US Home Sales Tax

Taxes when buying a house in New Jersey

New Jersey does not tax the buyer on a home purchase or on the mortgage. The transfer tax (Stepped scale, about 0.4% to 1.2%, plus 1% to 3.5% above $1 million) is usually paid by the seller.

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Loan amount: $320,000. Some states tax the mortgage, so the loan size changes the result there. Paying cash? Enter 100.

Estimated taxes when you buyNew Jersey ยท Rates verified November 2026
Pay to the order ofState and county tax offices$0

Zero and 00/100 dollars

New Jersey does not tax the buyer on this purchase.

Taxes the buyer pays
Tax on the purchase$0
Total buyer taxes$0

Taxes only. Lender fees, title insurance, flat recording fees and prepaid property tax are separate closing costs.

What a New Jersey home buyer is taxed on

Buyer's taxes
None on the purchase or the mortgage.
Transfer tax
The seller pays the realty transfer fee. Since July 10, 2025 the seller also pays the graduated fee on sales above $1 million, which the buyer used to pay as a flat 1%.
Sales tax
None. A home is real estate, and sales tax does not apply to it.
Official source
New Jersey Division of Taxation, Graduated Percent Fee notice
Last verified

New Jersey buyer taxes at common prices

Purchase priceLoan with 20% downBuyer's taxes
$150,000$120,000$0
$250,000$200,000$0
$400,000$320,000$0
$600,000$480,000$0
$1,000,000$800,000$0

Questions New Jersey buyers ask

Do buyers pay transfer tax in New Jersey?

The seller pays the realty transfer fee. Since July 10, 2025 the seller also pays the graduated fee on sales above $1 million, which the buyer used to pay as a flat 1%.

Is there a mortgage tax in New Jersey?

No. New Jersey does not tax the recording of a mortgage. The county charges only a flat fee to record it.

Is there sales tax when you buy a house in New Jersey?

No. Sales tax applies to goods and some services, and a house is real estate, which no state taxes that way.

How much tax does a buyer pay at closing in New Jersey?

Usually none. On a $400,000 home a New Jersey buyer owes no state or local tax on the purchase itself. Closing costs still include lender fees, title insurance and prepaid property tax.

Selling in New Jersey? Use the New Jersey transfer tax calculator.

Buyer taxes in other states