Heard a lot about the mansion tax and wondering if it applies when you buy in Wyckoff? If you’re comparing homes across Bergen County and nearby New York suburbs, the rules can feel confusing. This guide breaks down what New Jersey charges at closing, who usually pays, and how it differs from New York so you can budget with confidence. Let’s dive in.
Does New Jersey have a mansion tax?
Short answer: No. New Jersey does not have a statewide 1 percent mansion tax like New York. Instead, New Jersey uses a Realty Transfer Fee (RTF) that applies when a deed transfers. The RTF is based on the sale price and follows a graduated schedule.
For a Wyckoff purchase, that usually means you will not pay a New York style mansion tax. The RTF is typically a seller cost in New Jersey unless your contract says otherwise.
If you buy property located in New York State, including parts of Westchester or New York City in the New York–Jersey City–White Plains metro area, New York’s mansion tax may apply. That tax is usually paid by the buyer.
NJ Realty Transfer Fee explained
The RTF is a statutory fee charged on the conveyance of real property located in New Jersey. It is separate from your other closing costs like title insurance, attorney fees, recording charges, lender fees, and appraisals.
- The fee is calculated on the total consideration (the sale price or value exchanged).
- It follows a graduated schedule, so higher sale prices fall into higher fee brackets.
- The New Jersey Division of Taxation administers the RTF and publishes the current schedule and exemptions.
Who pays the RTF in NJ
By statute, the RTF is assessed against the seller. In a typical Bergen County resale, the seller’s side pays the RTF at closing through the attorney or settlement agent.
Contracts can shift this responsibility. On some new construction deals, builders require buyers to pay the RTF or share certain municipal or recording fees. Always check the purchase agreement so you know what you’re responsible for before you sign.
Exemptions and special cases
New Jersey provides exemptions or special rules for certain transfers. Examples include some transfers between spouses, transfers made without consideration, and certain entity or intra-family transactions. If your purchase involves an LLC, trust, estate, or a larger tax or estate plan, your closing team can help determine if an exemption applies and what documentation is required.
How New York’s mansion tax differs
New York State imposes a one-time mansion tax of 1 percent of the purchase price on residential properties where the consideration exceeds 1,000,000 dollars. This tax is typically paid by the buyer at closing.
New York City also has local transfer taxes that are separate from the state mansion tax. If you buy in NYC, those local charges can stack with the state tax depending on property type and price.
The practical takeaway for Wyckoff buyers is simple: if the property is in New Jersey, you do not pay New York’s mansion tax. If the property is in New York, you likely will if the purchase price is over 1,000,000 dollars.
What this means for Wyckoff buyers
Typical Wyckoff resale (about 800,000 to 3,000,000 dollars)
- Property located in NJ: the seller normally pays the NJ RTF per statute.
- You should not expect a New York style 1 percent mansion tax.
- You’ll budget for your own buyer closing costs, like lender and title fees, appraisal, attorney, homeowners insurance, escrow accounts, and prorated property taxes.
High-end purchase above 1,000,000 dollars in Wyckoff
- The rules are the same as any NJ resale. No New York mansion tax on NJ property.
- The NJ RTF still applies per its schedule and is usually a seller cost unless the contract says otherwise.
- If you negotiate price or concessions, both sides may account for the RTF when finalizing terms.
New construction or builder sales in Bergen County
- Builder contracts often spell out who pays what. Some require buyers to pay the RTF and other municipal or recording fees.
- Review the builder’s agreement closely and get a closing cost estimate early so there are no surprises.
Buying in New York while living or working in Bergen County
- If the property is located in NY and the purchase price exceeds 1,000,000 dollars, the buyer typically owes the 1 percent mansion tax.
- In NYC, local transfer taxes may also apply. Closing counsel will calculate the exact amounts.
Entity and family transfers
- Certain transfers can be exempt from the RTF if they meet the statute’s criteria.
- Coordinate early with your attorney, title company, and the Division of Taxation’s requirements if you think an exemption could apply.
Budget your closing costs
As a Wyckoff buyer, your closing costs are separate from the seller’s RTF. Plan for:
- Lender charges if you finance the purchase
- Appraisal and credit reports
- Title search and title insurance (if used)
- Attorney fees
- Homeowners insurance and prepaid items
- Escrow or impound setup if applicable
- Recording fees for your deed and mortgage
- Prorated property taxes and adjustments
Sellers typically pay the NJ RTF. In practice, high-end transactions can reflect the RTF in the negotiated price or credits. The key is clarity in the contract and a detailed closing statement from your attorney or title company well before settlement.
Planning checklist for Wyckoff buyers
- Confirm the property’s location. NJ versus NY determines whether you’re dealing with the NJ RTF or New York’s buyer-paid mansion tax (plus possible NYC local taxes).
- Read the purchase contract. Identify who is responsible for the RTF and any transfer or recording fees. In NJ, the statutory default is the seller, but contracts can reassign costs.
- Ask for early estimates. Get projected figures for the seller’s RTF and your closing costs from the attorneys or title company.
- Review builder contracts carefully. New construction often shifts the RTF and municipal fees to the buyer.
- Buying in NY over 1,000,000 dollars. Include the 1 percent mansion tax in your budget and ask if NYC local transfer taxes apply.
- Consult your closing professionals. Your title company, attorney, and lender will produce a detailed closing statement to review before settlement.
- Explore exemptions when relevant. Spousal, certain intra-family, or entity transfers may qualify under NJ rules with proper documentation.
- Use negotiation levers. Price, credits, and timing can be adjusted to account for transfer fees in premium deals.
Cross-border perspective for the metro area
In the New York–Jersey City–White Plains region, it’s common to compare listings across the state line. When you do, compare total acquisition costs, not just list prices. A 1,050,000 dollar home in Westchester or NYC may carry a buyer-paid mansion tax and possible local transfer taxes, while a similar 1,050,000 dollar home in Wyckoff will not have the New York mansion tax and will usually place the NJ RTF on the seller.
A side-by-side cost review with your attorney, lender, and title company helps you see the full picture and choose the property that fits your goals and budget.
Work with a local, luxury-focused team
You deserve clear guidance and a smooth closing, especially at the high end of the market. Our team pairs hands-on Bergen County expertise with premium presentation and a cross-market perspective so you can compare NJ and NY options confidently and make the best decision for your next move.
If you’re planning a Wyckoff purchase or exploring options across the border, let’s talk strategy and budget. Connect with The Reitz Group for tailored guidance and a seamless path to closing.
FAQs
Does New Jersey have a 1 percent mansion tax?
- No. New Jersey uses a Realty Transfer Fee on deed transfers, not a 1 percent buyer-paid mansion tax like New York.
Who usually pays the NJ Realty Transfer Fee in Wyckoff?
- The seller is typically responsible by statute, but contracts can assign the fee to the buyer in certain cases.
If I buy a home in Wyckoff over 1,000,000 dollars, do I owe a mansion tax?
- No, not for New Jersey property. You may owe New York’s mansion tax only if the property is located in New York State.
How do I estimate transfer and closing costs for a Wyckoff purchase?
- Ask your attorney or title company for a closing estimate and review the NJ Realty Transfer Fee schedule for the seller side and your expected buyer costs.
What should I watch for with new construction in Bergen County?
- Builder contracts often require buyers to pay the RTF and certain municipal fees, so read the agreement carefully and budget accordingly.
Are there exemptions to the NJ Realty Transfer Fee?
- Yes. Certain transfers, such as some spousal or intra-family transactions, may qualify if they meet statutory criteria and have proper documentation.
