Selling in Ocean City, NJ
What it costs to sell an Ocean City home
New Jersey changed the rules in 2025: sellers now pay the mansion tax, and it climbs to 3.5% on the most expensive homes. With the average Ocean City list price around $2 million, here is what to plan for before you list.
The mansion tax
The mansion tax is now the seller's bill
For years, New Jersey buyers paid a 1% "mansion tax" on homes over $1 million. A law signed June 30, 2025 moved it to the seller and added higher tiers. It applies to contracts signed on or after July 10, 2025.
The rate is a flat percentage of the entire sale price, not just the part over each threshold:
| Sale price | Rate | Example |
|---|---|---|
| Over $1 million to $2 million | 1% | $1,800,000 sale: $18,000 |
| Over $2 million to $2.5 million | 2% | $2,200,000 sale: $44,000 |
| Over $2.5 million to $3 million | 2.5% | $2,750,000 sale: $68,750 |
| Over $3 million to $3.5 million | 3% | $3,250,000 sale: $97,500 |
| Over $3.5 million | 3.5% | $4,000,000 sale: $140,000 |
Because the rate applies to the whole price, crossing a line costs real money. A sale at exactly $2,000,000 owes $20,000; a sale at $2,050,000 owes $41,000. We look at where your price lands before we set it, and we factor this into how we weigh offers.
The realty transfer fee
The regular transfer fee still applies
New Jersey's realty transfer fee, paid when the deed is recorded, has always been the seller's cost. It is graduated by sale price, and the mansion tax is in addition to it. Some sellers, such as qualifying seniors and people with disabilities, may pay a reduced fee. The state's realty transfer fee page has the details, and your settlement agent will show the exact figure on your closing statement.
Selling a second home
If you live outside New Jersey
Many Ocean City owners live in Pennsylvania, New York or elsewhere. When a nonresident sells New Jersey property, the state generally requires an estimated income tax payment of 2% of the sale price at or before closing, filed on its GIT/REP forms. It is due even if you have no gain, and it is credited on your New Jersey nonresident tax return, where you settle up the actual tax.
On a $1,500,000 sale, that estimated payment is $30,000. Some sellers qualify for an exemption or waiver, so talk with your attorney or accountant early; it can change how much cash you walk away with at closing.
Paperwork
Other things to line up before closing
Flood disclosure
Since March 2024, New Jersey sellers must answer flood questions on the state's Property Condition Disclosure Statement, including the FEMA flood zone and any past flooding or flood claims. We'll help you fill it out with your first draft contract.
Fire safety certificate
New Jersey sales generally need a certificate from the local fire official showing working smoke alarms, carbon monoxide alarms and a portable fire extinguisher. Schedule it early in summer, when inspectors are busy.
Booked rentals
If the home has summer rentals booked, the contract should say who keeps the rent and deposits and how guests are handled. Investor buyers often see booked weeks as a plus.
Closing costs
Expect your mortgage payoff, prorated property taxes and utilities, attorney or settlement fees and the real estate commission. Ask us for a net sheet with your numbers.
FAQ
Seller costs: common questions
Who pays the mansion tax in New Jersey now?
The seller. Under a law signed June 30, 2025, sellers pay the mansion tax on residential sales over $1 million for contracts signed on or after July 10, 2025. Buyers used to pay it.
How much is the New Jersey mansion tax?
It is a flat percentage of the whole sale price: 1% from just over $1 million to $2 million, 2% to $2.5 million, 2.5% to $3 million, 3% to $3.5 million and 3.5% above $3.5 million. On a $2.2 million sale, that is $44,000.
I don't live in New Jersey. Do I owe tax when I sell my Ocean City home?
Nonresident sellers generally make an estimated New Jersey income tax payment of 2% of the sale price at closing, using the state's GIT/REP forms, even if there is no gain. It counts toward your New Jersey nonresident tax return. Some sellers qualify for an exemption or waiver; ask your attorney or accountant.
Do sellers still pay the realty transfer fee?
Yes. The regular New Jersey realty transfer fee has always been the seller's cost. It is a graduated fee based on the sale price, and the mansion tax is in addition to it.
See your real bottom line
We'll price your home, show you where it lands on the mansion tax tiers and build a net sheet before you decide anything.
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Sources: Morgan Lewis, New Jersey mansion tax changes (July 2025); Troutman Pepper Locke, mansion tax shifts to sellers; NJ Division of Taxation, nonresident sellers; NJ Division of Taxation, realty transfer fee; Reed Smith, flood disclosure law. Updated October 2026. This page is general information, not legal or tax advice; your attorney or accountant can tell you exactly what you will owe.