On June 26, 2025, budget committees from both the Senate and Assembly approved a bill (A5804/S4666) to increase the realty transfer fee on property transactions exceeding $2 million. Currently, sales priced at $1 million or more incur a fee of one percent of the sale price. The new legislation proposes raising this fee to two percent for sales over $2 million. Additionally, the percentage will rise with each $500,000 increment in sale price, reaching up to 3.5% for transactions over $3.5 million.
This legislative proposal follows a report by New Jersey Policy Perspective (NJPP) released in fall 2024 that advocated for an increased realty transfer fee on high-priced property sales.
In response to the approval of this measure, New Jersey Policy Perspective issued a statement through Peter Chen, Senior Policy Analyst:
“At a time when so many households are struggling to afford the cost of living in New Jersey, this modest increase in the realty transfer fee will provide critical revenue for the state’s budget while only affecting the top three percent of property sales statewide. These much-needed revenues should go towards making the state more affordable for low- and moderate-income households and supporting affordable housing options for New Jerseyans. Expanding the fee on high-priced property sales ensures that the state’s wealthiest residents and large corporate landholders, rather than low- and middle-income households, contribute their fair share.”
