NJ Division of Taxation - Realty Transfer Fee

Realty Transfer Fee

The State imposes a Realty Transfer Fee (RTF) on the seller of real property for recording a deed for the sale. The RTF is calculated based on the amount of consideration recited in the deed, or in certain instances, the assessed valuation of the property conveyed, divided by the Director's Ratio. The RTF applies to every conveyance of title to real property in New Jersey, unless the deed or transfer meets an exemption. An Affidavit of Consideration for Use by Seller, Form RTF-1 , must be filed with any deed in which a full or partial exemption is claimed from the RTF.

When an application is made to the sheriff of any county for the sale of any real property, whether under execution or pursuant to any writ, judgment or order, a completed Affidavit of Consideration for Sheriff's Deeds (RTF-8 ) must be supplied to the sheriff. This affidavit lists the name of any other mortgagees and other holders of encumbrances and the current balance of all prior mortgages, liens, or encumbrances constituting consideration. The RTF-8 is not an exemption from the RTF.

Exemptions

The RTF does not apply to a deed:

For a consideration of less than $100;
By or to the United States of America, this State, or any instrumentality, agency, or subdivision thereof;
Solely in order to provide or release security for a debt or obligation;
Which confirms or corrects a deed previously recorded;
On a sale for delinquent taxes or assessments;
On partition;
By a receiver, trustee in bankruptcy or liquidation, or assignee for the benefit of creditors;
Eligible to be recorded as an "ancient deed" pursuant to R.S. 46:16-7;
Acknowledged or proved on or before July 3, 1968;
Between husband and wife, or parent and child;
Conveying a cemetery lot or plot;
In specific performance of a final judgment;
Releasing a right of reversion;
Previously recorded in another county and full RTF paid or accounted for, as evidenced by written instrument, attested by the grantee, and acknowledged by the county recording officer;
By an executor or administrator of a decedent to a devisee or heir to effect distribution of the decedent's estate in accordance with the provisions of the decedent's will or the intestate laws of this State;
Recorded within 90 days following the entry of a divorce decree which dissolves the marriage between grantor and grantee;
Issued by a cooperative corporation, as part of a conversion of all of the assets of the cooperative corporation into a condominium, to a shareholder upon the surrender by the shareholder of all of the shareholder's stock in the cooperative corporation and the proprietary lease entitling the shareholder to exclusive occupancy of a portion of the property owned by the corporation.

Realty Transfer Fee Rates

Standard Transactions and New Construction

Total Consideration not Over $350,000

Consideration Over	but not over	Rate/$500
$0	$150,000	$2.00
$150,000	$200,000	$3.35
$200,000	$350,000	$3.90

Standard Transactions and New Construction

Total Consideration Over $350,000

Consideration Over	but not over	Rate/$500
$0	$150,000	$2.90
$150,000	$200,000	$4.25
$200,000	$550,000	$4.80
$550,000	$850,000	$5.30
$850,000	$1,000,000	$5.80
$1,000,000*		$6.05

Senior Citizens or Blind or Disabled Persons; Low and Moderate Income Housing

Total Consideration Not Over $350,000

Consideration Over	but not over	Rate/$500
$0	$150,000	$0.50
$150,000	$350,000	$1.25

Senior Citizens or Blind or Disabled Persons; Low and Moderate Income Housing

Total Consideration Over $350,000

Consideration Over	but not over	Rate/$500
$0	$150,000	$1.40
$150,000	$550,000	$2.15
$550,000	$850,000	$2.65
$850,000	$1,000,000	$3.15
$1,000,000*		$3.40

Additional Fees on Certain Transfers of Real Property Over $1 Million

As a supplemental fee to the RTF, the State imposes a fee on the recording of the deed for the sale of real property when the consideration paid is more than $1,000,000. While the seller pays the RTF, the buyer pays this supplemental fee of 1% of the consideration recited in the deed. This additional fee applies to all deeds where the land conveyed is classified as follows:

Class 2 residential;
Class 3A where the property is a farm (but only if the farmland contains a building or structure intended or suited for residential use);
Class 4A commercial (other than industrial or apartment); and
Class 4C cooperative units.

New Jersey recognizes certain exemptions from the supplemental fee. Information on exemptions is found on Form RTF-1EE, Affidavit of Consideration for Use by Buyer , and must be annexed to every deed for consideration over $1,000,000 and with every commercial property transfer.

Controlling Interest Transfer Tax

The Controlling Interest Transfer Tax (CITT) is imposed on the buyer. The CITT is a 1% fee on the transfer of a controlling interest in an entity that directly or indirectly owns certain real property. The CITT is only imposed if the real property is classified as "4A Commercial" and if the consideration or other valuation of the real property is greater than $1,000,000. The buyer is exempt from the CITT if they pay the additional fee on certain transfers of real property over $1,000,000. More information on exemptions can be found in the instructions to Form CITT-1 .

Applicable Laws and Rules

N.J.A.C. 18:15 , N.J.A.C. 18:16 , N.J.S.A. 46:15-5 et seq., N.J.S.A. 54:15C-1, Chapter 103, P.L. 2007, Chapter 33, P.L. 2006