Closing costs by state
Closing costs in New Jersey
Closing costs in New Jersey run about 2% to 5% of the price for a buyer, made of lender fees, title and settlement, recording, prepaid interest and escrow reserves; on a $400,000 home the worked example below comes to $11,555. New Jersey charges a state transfer tax of Graduated realty transfer fee per $500 of consideration; for sales over $350,000: $2.90 on the first $150,000, $4.25 on $150,000–200,000, $4.80 on $200,000–550,000, $5.30 on $550,000–850,000, $5.80 on $850,000–1,000,000, $6.05 above $1,000,000, about 0.804% of the price, and the seller customarily pays it.
The rules
What New Jersey does differently
- State transfer tax
- Graduated realty transfer fee per $500 of consideration; for sales over $350,000: $2.90 on the first $150,000, $4.25 on $150,000–200,000, $4.80 on $200,000–550,000, $5.30 on $550,000–850,000, $5.80 on $850,000–1,000,000, $6.05 above $1,000,000 (about 0.804% of the price at $400,000).
- Who pays it
- Seller, by custom.
- County and city add-ons
- None; counties collect the state fee. Sales over $1,000,000 carry an additional seller-paid graduated fee of 1% to 3.5%.
- Attorney at closing
- In New Jersey closings are customarily handled by an attorney rather than a title or escrow company, so budget an attorney fee.
- Owner’s title policy
- The buyer customarily pays for the owner’s title insurance policy in New Jersey, along with the lender’s policy.
- Notes
- On a $400,000 sale (over-$350,000 schedule): 300 Ă— $2.90 + 100 Ă— $4.25 + 400 Ă— $4.80 = $3,215, about 0.80%. Reduced rates apply to senior, disabled and low-income sellers. Attorneys customarily close in northern New Jersey, title companies in the south.
Worked example
A $400,000 home in New Jersey, 20% down
Loan of $320,000 at 6.5%, closing on the 15th. Lender, title and recording figures are typical line items used for illustration, the same on every state page; the transfer tax and the owner’s policy side follow New Jersey’s rules above. Not a quote: the calculator takes your own figures.
Buyer pays
| Loan origination, 1% of the loan | $3,200 |
| Appraisal | $550 |
| Title and settlement services | $1,800 |
| Lender’s title policy | $900 |
| Recording | $150 |
| Prepaid interest, 15 days at 6.5% | $855 |
| Escrow reserve, 3 months of tax at 1.1% | $1,100 |
| First year of homeowners insurance | $1,500 |
| Owner’s title policy (estimate) | $1,500 |
| Total (2.889% of price) | $11,555 |
Seller pays
| Commission, 5% | $20,000 |
| Title and escrow fees | $2,000 |
| Prorated property tax | $1,500 |
| Transfer tax, seller’s share (0.804%) | $3,216 |
| Total | $26,716 |
Questions
What people ask about New Jersey
- Who pays the transfer tax in New Jersey?
- New Jersey charges a state transfer tax of Graduated realty transfer fee per $500 of consideration; for sales over $350,000: $2.90 on the first $150,000, $4.25 on $150,000–200,000, $4.80 on $200,000–550,000, $5.30 on $550,000–850,000, $5.80 on $850,000–1,000,000, $6.05 above $1,000,000, about 0.804% of the price, and the seller customarily pays it.
- Do you need an attorney to close on a house in New Jersey?
- In New Jersey closings are customarily handled by an attorney rather than a title or escrow company, so budget an attorney fee.
- Who pays for the owner’s title policy in New Jersey?
- The buyer customarily pays for the owner’s title insurance policy in New Jersey, along with the lender’s policy.
- How much are seller closing costs in New Jersey?
- On a $400,000 sale with a 5% commission, the worked example on this page comes to $26,716 for the seller, including $3,216 of transfer tax, before the mortgage payoff and any concessions or repairs. The seller net sheet calculator shows the walk-away figure.
Last reviewed September 8, 2026 by the EstatePass editorial team. Formulas and program limits are checked against the published rules; figures on this page are arithmetic, not market statistics.
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