NJ Seller Closing Costs, Line by Line
Sellers usually know the commission and the mortgage payoff. The rest of the closing statement is where the surprises live, and in New Jersey a few of those line items are large. Here is the full list, what each one actually costs, and a calculator that itemizes your own number.
The realty transfer fee, and the change that caught sellers off guard
New Jersey charges a Realty Transfer Fee on every sale, paid by the seller at closing. It is graduated, running from about 0.4 percent to 1.21 percent of the price, and sales over $350,000 use a higher bracket schedule applied to every portion of the price rather than only the excess. On a $700,000 sale the fee is about $6,595.
The bigger item is the graduated fee on sales over $1,000,000. As of July 10, 2025 this became seller-paid, replacing the old buyer-paid one percent mansion tax, and it applies to the entire purchase price rather than the amount above $1M. The rate steps up with price: one percent up to $2M, then two percent, 2.5 percent, three percent and 3.5 percent at the top. On a $1.5M sale that adds about $15,000 on top of roughly $16,200 of regular transfer fee.
That change matters most right at the threshold. A sale at $1,000,000 owes no graduated fee. A sale at $1,000,001 owes roughly $10,000, because the rate applies to the whole price. If your home is likely to land near a million dollars, that cliff is worth discussing before you set a list price.
Sellers who are 62 or older, blind, or disabled, selling a primary residence, qualify for roughly a 50 percent reduction on the Realty Transfer Fee.
What else appears on a New Jersey seller's statement
Commission is the largest single line for most sellers and is negotiated in your listing agreement. Beyond that, the recurring items are an attorney, who in New Jersey handles the contract and closing rather than a title company running it alone, and municipal certificates. Most towns require a smoke detector, carbon monoxide and fire extinguisher certificate before closing, plus a final water and sewer reading. These are small individually but always appear.
Prorations are the line people forget. Property taxes are paid quarterly in New Jersey, so depending on where your closing date falls you either owe the buyer for days you have not yet paid or get credited for days you paid in advance. The same applies to HOA dues and, on an oil-heated home, the fuel left in the tank. Prorations can run either direction, which is why a good net sheet shows them separately rather than burying them in an estimate.
Then there are the deal-specific items: repair credits or concessions negotiated after inspection, payoff processing and per-diem interest from your lender, and a survey if the buyer's title work requires one and you agreed to cover it.
If you will not be a New Jersey resident at closing
Sellers moving out of state run into the GIT/REP withholding, commonly called the exit tax. It is not an extra tax. It is an estimated income tax payment held at closing, equal to the greater of two percent of the sale price or 10.75 percent of the estimated gain, and it is credited against what you actually owe when you file your New Jersey return. If too much was held, you get it back as a refund.
The practical effect is on your cash at closing, not your total tax. The calculator below shows it as a separate holdback rather than a cost, because that is what it is. Our capital gains and exit tax guide covers the exemptions and the primary-residence exclusion in detail.
Your itemized net sheet
Fill in what you know. Transfer fees calculate automatically from the price. Defaults are typical Greater Princeton figures, not quotes, so replace them with your own once you have them.
Estimate only, not legal or tax advice. Confirm exact figures with your attorney or the NJ REALTORS RTF calculator. Capital gains tax, if any, is separate and is not shown here.
What this typically comes to
For a straightforward Greater Princeton sale under $1M, total seller costs excluding the mortgage payoff usually land between six and seven percent of the price: commission does most of that, transfer fee adds roughly one percent, and the rest is a couple thousand dollars of attorney and municipal items.
Above $1M the picture changes because of the graduated fee. A $1.5M sale carries roughly $31,000 in state transfer fees alone, which is about two percent of the price rather than one. Budget accordingly, and if you are near the threshold, ask what the pricing strategy should be before the home goes live.
What are typical seller closing costs in New Jersey?
Excluding the mortgage payoff, most Greater Princeton sellers under $1M pay six to seven percent of the sale price. Commission is the largest part, the Realty Transfer Fee adds roughly one percent, and attorney fees and municipal certificates add a couple thousand dollars. Above $1M the seller-paid graduated fee pushes state transfer costs to about two percent of the price.
Who pays the realty transfer fee in NJ, buyer or seller?
The seller pays it at closing. Sellers who are 62 or older, blind, or disabled get roughly a 50 percent reduction on a primary residence. Since July 10, 2025 the separate graduated fee on sales over $1,000,000 is also seller-paid, replacing the old buyer-paid one percent mansion tax.
Why does a $1,000,001 sale cost so much more than a $1,000,000 sale?
The graduated fee applies to the entire purchase price once the price exceeds $1,000,000, not just the amount above it. So a sale one dollar over the threshold triggers roughly $10,000 in additional fee. If your home is likely to price near a million, that cliff is worth planning around before listing.
Do I pay the NJ exit tax if I am moving out of state?
You are subject to the GIT/REP withholding, which is an estimated income tax payment rather than an extra tax. It is the greater of two percent of the sale price or 10.75 percent of the estimated gain, held at closing and credited against your actual New Jersey tax when you file. If too much was held, you get a refund.
Does the seller pay for title insurance in New Jersey?
Typically no. In New Jersey the buyer pays for their own title insurance policy and for the survey if one is required. The seller's title-related obligation is delivering clear title, which is why payoff letters and any open permits or liens get resolved before closing.
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