New Jersey real estate: property tax, closing costs & insurance
New Jersey has the highest effective property tax rate of any state this calculator covers, and layers a graduated seller-paid mansion/realty transfer fee on top — both costs need to be modeled precisely rather than estimated.
Property tax in New Jersey
The effective rate runs about 2.23% of assessed value. Highest effective rate in US.
Transfer tax & closing costs
Graduated RTF seller ~0.4–1.21%; 2025 law shifts mansion tax to seller, 1–3.5% ≥$1M. Recording runs a flat $120. Title insurance is customarily paid by the buyer, with a minimum owner’s premium of $500.
Insurance & capital gains
Shore counties. Ordinary rates; 10.75% >$1M.
Worked example: a $350,000 ARV flip in New Jersey
Six-month hold, $45,000 rehab, 15% target profit margin, all-cash. This is the same reverse waterfall the calculator runs — see it live for your actual property.
- After-repair value$350,000
- Rehab budget−$45,000
- Closing costs — acquisition−$5,875
- Closing costs — disposition−$21,900
- Holding costs, 6 months−$4,294
- Target profit, 15%−$52,500
- Maximum Allowable Offer$220,431
If you’re investing
At New Jersey’s effective rate near 2.2%, property tax alone can be your single largest recurring holding cost — model it before rehab budget, not after, since it can change whether a deal pencils at all.
If this is your home
New Jersey shifted its $1M+ "mansion tax" to a seller-paid, graduated fee in 2025 (1–3.5%) — if you’re on the selling side of a future exit above $1M, budget for this explicitly since it’s easy to underestimate using older, pre-2025 assumptions.
Best suited for: Investors targeting appreciation or rental income high enough to absorb the country’s highest property tax rate.
New Jersey FAQ
Why is New Jersey property tax so high?+
New Jersey relies heavily on local property tax to fund schools and municipal services with relatively little state-level offset, producing an effective rate near 2.2–2.3% of value — the highest among major markets.
Who pays the New Jersey mansion tax?+
As of the 2025 law change, the graduated fee on sales of $1 million or more (1% to 3.5%) shifted to the seller, alongside the existing graduated Realty Transfer Fee that was already seller-paid.
See the exact number for your New Jersey property
Free for your first three properties. No credit card.
Other state guides
Sources: state and county assessor publications, state department of revenue transfer-tax schedules, and title-rate manuals filed with each state’s insurance regulator, effective 2025-01-01. Figures are estimates for planning purposes, not tax or legal advice — confirm with a licensed professional before closing. How the calculator works