How to Calculate the NJ 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 called the real estate transfer tax. 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.

You can use the following NJ real estate transfer tax formula or you can use this real estate transfer tax calculator provided by Title Insurance of NJ.

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.

Disclaimer: The information contained in this website is provided as a courtesy, and is not to be construed as legal advice or a legal opinion with  respect to a particular real estate transaction or any matters related thereto. You are strongly encourage to speak to a real estate attorney for your individual situation may not meet the guidelines above.

Common Questions Related to NJ Real Estate Transfer Tax:

What is the legal age of a citizen in NJ? 

The age for a senior citizen discount is 62 at this time.

Angie Perez is a NJ Circle of Excellence award winning real estate agent for Weichert, Realtors in Edison. She sells anywhere from 12-25 houses per year on a consistent basis since 2005. Ms. Perez is primarily a buyer's agent on 60% of her real estate sales where she represents rental income investors, first time home buyers & trade up home buyers of 1-4 family homes within specific towns encompassing 4 NJ counties: Union, Essex, Middlesex and Somerset County. Many of Ms. Perez's clients appreciate her ability to negotiate favorable real estate deals for them. Many of her clients commented that her research abilities, her honesty, her knowledge of local market trends and her proficiency to manage multiple real estate transactions from start to close are some of the reasons why she was hired as their agent of choice. Please call, text or email Angie Perez to ask if she lists or sell in your town. If she can not help you, Ms. Perez would be more than happy to help or refer you to someone who can. Cell: 973-715-6210 email: angie @ njretoday .com

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