The new law replaces the flat 1% fee on transfers over USD 1 million with a graduated rate from 1% for transfers under USD 2 million up to 3.5% for transfers above USD 3.5 million.
New Jersey’s governor has signed the Fiscal Year 2026 Budget into law on 30 June 2025, which revises the Controlling Interest Transfer Tax (CITT) applicable to transfers of equity interests in entities owning real property in the state.
Under the new law, the previous flat 1% fee on transfers exceeding USD 1 million has been replaced with a graduated rate, starting at 1% for transfers under USD 2 million and rising to 3.5% for transfers above USD 3.5 million. The CITT liability is also shifted from the buyer to the seller.
The new rates apply to transfers from 10 July 2025.
The flat 1% rate remains for contracts signed before 10 July 2025 if closing occurs by 15 November 2025.
