Trenton, NJ – A million dollars used to be able to buy a mansion in New Jersey. Today, it could just get a family going in some parts of the Garden State. Now, Governor Murphy wants to tax that.
Governor Phil Murphy is eyeing a significant tax increase on high-value home sales in New Jersey, branding properties over $1 million as “mansions” worthy of a heftier levy. As part of his $58.1 billion budget proposal for the fiscal year starting July 1, Murphy aims to boost the state’s “mansion tax” from its current 1% to 2% on sales exceeding $1 million, and to 3% for those topping $2 million. The move, projected to rake in $317 million, comes as housing prices across the state continue their meteoric rise, pushing even modest homes into million-dollar territory.
Under the existing policy, buyers of properties sold for over $1 million pay a 1% “additional fee” on top of the standard realty transfer fee—currently $6.05 per $500, typically shouldered by the seller. Murphy’s plan would double that buyer’s fee for sales between $1 million and $2 million and triple it for anything pricier, framing it as a way to tap into the wealth of New Jersey’s booming real estate market. Critics, however, argue it’s a misnomer to call a $1 million home a “mansion” in today’s economy, especially in a state where starter homes in some towns now breach that threshold…