Short answer: If you are 62 or older, live in New Jersey, and are selling the one- or two-family home you own and live in, you qualify for a reduced realty transfer fee. You claim it by checking the senior citizen boxes in Section 5 of Form RTF-1 at closing. On a $550,000 sale, that saves $2,515.
This article is general information, not legal or tax advice. Confirm your situation with your real estate attorney or accountant before closing.
New Jersey charges home sellers a realty transfer fee when the deed is recorded. It is one of the larger seller closing costs in the state, and many sellers over 62 pay more than they need to simply because no one checked the right box. Here is who qualifies, how much it saves and exactly how to claim it.
What Is the NJ Realty Transfer Fee?
According to the NJ Division of Taxation, the realty transfer fee is imposed on the seller for recording the deed. It is calculated on the sale price stated in the deed and paid to the county clerk when the deed is recorded. In Morris County, that is the County Clerk’s office at 10 Court Street in Morristown. Your attorney or title company normally collects it from your proceeds at closing. For a full picture of what else comes out of your proceeds, see our guide to NJ seller closing costs.
Who Qualifies for the Senior Citizen Exemption?
The reduced fee, often called the senior exemption, is technically a partial exemption. Form RTF-1 and state law set these requirements:
- Age: the seller is a New Jersey resident aged 62 or older. (Blind and permanently and totally disabled sellers qualify for the same reduced fee.)
- Property type: a one- or two-family residence.
- Owner-occupied: the seller owns and lives in the home at the time of sale.
- NJ residency: the seller is domiciled in New Jersey when the deed transfers. The form lists voter registration, vehicle registration, a driver’s license or a resident tax return as proof.
How the home is titled matters:
- Married couples (tenants by the entirety): only one spouse or civil union partner needs to qualify.
- Joint tenants: every owner must qualify. If one co-owner is under 62, the reduced fee does not apply.
- Trusts: the Division of Taxation says the senior exemption is personal and a trust is not entitled to it. If your home is held in a trust, talk to your attorney well before you list.
How Much Does It Save?
The fee is charged per $500 of the sale price, in brackets. The reduced rates are less than half the standard rates for most of the price. These are the published rates for sales over $350,000, which covers most Morris County homes:
| Portion of the sale price | Standard rate per $500 | Senior (reduced) rate per $500 |
|---|---|---|
| First $150,000 | $2.90 | $1.40 |
| $150,000 to $200,000 | $4.25 | $2.15 |
| $200,000 to $550,000 | $4.80 | $2.15 |
| $550,000 to $850,000 | $5.30 | $2.65 |
| $850,000 to $1,000,000 | $5.80 | $3.15 |
| Over $1,000,000 | $6.05 | $3.40 |
Here is the math on a $550,000 sale:
| Bracket | Standard fee | Senior fee |
|---|---|---|
| First $150,000 (300 units of $500) | $870 | $420 |
| $150,000 to $200,000 (100 units) | $425 | $215 |
| $200,000 to $550,000 (700 units) | $3,360 | $1,505 |
| Total | $4,655 | $2,140 |
That is a $2,515 savings on a single checkbox. On a $1.2 million sale, the base fee drops from $11,995 to $6,035, a savings of $5,960.
What About Homes Over $1 Million?
Since July 10, 2025, sellers of homes over $1 million also pay New Jersey’s graduated percent fee (the former buyer-paid “mansion tax”), starting at 1% of the full price for sales between $1 million and $2 million. The state’s list of exemptions from that fee does not include seniors, so a senior selling a $1.2 million home would still owe the $12,000 graduated fee on top of the reduced base fee. Our post on the NJ mansion tax for sellers covers the higher brackets.
How to Claim It: Form RTF-1
- Tell your attorney early. Mention your age, how the home is titled and that you live there. In New Jersey, the seller’s attorney or title company usually prepares the closing paperwork.
- Complete Form RTF-1, Section 5. RTF-1 is the Affidavit of Consideration for Use by Seller. In Section 5 (“Partial Exemption from Fee”), check Box A for a senior citizen (or Box B for a blind or disabled seller). The form warns that every box in your category must be checked or the claim is void.
- Sign before a notary. The affidavit is sworn and notarized, and it is recorded with the deed.
- Bring proof of residency. Have your driver’s license or another listed proof of NJ domicile ready.
Missed It at Closing? You Can Still Get a Refund
If you qualified but paid the full fee, file Form RTF-3, Claim for Refund, with the Division of Taxation’s Realty Transfer Fee Unit within four years after the fee was paid. Include proof of age, residency or disability and evidence from the deed recording. Only the State portion of the fee is refunded. The form lists the mailing address, email and fax for the Realty Transfer Fee Unit.
If you are 62 or older and planning a move, the transfer fee is only one piece. Our guides to downsizing in North Jersey and Stay NJ, ANCHOR and Senior Freeze cover the rest.
Frequently Asked Questions
At what age do you stop paying the realty transfer fee in NJ?
You never stop paying it entirely, but at 62 a New Jersey resident selling the one- or two-family home they own and live in pays a reduced fee, roughly half the standard rate.
Do both spouses have to be 62 for the senior exemption?
No. If a married couple owns the home as tenants by the entirety, only one spouse needs to qualify. If owners hold title as joint tenants, all of them must qualify.
Can a trust claim the NJ senior realty transfer fee exemption?
No. The Division of Taxation says the senior partial exemption is personal to the seller, and a trust is a separate legal entity that is not entitled to it.
What if I forgot to claim the senior exemption at closing?
You can file Form RTF-3, Claim for Refund, with the Division of Taxation within four years after paying the fee, with proof that you qualified.
Sources
- NJ Division of Taxation: Realty Transfer Fee
- NJ Division of Taxation: Realty Transfer Fee FAQs
- Form RTF-1: Affidavit of Consideration for Use by Seller
- Form RTF-3: Claim for Refund
- NJ Division of Taxation: Graduated Percent Fee Notice
- NJ Division of Taxation: Graduated Percent Fee Exemptions
- N.J.S.A. 46:15-10.1
- Morris County Clerk: Recording Fees
Talk to the MorrisAgent Team
Selling a Morris County home after 62? We will walk you through every closing cost before you list. Call (973) 200-4800, email [email protected], or stop by our office at 518 Main Street, Suite 102, Boonton. No pressure, and no surprises.