New Jersey Real Estate: Still Strong, Even as the Rules Shift

Let’s call it what it is another curveball for New Jersey real estate.

First, we were told buyers would start paying agent commissions. But let’s be honest: in most deals, that cost still finds its way back to the seller one way or another.

Now, New Jersey has rolled out a new progressive mansion tax that puts the responsibility squarely on the seller’s shoulders.

Starting July 10, 2025, any residential property sold for over $1 million will trigger a seller-paid tax, with rates rising up to 3.5% for homes over $3.5 million.

Here’s what it looks like:

Sale PriceSeller Tax RateWhat It Means$1M–$2M1%Status quo$2M–$2.5M2%That’s $40K–$50K out of your proceeds$2.5M–$3M2.5%Getting steeper$3M–$3.5M3%$90K–$105K tax hit$3.5M+3.5%Welcome to six-figure tax territory

So What’s the Impact?

• Buyers get a cleaner deal no mansion tax to account for.
• It may normalize pricing pressure at the top of the market.
• For those in the business, it’s just another line item to model in your numbers.

Bottom Line

For serious operators, this doesn’t change the game it just changes the math.

We’re still bullish on New Jersey. Inventory is tight. Demand is steady. The properties we target are still outperforming expectations.

This new tax? It’s just a price adjustment baked into our due diligence model. That’s why we run conservative numbers from the start.

Yes, the rules are changing but if you’re doing this right, the results don’t have to.