Real Estate, Land Use & Zoning Articles by Monica Vir

On June 30, 2025, Governor Phil Murphy signed Assembly Bill A5804 (S4666), significantly revising New Jersey’s “mansion tax” with major implications for high-valued real estate transactions. Adopted in 2004, the “mansion tax” imposed a tax equal to 1% of the purchase price of all residential property, and of many types of commercial property, valued at $1 million or more. This newly enacted amendment shifts the tax payment obligation from buyers to sellers and introduces new progressive rates for properties sold over $2 million.

Key Changes Effective July 10th, 2025:

The most significant change is the shift of the “mansion tax” payment responsibility from the buyer to the seller. This tax applies to residential property, many commercial and farm properties, and cooperative units. The traditional Realty Transfer Fee remains in place and continues to be seller-paid.