New Jersey Home Seller's Realty Transfer Fee (RTF)
The New Jersey Realty Transfer Fee (RTF) question comes up on a daily basis with sellers…so, I asked my go-to New Jersey Real Estate Attorney Rosemary Stone-Dougherty to shed some light on this topic:
The New Jersey Realty Transfer Fee (RTF) is essentially a sales tax based on the sale of your home and is paid by the seller. It is strictly calculated off the Deed price of your home and per Statute.
Unfortunately, there is not an easy calculation for this fee, as it is a three step/base calculation based on properties exceeding $250,000, $500,000, etc. It is paid to the County Clerk where the property is located. This fee must be collected at closing and sent in with the Deed or the County Clerk will refuse to record the new Buyer’s Deed (Big Problem!).
There is a discounted RTF for Senior Citizens over 62 years of age, for one or two family homes only, who reside in the property and both spouses must be 62 years or older (if more than one Seller). There is also a discounted rate if the Seller is legally blind.
There is also a NON-Resident RTF for any Seller who is not a resident of New Jersey (ie. shore or vacation homes) that is also due from the Seller in connection with the RTF referenced above, which is at a minimum of 2% of the sales price. So, if you are a non-resident selling your NJ property, this is an Additional fee you will have to pay at closing. Unlike the RTF for residents, this Non-resident fee is sent to the State and a Seller can make an application for a refund or partial refund the following tax year.
This chart should help you figure out where you stand with the sale of your home from $400,000 to $2.5 million.
NJ Division of Taxation
Local Property Tax