New Jersey's RTF is governed by N.J.S.A. 46:15 and administered by the NJ Division of Taxation.[1] Payment is made to the county clerk or register of deeds when the deed is recorded — there is no separate post-closing filing. The county clerk remits the state's share to Trenton monthly. All deeds require Form RTF-1 (Affidavit of Consideration), even if the transfer is fully exempt from tax.[2]
1 Build the Taxable Consideration
Before any rate is applied, the calculator needs the correct number to tax. New Jersey defines consideration as the total value given by the buyer — not just the cash purchase price. Any mortgage or lien the buyer assumes from the seller is added to the stated price to form the full RTF base under N.J.S.A. 46:15.[1]
For sheriff's sales and deeds-in-lieu of foreclosure, the unpaid mortgage balance is treated as the consideration even if no cash changes hands. If a homeowner hands back the deed with a $180,000 mortgage still outstanding, the RTF is computed on $180,000. The calculator flags this and requires Form RTF-8 for formal foreclosure deeds.[3]
Transfers with no consideration at all — zero cash, no assumed debt — owe no RTF and fall below the $100 filing threshold.[1]
Taxable Consideration = Sale Price + Assumed Mortgage / Liens
Example A — $400,000 Standard Sale in Bergen County
A buyer pays $400,000 cash for a single-family home in Hackensack. No existing mortgage assumed.
Taxable Consideration: $400,000 + $0 = $400,000
Example B — $1,500,000 Residential Sale in Ocean County
A buyer purchases a two-family home in Toms River for $1,500,000. The seller's mortgage is paid off at closing; no debt assumed.
Taxable Consideration: $1,500,000 + $0 = $1,500,000
Had the buyer assumed a $100,000 seller's mortgage, the taxable consideration would rise to $1,600,000 and both RTF and GPF would be computed on that larger base.
2 Choose the Right RTF Rate Schedule
New Jersey uses two separate RTF rate schedules. Most sellers use the Standard Schedule. Sellers who qualify use a much lower Partial Exemption Schedule. The partial schedule applies when the seller is an individual natural person (not a corporation, LLC, or other entity) who meets at least one of these conditions:[1][2]
- Age 62 or older at the time of transfer
- Legally blind or permanently disabled
- The property is certified low- or moderate-income housing
Proof of eligibility — a birth certificate for age, or official certification for disability — must be attached to Form RTF-1 at recording. Entity sellers (LLCs, corporations, trusts) cannot claim this partial exemption even if their individual owners would otherwise qualify.[2]
Example A — Standard Individual Seller (Age 50, No Disability)
Standard Schedule applies. No partial exemption qualifications met.
Example B — Seller Age 68, Individual Owner (Not Through an LLC)
Partial Exemption Schedule applies. The reduced rate will substantially lower the state RTF on the $1.5M sale. Note: the GPF (mansion tax) is unaffected by this partial schedule — it applies at full rates regardless.
3 Calculate the State RTF by Brackets
The RTF is not a single flat percentage. It uses a tiered bracket system where different portions of the sale price are taxed at different rates per $500. The first step is to round the consideration up to the nearest $500 — a $400,100 sale is treated as $400,500. Then the calculator determines which bracket table applies: if rounded consideration is $350,000 or less, a lower table is used; if above $350,000, the entire calculation switches to a higher table — including the tax on the very first dollar.[1]
| Bracket | Standard Rate | Partial Rate (senior/disabled) |
|---|---|---|
| Consideration at or below $350,000 | ||
| First $150,000 | $2.00 per $500 | $0.50 per $500 |
| $150,001 – $200,000 | $3.35 per $500 | $1.25 per $500 |
| $200,001 – $350,000 | $3.90 per $500 | $1.25 per $500 |
| Consideration above $350,000 | ||
| First $150,000 | $2.90 per $500 | $1.40 per $500 |
| $150,001 – $200,000 | $4.25 per $500 | $2.15 per $500 |
| $200,001 – $550,000 | $4.80 per $500 | $2.15 per $500 |
| $550,001 – $850,000 | $5.30 per $500 | $2.65 per $500 |
| $850,001 – $1,000,000 | $5.80 per $500 | $3.15 per $500 |
| Above $1,000,000 | $6.05 per $500 | $3.40 per $500 |
To apply the table: divide each bracket's dollar range by 500 to get the number of "units," multiply by the rate per unit, and sum the results for each bracket the sale price reaches.
Example A — $400,000 Sale, Standard Schedule (Above $350k Table)
Consideration $400,000 — above $350k threshold; use the higher standard table throughout.
First $150,000: 150,000 ÷ 500 = 300 units × $2.90 = $870.00
$150k – $200k: 50,000 ÷ 500 = 100 units × $4.25 = $425.00
$200k – $400k: 200,000 ÷ 500 = 400 units × $4.80 = $1,920.00
Total State RTF = $3,215
Example B — $1,500,000 Sale, Partial Exemption Schedule (Seller Age 68)
Consideration $1,500,000 — above $350k; use the higher partial exemption table.
First $150k: 300 units × $1.40 = $420.00
$150k – $550k: 800 units × $2.15 = $1,720.00
$550k – $850k: 600 units × $2.65 = $1,590.00
$850k – $1M: 300 units × $3.15 = $945.00
>$1M: 1,000 units × $3.40 = $3,400.00
Total State RTF (partial) = $8,075
Without the senior partial exemption, the standard RTF on the same $1.5M sale would be $15,625. The partial exemption saves this seller $7,550 in state RTF alone.
4 Apply the Graduated Percent Fee for Residential Sales Over $1M EFFECTIVE 7/10/2025
On top of the bracket-based RTF, New Jersey imposes a separate Graduated Percent Fee (GPF) on high-value residential sales. Originally a flat 1% "mansion tax" paid by the buyer, this fee became graduated and seller-paid effective July 10, 2025.[4]
The GPF applies only when two conditions are both met: (1) the property is Class 2 residential — a one- or two-family home, a cooperative unit, or a farm with a principal residence — and (2) total consideration exceeds $1,000,000. Commercial buildings, apartment buildings with three or more units, and industrial properties do not trigger the GPF regardless of price.[1][4]
The rate is applied to the entire sale price, not just the amount above $1 million. A $2,200,000 sale is taxed at 2% on the full $2,200,000 — not just on the $1,200,000 above the threshold.
| Total Consideration | GPF Rate (applied to full amount) |
|---|---|
| $1,000,001 – $2,000,000 | 1.0% |
| $2,000,001 – $2,500,000 | 2.0% |
| $2,500,001 – $3,000,000 | 2.5% |
| $3,000,001 – $3,500,000 | 3.0% |
| Above $3,500,000 | 3.5% |
Example A — $400,000 Residential Sale (GPF Does Not Apply)
Consideration $400,000 — below the $1,000,000 GPF threshold.
GPF = $0
Example B — $1,500,000 Residential Sale, Ocean County (GPF Applies)
Two-family home, $1,500,000 — bracket $1M–$2M, rate 1.0%.
$1,500,000 × 1.0% = $15,000 GPF SELLER PAYS
The seller's age and partial RTF schedule do not reduce the GPF. It applies to the full $1,500,000 regardless. Form RTF-1EE must be filed alongside RTF-1 at recording.[5]
5 Add the County Grantor Transfer Tax
In addition to the state RTF and GPF, most New Jersey counties impose their own grantor transfer tax on the same consideration, collected by the county clerk at the time of recording.[6] The vast majority of counties charge a flat 1%. Five counties impose no county tax. Atlantic County uses a unique two-tier structure. Jersey City (within Hudson County, which has no county tax) adds its own 1% municipal transfer tax.
| County | County Transfer Tax Rate |
|---|---|
| Atlantic | 1.0% on first $300,000 + 2.5% on amount above $300,000 |
| Bergen, Camden, Cape May, Cumberland, Essex, Hunterdon, Mercer, Monmouth, Morris, Ocean, Passaic, Salem, Somerset, Union, Warren | 1.0% flat |
| Burlington, Gloucester, Middlesex, Sussex, Hudson County | 0% — No county transfer tax |
| Jersey City (Hudson County municipality) | 1.0% additional municipal tax |
Example A — $400,000 Sale in Bergen County
Bergen County: 1.0% flat × $400,000 = $4,000 county transfer tax
Example B — $500,000 Sale in Atlantic County (Tiered Rate)
First $300,000: $300,000 × 1.0% = $3,000
$300k – $500k: $200,000 × 2.5% = $5,000
Atlantic County Transfer Tax = $8,000
A flat 1% rate on the same $500,000 would be $5,000. Atlantic County's structure adds $3,000 more in county tax than most other NJ counties.
6 Apply Exemptions and Total Everything Up
With all components calculated, exemptions are applied and the amounts are totalled. New Jersey exemptions fall into two categories: full exemptions that zero out the entire RTF and county tax, and proportional family exemptions that reduce RTF on the taxable fraction only.
Full exemptions (N.J.S.A. 46:15-10) include:[8]
- Spouse / civil union / domestic partner — full RTF and county tax exemption. Form RTF-1 still required.
- Government entity — transfers to or from any U.S., state, or local government are fully exempt from all components.
- Qualifying nonprofit (501(c)(3)) — exempt from state RTF; verify county exemption with the clerk.
- Court orders, probate, and confirmatory deeds — may be exempt depending on whether other consideration passes.
- Below $100 — no RTF; Form RTF-1 still required to document the exemption.
Parent-to-child transfers receive a proportional RTF exemption. The RTF is first computed on the full consideration, then multiplied by the taxable fraction (the percentage of the interest being sold to a non-qualifying party). If the entire property goes to a qualifying child, RTF is $0. If 50% goes to a child and 50% to a non-family buyer, the RTF on the full amount is halved. The GPF is never reduced by the parent-child exemption — it applies to the full consideration even when RTF is fully exempt.[8]
Total Transfer Tax = State RTF + GPF + County Transfer Tax (Each zeroed out for full-exempt transfers)
Example A — $400,000 Standard Sale, Bergen County (Full Calculation)
Sale price: $400,000 | Bergen County | Standard individual seller | No exemptions | Class 2 residential
State RTF (standard, above $350k): $3,215 SELLER PAYS
GPF: $0 (below $1M threshold)
Bergen County (1.0%): $4,000
Total Transfer Tax Due = $7,215 | Effective rate: 1.804% | Forms: RTF-1
Example B — $1,500,000 Residential Sale, Ocean County, Seller Age 68 (Full Calculation)
Sale price: $1,500,000 | Ocean County | Individual seller age 68 (partial rate) | Class 2 residential | No relationship exemption
State RTF (partial schedule, above $350k): $8,075 SELLER PAYS
GPF (1% — $1M–$2M bracket, effective 7/10/2025): $1,500,000 × 1% = $15,000
Ocean County (1.0%): $15,000
Total Transfer Tax Due = $38,075 | Effective rate: 2.538% | Forms: RTF-1, RTF-1EE
Special Cases Worth Knowing
The "Cliff Effect" at $350,000
Because the RTF uses entirely separate rate tables above and below $350,000 — not a marginal system — crossing this threshold triggers higher rates on every bracket, including the first $150,000. A $349,500 sale uses the lower table; a $350,500 sale uses the higher table for the entire amount. The calculator lets you see both scenarios side by side so you can understand the impact of a small price adjustment at this boundary.
Foreclosure and Deed-in-Lieu Sales
When a lender takes back property through foreclosure, the unpaid mortgage balance is treated as the consideration for RTF purposes. A sheriff's deed with a $320,000 outstanding balance owes RTF on $320,000 even though no cash was paid. Sheriff's deeds require the additional filing of Form RTF-8 to formally report the mortgage balance as consideration.[3]
Mixed Parent-Child and Third-Party Transfers
If a parent sells property to two co-buyers — one child and one unrelated party — only the child's fractional interest qualifies for the RTF exemption. The RTF is computed on the full consideration and then multiplied by the taxable fraction. The GPF, however, is always applied to the full consideration with no family-based reduction.[8]
Nonresident Sellers and GIT Withholding
If the seller is a nonresident individual, New Jersey may require 2% Gross Income Tax withholding collected at closing via Form GIT/REP-1. This is separate from the RTF and represents an advance payment against the seller's NJ income tax liability on any gain realized. Nonresident entity sellers have separate withholding rules.[9]
Filing Requirements and Forms
All RTF payment and paperwork is due at the moment the deed is presented for recording. The county clerk will not accept a deed until the full RTF, GPF, and county transfer tax are paid — typically by certified check or wire.[1]
| Form | Name | When Required |
|---|---|---|
| RTF-1 | Affidavit of Consideration by Seller | Every deed — always required, even for fully exempt transfers |
| RTF-1EE | Graduated Percent Fee Declaration | Class 2 / co-op / farm-residential sales above $1,000,000 |
| RTF-8 | Consideration for Sheriff's Deed | Foreclosure sales / sheriff's deeds |
| GIT/REP-1 | Nonresident Seller GIT Withholding | Nonresident individual sellers (2% withholding may apply) |
| RTF-3 | Claim for Refund | If GPF was overpaid — must be filed within 1 year of recording |
GPF Grace Period: If a sale contract was signed before July 10, 2025 but the deed is recorded on or after that date, the seller may apply the old flat 1% GPF rate and claim a refund of excess paid under the new rates via Form RTF-3, filed within one year of recording. The calculator flags this when a recording date before July 10, 2025 is entered.[4]
References
- N.J.S.A. 46:15 — New Jersey Realty Transfer Fee Statute.
The foundational statute establishing the RTF, its tiered rate schedules, the definition of consideration (including assumed mortgages), the $100 filing threshold, rate tables for both standard and partial exemption schedules, and the seller's obligation to pay at recording. Governs all aspects of the state RTF.
NJ Legislature: law.justia.com — N.J.S.A. 46:15-5 - NJ Division of Taxation — Form RTF-1 (Affidavit of Consideration by Seller) Instructions.
Official instructions covering the standard and partial (senior/disabled/low-income) rate schedules, affidavit requirements for partial exemptions, proof of age and disability documentation, and how to claim exemptions listed in N.J.S.A. 46:15-10.
NJ Division of Taxation: nj.gov/treasury/taxation — RTF Forms - NJ Division of Taxation — Form RTF-8 (Consideration for Sheriff's Deed).
Governs RTF reporting for sheriff's deeds and deeds-in-lieu. Establishes that the unpaid mortgage balance is the consideration for RTF purposes on foreclosure transactions.
NJ Division of Taxation: nj.gov/treasury/taxation — RTF Forms - NJ Legislature — Graduated Percent Fee Amendment (Effective July 10, 2025).
The 2025 statutory amendment to N.J.S.A. 46:15 that converted the flat 1% buyer-paid mansion tax into a seller-paid graduated fee ranging from 1.0% to 3.5% applied to the full consideration. Also establishes the grace period for pre-7/10/25 contracts and the RTF-3 refund procedure.
Reference: NJ tax advisories and 2025 legislative session statute - NJ Division of Taxation — Form RTF-1EE (Graduated Percent Fee Declaration).
Required for all Class 2 residential, co-op, and farm-with-residence sales with consideration above $1,000,000. Filed alongside RTF-1 at the county clerk at recording.
NJ Division of Taxation: nj.gov/treasury/taxation — RTF Forms - NJ REALTORS® — Transfer Tax FAQ and County Rate Compilation.
Authoritative practitioner summary of NJ county grantor transfer tax rates for all 21 counties, noting the standard 1% rate, zero-rate counties, and Atlantic County's tiered structure. Also notes Jersey City's additional 1% municipal tax.
NJ REALTORS®: njrealtor.com - Atlantic County Clerk — County Grantor Transfer Tax Tiered Rate.
Atlantic County's local ordinance: 1.0% on first $300,000 of consideration, then 2.5% on the excess. Applies to single- and two-family homes and vacant lots above $300,000. Unique among New Jersey's 21 counties.
Atlantic County Clerk's Office: atlantic-county.org/clerk - N.J.S.A. 46:15-10 — RTF Exemptions.
Lists all full statutory exemptions including spouse/civil union transfers, government entities, 501(c)(3) nonprofits, below-$100 transfers, court-ordered conveyances, and probate distributions. Governs the proportional parent-child exemption and how the taxable fraction is calculated when the transfer includes both exempt and non-exempt parties.
NJ Legislature: law.justia.com — N.J.S.A. 46:15-10 - NJ Division of Taxation — Form GIT/REP-1 (Nonresident Seller GIT Withholding).
Governs the 2% gross income tax withholding applicable to nonresident individual sellers of NJ real property. Separate from the RTF, this withholding is an advance payment against the seller's NJ income tax on any gain. Entity sellers have separate withholding rules.
NJ Division of Taxation: nj.gov/treasury/taxation — Nonresident Sellers