New Jersey Real Estate Transfer Tax. What's That??????.

Reblogger Jim Albano
Real Estate Agent with Prudential Damiano Realty

This post is from my friend Leander McClain from Burlington Township, NJ and it provides some really useful information for NJ home sellers regarding the NJ Real Estate Transfer tax.

Original content by Leander McClain

New Jersey Real Estate Transfer Tax

 

One thing that I explain to my clients who are selling their New Jersey Home is that the State of New Jersey imposes a Real Estate transfer tax.  This is a tax imposed on Sellers by the State of New Jersey pursuant to N.J.S.A. 46:15-5 et seq.  This tax was first enacted in 1968.  A reduced Realty Transfer Fee is available to senior citizens, blind persons, and disabled persons on the sale of one-or two-family residences which they own and occupy, and on the sale of low and moderate income housing.

 The calculation is a little complicated, so I have compiled the table below.  This law has been amended several times and I am not a lawyer.  Therefore please note that the actual amount due will be calculated by the title clerk.  The table below is to be used for illustrative purposes only. 

Sales Price Non Exempt and New Construction Senior Citizen/Blind Disabled/Low Income  
$50,000 $200 $50  
$100,000 $400 $100  
$150,000 $600 $150  
$200,000 $935 $275  
$250,000 $1,325 $400  
$300,000 $1,715 $525  
$350,000 $2,105 $650  
$400,000 $3,215 $1,495  
$450,000 $3,695 $1,710  
$500,000 $4,175 $1,925  
$550,000 $4,655 $2,140  
$600,000 $5,185 $2,405  
$650,000 $5,715 $2,670  
$700,000 $6,245 $2,935  
$750000 $6,775 $3,200  
$800,000 $7,305 $3,465  
$850,000 $7,835 $3,730  
$900,000 $8,415 $4,045  
$950,000 $8,995 $4,360  
$1,000,000 $9,575 $4,675

 

If you have any other real estate related questions, feel free to text, email or call me.  I am a Realtor & Real Estate Consultant that specializes in Burlington Township, NJ.

Have a great day

Make THIS year YOUR Best Year Ever

 

 


Leander McClain, Burlington Township Realtor & Real Estate Consultant, EXIT Buyers Plus Realty, 15 E. Broad Street, Burlington, NJ 08016 609-505-6578(cell)
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Rainmaker
1,252,315
Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417
United Real Estate - Addison, TX
Real Service. Real Results. Real Estate

Jim, is there a transfer tax on a three-family dwelling, like my mom's in Passaic?

Jan 10, 2009 12:17 AM #1
Rainer
122,409
Jim Albano
Prudential Damiano Realty - Little Falls, NJ
Team - Jean-Marie Vantuno / Realtors North Jersey Real Estate

Yes Lorrie, fee applies here too. There is a special rate however for seniors. I would check with your tax adviser for details.

Jan 10, 2009 04:09 AM #2
Rainer
136,537
Gayle Balaban
The Best Spot Realty/Waterfront Real Estate/Ooltewah Real E - Chattanooga, TN
E. TN Waterfront Real Estate

JJim I never realized that. Here it is the reverse and the buyer pays a tax related to sale.

Jan 10, 2009 12:19 PM #3
Rainmaker
468,400
Marcy Moyer
eXp Realty of California Silicon Valley Probate, Trust, and Investment Sales - Mountain View, CA
Probate, Trust, and Investment Specialist

Jim,

that is a steep tax! In Calif. most counties charge $1.10 per $1000 which is paid by the seller, and some cities have taxes that are split 50/50 buyer seller. they can vary from $3 to $5 per thousand.

Marcy

Jan 11, 2009 01:22 PM #4
Rainer
122,409
Jim Albano
Prudential Damiano Realty - Little Falls, NJ
Team - Jean-Marie Vantuno / Realtors North Jersey Real Estate

Gayle, many people don't realize exactly what the tax is all about.

Marcy, thanks for the comments. Steep taxes are something we are continually fighting in Jersey.

Jan 12, 2009 02:08 PM #5
Rainmaker
416,486
Mesa, Arizona Real Estate Mesa Arizona Realtor
Homes Arizona Real Estate LLC - Mesa, AZ
AzLadyInRed

Jim, interesting! Arizona did the transfer tax at one time but discontinued it. Hopefully it stays that way. ;-)

Pepper

 

Jan 16, 2009 08:23 AM #6
Rainer
122,409
Jim Albano
Prudential Damiano Realty - Little Falls, NJ
Team - Jean-Marie Vantuno / Realtors North Jersey Real Estate

I wish NJ would discontinue it too Teri.

Jan 16, 2009 02:44 PM #7
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Rainer
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Jim Albano

Team - Jean-Marie Vantuno / Realtors North Jersey Real Estate
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