What is the New Jersey Home Sales Tax?
The Realty Transfer Fee,
which we refer to as
the New Jersey
Home Sales Tax, is a
state-imposed fee
begun in 1968 as a
nominal charge for
tracking real estate
transactions. It has
increased dramatically in
recent years, adding to
closing costs and the overall price of a home.
Why be concerned about the New Jersey Home Sales Tax now?
The New Jersey State Legislature is
considering further increases to the Home
Sales Tax by permitting individual
municipalities to establish their own fees in
addition to those charged by the state.
How does the New Jersey Home Sales Tax impact home sellers?
Home sellers are perhaps the single group
that will feel the greatest
impact from these
increases. The home
seller typically pays
the Realty Transfer
Fee, which is based
on the sales price of
the property. The
result is an instant
reduction of homeowner
equity.
The added municipal Home Sales Tax will increase the tax on an existing home sold at the state median price of $356,700 by 13%. 295 Pierson Ave., Edison, NJ 08837 732-494-5616 © 2007 New Jersey Association of REALTORS®. All Rights Reserved. How does the New Jersey Home Sales Tax impact home buyers?
Some home sellers will pass along the cost of
the Home Sales Tax to the home buyer. This
inflates the price of homes and make
How much more will I pay when I sell my home?
The current Home Sales Tax due on a home
sold for $356,700 - the median price for an
existing home in New Jersey - is $2,802.
With the extra tax, the Home Sales Tax bill
would increase 13%.
The total Home Sales Tax on an average home will have increased 103% since 2003 if the added local Home Sales Tax is approved. Will this extra tax impact my town?
Yes. The legislation will allow every
municipality to create their own Home Sales
Tax.
Has the New Jersey Home Sales Tax increased over the years?
The New Jersey Home Sales Tax on an
average home has increased 80% since
2003. The extra municipal Home Sales Tax
Visit njhometax.com for more information
and learn what you can do to help stop the
Home Sales Tax increase.
will push the total Home Sales Tax bill up
103% since 2003.
Where can I get more information?
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