New Jersey Real Estate Transfer Tax

When sellers in the state of New Jersey decide to sell their home, at the closing table they will be charged a tax by the state of New Jersey. The tax is paid from the seller's proceeds and is calculated based on the amount of consideration (a.k.a. the selling price) received.

If your house sells for less then $350,000 then the formula for calculating the tax is:

1. $2 for each $500 of consideration up to the first $150,000;

2. $3.35 for each $500 of consideration in excess of $150,000 but not in excess of $200,000;

3. $3.90 for each $500 of consideration in excess of $200,000 but not in excess of $350,000

If your house sells for more then $350,000 then the formula for calculating the tax is:

1. $2.90 for each $500 of consideration not in excess of $150,000;

2. $4.25 for each $500 of consideration in excess of $150,000 but not in excess of $200,000;

3. $4.80 for each $500 of consideration in excess of $200,000 but not in excess of $550,000;

4. $5.30 for each $500 of consideration in excess of $550,000 but not in excess of $850,000;

5. $5.80 for each $500 of consideration in excess of $850,000 but not in excess of $1,000,000;

6. $6.05 for each $500 of consideration in excess of $1,000,000.

If you are a Senior Citizen the State does give you a break and charges you less.

If your house sells for less then $350,000 then the formula for calculating the senior citizen tax is:

1. $ .50 for each $500 of consideration not in excess of $150,000;

2. $1.25 for each $500 of consideration in excess of $150,000 but not in excess of $350,000.

If your house sells for more then $350,000 then the formula for calculating the senior citizen tax rate is:

1. $1.40 for each $500 of consideration not in excess of $150,000;

2. $2.15 for each $500 of consideration in excess of $150,000 but not in excess of $550,000;

3. $2.65 for each $500 of consideration in excess of $550,000 but not in excess of $850,000;

4. $3.15 for each $500 of consideration in excess of $850,000 but not in excess of $1,000,000;

5. $3.40 for each $500 of consideration in excess of $1,000,000.

My experience taking the C.P.A. exam was easier then calculating this formula, so I have given some numbers below for your help with this>

If the: The New Construction The Senior

Sales Price is and ReSale Tax Amount is: Citizen Tax Amount is:

$100,000 $400.00 $100.00

$200,000 $935.00 $275.00

$250,000 $1,325.00 $400.00

$300,000 $1,715.00 $525.00

$350,000 $2,105.00 $650.00

$400,000 $3,215.00 $1,495.00

$450,000 $3,695.00 $1,710.00

$500,000 $4,175.00 $1,925.00

$600,000 $5,185.00 $2,405.00

$700,000 $6,425.00 $2,935.00

$800,000 $7,305.00 $3,465.00

$900,000 $8,415.00 $4,045.00

$1,000,000 $9,575.00 $4,675.00

* These figures are taken from a chart provided and were not calculated by me. They are only estimates and the actual tax will be calculted by the closing coordinator at your closing. This is for information purposes only and should not be deemed reliable. These rates and amounts are subject to change.

I hope this helps home sellers to more accurately calculate the expenses that they will incur when closing on their New Jersey Residence. For more information look on the New Jersey Division of Taxation website by clicking here.