seller)

• $2 million–$2.5 million: 2%

• $2.5 million–$3 million: 2.5%

• $3 million–$3.5 million: 3%

• $3.5 million and above: 3.5%

If you’re selling a luxury property, this new cost could significantly impact your net proceeds, so it’s important to factor this into your pricing strategy and timeline.

⏳ Already in Contract?

There’s some good news. If you signed a sales contract before July 10, 2025, and close on or before November 15, 2025, you may be eligible for a refund if the tax was paid under the previous rules. Be sure to talk to your title company or attorney for guidance on this.

Why This Matters to Sellers

📉 Higher closing costs: Sellers of higher-end properties will now need to budget for this additional expense.
💼 Strategic pricing: If your property is close to one of the threshold amounts (e.g., $1.95M or $2.45M), it may be worth reviewing pricing with your agent to ensure the tax impact is considered.
📅 Timing counts: If you’re currently under contract, don’t delay—closing before November 15 could save you money.

What It Means for Buyers

While sellers take on the tax burden, buyers may benefit from more predictable closing costs—especially those purchasing homes above the $1 million threshold.

Thinking About Selling?

If you’re considering selling your home—especially one priced over $1 million—let’s connect. I can walk you through how this tax change may affect your bottom line and help you create a listing strategy that keeps you competitive in today’s market.

Give me a call to schedule your complimentary home valuation. 856-780-0915