The New Seller‑Paid ‘Mansion Tax’: Moorestown Closings

Selling in Moorestown and wondering how New Jersey’s new “mansion tax” will affect your closing? You are not alone. Big changes took effect in 2025, and they can shift thousands of dollars in closing costs to sellers at higher price points. In this guide, you’ll learn who pays, how much, which Moorestown homes are affected, the key dates to watch, and how to plan your net proceeds with confidence. Let’s dive in.

What changed on July 10, 2025

New Jersey replaced the old flat 1% buyer‑paid supplemental fee with a seller‑paid, tiered “Graduated Percent Fee” that increases with price. The seller now owes both the standard Realty Transfer Fee (RTF) and this new graduated fee at recording. You can review the official rules and forms on the New Jersey Division of Taxation’s Realty Transfer Fee page. See the Division’s guidance.

Who pays and when

For deeds recorded on or after July 10, 2025, the seller is responsible for:

• The standard Realty Transfer Fee (RTF).
• The Graduated Percent Fee if the sale price exceeds $1,000,000.

Both fees are collected at recording. Prior to July 10, 2025, the supplemental 1% fee was typically a buyer obligation on qualifying transfers. Review the Division’s summary of responsibility.

Will your Moorestown sale be affected?

Most Moorestown residential sales do not exceed $1,000,000, so many closings here will not trigger the new graduated fee. The change primarily impacts higher‑end single‑family homes, luxury new construction, larger lots, and select move‑up purchases over $1,000,000. Confirm whether your price point crosses the threshold before you list or accept an offer.

The new graduated fee: price tiers

If the deeded consideration exceeds $1,000,000, the Graduated Percent Fee applies to the full sale price at these rates:

• Over $1,000,000 to $2,000,000: 1.0%
• Over $2,000,000 to $2,500,000: 2.0%
• Over $2,500,000 to $3,000,000: 2.5%
• Over $3,000,000 to $3,500,000: 3.0%
• Over $3,500,000: 3.5%

These percentages apply to the entire price, not just the amount above a threshold. Confirm rates on the Division’s RTF page.

Don’t forget the standard RTF

The standard RTF still applies in addition to the graduated fee. For higher‑priced sales, the RTF schedule equates to roughly 1.2% using the published table of $6.05 per $500 of consideration for deeds over $1,000,000. Always use your title company’s exact calculation. See the RTF tables and calculator.

Quick Moorestown examples (rounded)

These samples show the magnitude of state/county transfer components only. Your title company will compute exact figures.

• $1,200,000 sale: Graduated fee 1.0% = $12,000; RTF ≈ $14,520; combined ≈ $26,520. Rates and tables
• $2,200,000 sale: Graduated fee 2.0% = $44,000; RTF ≈ $26,620; combined ≈ $70,620. Rates and tables
• $3,600,000 sale: Graduated fee 3.5% = $126,000; RTF ≈ $43,560; combined ≈ $169,560. Rates and tables

Timing rules and refunds to know

If your contract was fully executed before July 10, 2025, special transition rules may help:

• If the deed is recorded on or before November 15, 2025, the seller can seek a refund for the portion of the new graduated fee that exceeds 1% under the old rule.
• Refunds are processed by the Division of Taxation. You will need specific documentation and must follow deadlines. See county clerk and Division guidance on timing and refunds.

Some contracts signed before July 10, 2025 may still allocate the original 1% to buyers, while any amount above 1% would fall to the seller subject to refund procedures. This is a contract‑specific question. Review the industry summary and consult your attorney or title company.

Paperwork to expect at closing

For sales over $1,000,000, the Division requires an affidavit and may require additional documents for refunds:

• RTF‑1EE: Affidavit of Consideration for the Graduated Percent Fee (filed with deeds over $1,000,000).
• RTF‑3: Claim for Refund (for qualifying pre‑July 10 contracts that recorded by November 15, 2025, where the seller paid above 1%).

Always confirm the latest versions and instructions. Check the Division’s forms and memos. For refund timing and filing tips, industry updates provide helpful detail. See this practitioner overview.

What Moorestown sellers over $1M should do now

• Build it into your net sheet. Add both the standard RTF and the graduated fee to your estimated closing costs so you know your true net.
• Discuss the fee early. Align with your attorney and title company before you accept an offer, especially on timing and any contract allocation.
• Plan for negotiation. Expect buyers to raise the topic; decide in advance how you will address credits, price adjustments, or timing.
• Gather documentation. Keep your fully executed contract, settlement statement, and deed copies organized. This is critical if a refund could apply.
• Confirm recording logistics. If you are close to a deadline, coordinate with your title company and the Burlington County Clerk on delivery and recording.

Buyer and seller negotiation notes

• Price thresholds matter. Small price movements around $1,000,000 or near the tier breakpoints can change the fee materially.
• Credits vs. price changes. A price reduction lowers the fee; a closing credit does not. Run the math before you decide.
• Pre‑July 10 contracts. Clarify who pays the original 1% and who covers any excess. Document the plan for any seller refund filing. See the industry FAQ for context.

Entity deals and the CITT

If you are transferring a controlling interest in a company that owns New Jersey real property, parallel changes may apply under the Controlling Interest Transfer Tax. Confirm applicability before you structure the deal. Read a legal overview of the CITT change.

Ready to talk through your price strategy, timing, and net proceeds for a Moorestown sale over $1,000,000? For clear guidance and a tailored plan, connect with Patty Smith.

FAQs

What is New Jersey’s new seller‑paid “mansion tax”?

• It is a graduated supplemental realty transfer fee owed by the seller on deeds over $1,000,000, collected at recording in addition to the standard Realty Transfer Fee. Learn more from the Division of Taxation.

Does the fee affect most Moorestown home sales?

• No; most Moorestown sales are below $1,000,000, so the graduated fee typically applies only to higher‑priced transactions in town.

How is the graduated fee calculated at closing?

• The percentage is based on the full sale price using published tiers from 1.0% to 3.5%, and it is added to the standard RTF amount. See the official rate table.

What if my contract was signed before July 10, 2025?

• If your deed records by November 15, 2025, the seller may claim a refund of any amount above 1% under the transition rule, subject to documentation and deadlines. Review county and Division guidance.

Which forms and documents should I keep for refunds?

• Keep the fully executed contract, closing disclosure or settlement statement, deed, and file Form RTF‑3 as directed by the Division. Check the Division’s forms.

Does this apply to sales by an LLC or corporation?

• It can; transfers of controlling interests may be subject to a parallel tax with similar graduated rates, so confirm early with your attorney. See a legal overview.