NJ · #11 by population

Buying a home in New Jersey

Costs and rules that are specific to New Jersey. Main city: Newark.

In short

New Jersey taxes property sales through its realty Transfer Fee, does not require an attorney at closing and requires a seller disclosure form. It forecloses through the courts and is not a community property state.

Calculate for New Jersey

If you buy

New Jersey state transfer tax

Realty Transfer Fee (plus Graduated Percent Fee above $1,000,000): Over $350,000: $2.90 per $500 on the first $150,000, $4.25 on $150,000 to $200,000, $4.80 on $200,000 to $550,000, $5.30 on $550,000 to $850,000, $5.80 on $850,000 to $1,000,000, $6.05 above $1,000,000; plus 1% to 3.5% of total price above $1,000,000.

Price$496,000
State transfer taxnot computed
Who paysThe seller

Default price: the New Jersey median value of owner-occupied homes, $496,000 (Census ACS 2024). Not computed: Banded rate per $500 of consideration. Total consideration over $350,000: $2.90 on the first $150,000, $4.25 on $150,000-$200,000, $4.80 on $200,000-$550,000, $5.30 on $550,000-$850,000, $5.80 on $850,000-$1,000,000, $6.05 above $1,000,000. At or below $350,000 a lower schedule applies: $2.00, $3.35 and $3.90 per $500 in the bands up to $150,000, $200,000 and $350,000. Above $1,000,000 total, add a Graduated Percent Fee on the whole price: 1% to $2,000,000; 2% over $2,000,000 to $2,500,000; 2.5% over $2,500,000 to $3,000,000; 3% over $3,000,000 to $3,500,000; 3.5% over $3,500,000. Who pays: The seller owes the Realty Transfer Fee. For deeds submitted on or after July 10, 2025 the Graduated Percent Fee is also imposed on the seller (before that the 1% fee was buyer-paid). Not included: county and city transfer taxes, recording fees, title insurance and lender charges. New Jersey transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: New Jersey state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

New Jersey in short

Is there a real estate transfer tax in New Jersey?

New Jersey charges a Realty Transfer Fee on every deed, paid by the seller, which is $4,655 on a $550,000 sale. For deeds submitted on or after July 10, 2025, a seller-paid Graduated Percent Fee of 1% to 3.5% of the entire price also applies above $1 million.

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What closing costs does New Jersey law set?

New Jersey's Department of Banking and Insurance tells buyers to expect one-time closing costs of about 3% to 4% of the sale price, and sellers owe the State Realty Transfer Fee, $4,655 on a $550,000 sale.

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How is property tax calculated in New Jersey?

New Jersey taxes real property at assessed value times a local general tax rate. In Newark the 2025 rate is $3.999 per $100 of assessed value, and the average residential bill was $7,641. You can appeal your assessment to the County Board of Taxation by April 1.

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What is the deadline to appeal a property tax assessment in New Jersey?

In New Jersey, file your assessment appeal with the County Board of Taxation by April 1 (or May 1 if the municipality did a revaluation, or within 45 days of the bulk mailing of notices), and appeal a county board judgment to the Tax Court within 45 days.

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Do you need a real estate attorney to close in New Jersey?

The New Jersey statutes, rules and court opinions read do not require a lawyer at a home closing, but when an agent prepares the sale contract both sides get a three business day attorney-review period (N.J.A.C. 11:5-6.2(g), Conley v. Guerrero, 2017).

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What must a home seller disclose in New Jersey?

New Jersey sellers of residential real property must complete the state Property Condition Disclosure Statement, questions 1 through 108, under P.L. 2024, c.32, effective August 1, 2024. All sellers of real property must also answer the flood questions, 109 through 117.

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How does foreclosure work in New Jersey?

New Jersey foreclosures are judicial and go through the Superior Court.

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What first-time home buyer programs does New Jersey offer?

In New Jersey, the New Jersey Housing and Mortgage Finance Agency (NJHMFA) offers up to $15,000 in down payment and closing cost help in Essex County, as a no-interest loan forgiven after five years. First-generation buyers get $7,000 more, for $22,000.

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How much tax when you sell a home in New Jersey?

The federal rule is the same in New Jersey as in every state: if you owned and lived in the home as your main home for at least 2 of the last 5 years, the first $250,000 of gain is excluded, $500,000 for a married couple filing jointly (Section 121, IRS Publication 523). Bought $400,000, sold $750,000: a single owner has $100,000 of taxable gain, $15,000 of federal tax at the 15% long-term rate; a couple filing jointly owes nothing. New Jersey income tax on the gain is not computed here.

Capital gains on a home sale

New Jersey guides

Newark

Buying a home in Newark, New Jersey

Professionals in New Jersey

All states · Federal guides