Transfer Taxes in NY, NJ and CT: Who Pays and How Much?

Transfer Taxes in NY, NJ and CT: Who Pays and How Much?

On July 10, 2025, New Jersey quietly changed who pays one of the biggest closing costs on a high-end home sale. The old 1% "mansion tax," paid by the buyer, was replaced by a new Graduated Percent Fee paid by the seller, ranging from 1% to 3.5% of the entire sale price on homes over $1 million. A lot of online content, and a surprising number of seller net sheets, still describe the old rule.

Transfer taxes are one of the least-discussed costs of selling a home in the Northeast, and among the easiest to get wrong, because New York, New Jersey and Connecticut each structure them differently. This guide lays out who pays what in each state, where the price "cliffs" are, and how to estimate your number before you sign a listing agreement.

New Jersey: the Realty Transfer Fee and the new Graduated Percent Fee

New Jersey sellers pay two separate charges.

The Realty Transfer Fee (RTF) is seller-paid and graduated: it's calculated per $500 of the sale price, with the rate stepping up as the price moves through higher brackets. Because the brackets are detailed and there are separate reduced schedules, the most reliable way to calculate yours exactly is with the New Jersey Division of Taxation's official fee schedule or a closing attorney's estimate — but as a real example, a typical $475,000 sale (above the $350,000 threshold) owes roughly $1,818: $420 on the first $150,000 plus $2.15 per $500 on the remaining $325,000. A reduced RTF is available for qualifying senior citizens, blind or disabled sellers, and certain low- and moderate-income housing, claimed on the Affidavit of Consideration. If you're a senior selling to move somewhere smaller, our guide to downsizing as an empty nester covers the property-tax programs that shape where you go next.

The Graduated Percent Fee (GPF) took effect July 10, 2025 under the state's FY2026 budget. It's paid by the seller on sales over $1 million, at these rates:

• 1% for sales over $1 million up to $2 million
• 2% from $2 million to $2.5 million
• 2.5% from $2.5 million to $3 million
• 3% from $3 million to $3.5 million
• 3.5% over $3.5 million

The key detail is that the rate applies to the entire price, not just the portion above each threshold. A home that sells for $1.9 million owes a GPF of about $19,000. A home that sells for $2.1 million owes about $42,000, more than double, for a price that's only about 10% higher. The senior and disability reductions that apply to the RTF don't apply to the GPF.

If you're an out-of-state owner selling New Jersey property, there's one more closing-day item. It's not a transfer tax, but it comes out of your proceeds: nonresident sellers generally prepay estimated income tax equal to the greater of 10.75% of the gain or 2% of the sale price, unless an exemption applies. If high carrying costs are part of why you're selling, see our post on why New Jersey property taxes are forcing homeowners to sell.

New York: state tax, the mansion tax, and New York City's extra layers

Outside New York City, the structure is simple:

• State transfer tax: $2 per $500 of the price, or 0.4%, paid by the seller. On a $600,000 sale, that's $2,400.
• Mansion tax: an additional 1% on residential sales of $1 million or more, on the full price, paid by the buyer.

Inside New York City, there are more layers:

• The city's Real Property Transfer Tax is paid by the seller: 1% on residential sales of roughly $500,000 or less and 1.425% above that. (Confirm the exact threshold wording with your attorney or NYC Department of Finance.)
• Residential sales of $3 million or more carry an additional state tax of 0.25%, bringing the state rate to 0.65%, also paid by the seller.
• For buyers, residential purchases of $2 million or more carry a supplemental tax on top of the 1% mansion tax, so the buyer's total ranges from 1% to 3.9%.

Put together, a New York City seller's combined transfer tax on a typical residential sale runs roughly 1.4% at the lower end and about 1.825% for most sales between $500,000 and $3 million. Some localities outside the city have their own transfer taxes as well, so ask your attorney whether your town is one of them.

Connecticut: state conveyance tax plus a town tax

Connecticut's seller-paid state conveyance tax on residential property is tiered, and unlike New Jersey's, each rate applies only to the portion of the price within that tier:

• 0.75% on the first $800,000
• 1.25% on the portion from $800,000 to $2.5 million
• 2.25% on the portion above $2.5 million

Sellers also pay a municipal conveyance tax of 0.25% in most towns, and up to 0.5% in designated "targeted investment communities" such as Bridgeport, Hartford, New Haven, Norwalk, Stamford and Waterbury.

On a $500,000 sale in a typical town, that's $3,750 in state tax plus $1,250 in town tax, or about $5,000 total. Combined rates generally fall between about 1% and 2.75%, depending on price and town.

A note for Florida sellers

Florida doesn't have a tax called a "transfer tax," but it does charge a documentary stamp tax on deeds that works the same way: $0.70 per $100 of the price in every county except Miami-Dade, where it's $0.60 per $100 (plus a $0.45 per $100 surtax on transfers of property other than a single-family home). All parties are legally liable, but by custom the seller pays in most counties. On a $300,000 sale outside Miami-Dade, that's $2,100.

Transfer Taxes at a Glance

Transfer taxes are only one piece of your net. If you bought recently, see what else changes in selling a home you bought less than two years ago, and if the property is a second home, see selling a vacation home at the Jersey Shore or in the Catskills. For where these costs land in the timeline, our guide to what to expect during the closing process helps.

Frequently Asked Questions

Who pays transfer tax in New Jersey?

The seller pays the Realty Transfer Fee. Since July 10, 2025, the seller also pays the Graduated Percent Fee on sales over $1 million, at 1% to 3.5% of the full price. That fee replaced the buyer-paid 1% mansion tax.

How much is the transfer tax on a $500,000 home in Connecticut?

About $5,000 in most towns: $3,750 in state tax (0.75%) plus $1,250 in town tax (0.25%), paid by the seller. Some cities charge 0.5% locally.

Does the buyer or seller pay New York's mansion tax?

The buyer pays the 1% mansion tax on residential purchases of $1 million or more. In New York City, purchases of $2 million or more carry a higher, tiered rate of up to 3.9%.

Does Florida have a transfer tax?

Not by that name, but it charges documentary stamp tax on deeds, at $0.70 per $100 in most counties. Sellers customarily pay it.

Are there any exemptions or discounts?

New Jersey offers a reduced Realty Transfer Fee for qualifying seniors, blind or disabled sellers and some low- and moderate-income housing, though not for the Graduated Percent Fee. All three states exempt certain transfers, such as some family and estate transfers. Ask your closing attorney.

Run the Numbers Before You Sign Anything

Transfer taxes are predictable. You can estimate them closely before you list, and in New Jersey, a price just above a GPF threshold can cost you more than it earns. Get a net sheet from your attorney that includes transfer taxes, payoff, commissions and any nonresident withholding, and set your price with the real number in front of you.

At Bluebird Acquisition, we buy homes for cash in New York, New Jersey, Connecticut and Florida, and we'll walk you through a clear net figure (transfer taxes, payoffs and all) before you commit. There are no listing commissions, and you'll know what you're walking away with before closing day.

📞 Call or text us directly at 217-408-2781

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This article is general information, not legal, financial, or tax advice. Laws, processes, and programs vary by state — consult a licensed attorney, CPA, or financial advisor before making decisions about a specific property.