Is There a Senior Citizen Exemption From New Jersey's Realty Transfer Fee? How Form RTF-1 Works
Published | Posted by Dennis Mark Interdonato
- Downsizing
- Realty Transfer Fee
- Closing Costs
- Home Selling
Yes. New Jersey has a partial exemption from the realty transfer fee for a seller who is 62 or older, legally blind, or permanently and totally disabled, when the home is a one- or two-family residence the seller owns and lives in. It isn't automatic: it's claimed on Form RTF-1, filed with the deed at closing, and every box in the category has to be checked.
I'm Dennis Mark Interdonato with The Dennis Mark Group. The realty transfer fee is one of the bigger checks a New Jersey seller writes at closing, and the partial exemption is one of the most searched questions I see from homeowners planning a move. Here's what the State's own form says, so you can raise it with your attorney early.
What is New Jersey's realty transfer fee?
It's a fee the State imposes on the seller for recording the deed. It's based on the price recited in the deed, it applies to every transfer of title unless the deed meets an exemption, and it's paid when the deed is recorded (NJ Division of Taxation). Your attorney or title company calculates it and takes it out of your proceeds at closing.
Who qualifies for the partial exemption?
Form RTF-1, the Affidavit of Consideration for Use by Seller, lists the categories. The partial exemption applies to the sale of a one- or two-family residence owned and occupied by a seller who is one of the following (Form RTF-1):
- A senior citizen, which the form defines as a New Jersey resident age 62 or over
- A blind person, as the form defines legal blindness
- A disabled person: a New Jersey resident who is permanently and totally disabled, unable to engage in gainful employment, and receiving disability benefits under federal or State law
The seller also has to meet every one of these:
- The home was owned and occupied by the seller at the time of the sale.
- The seller is a resident of New Jersey, which the form defines as legally domiciled here when the transfer is made. It names New Jersey voter registration, vehicle registration, a driver's license and a resident tax return as proofs of domicile.
- The property is a one- or two-family residence.
The form also covers low- and moderate-income housing that meets its own set of requirements, which is a separate category.
What if there's more than one owner?
This is where people get tripped up. If the home is owned by joint tenants, all of them must qualify. For a married couple or civil union partners who own the home as tenants by the entirety, only one of them needs to qualify (Form RTF-1). How the deed is titled matters, so pull your deed early.
How much does it save?
The State publishes two rate tables, one standard and one for senior citizens, blind or disabled persons, and low- and moderate-income housing (NJ Division of Taxation). Using those tables:
- On a $450,000 sale, the full fee works out to $3,695 and the reduced fee to $1,710.
- On a $650,000 sale, the full fee works out to $5,715 and the reduced fee to $2,670.
Those are calculations from the State's tables, not quotes. Your attorney or title company figures the actual fee for your deed. Sales over $1 million also carry a separate Graduated Percent Fee with its own affidavit, Form RTF-1EE, so ask your attorney how it applies if your home is in that range.
How do you claim it?
On Form RTF-1, Section 5, "Partial Exemption from Fee." The form warns that all boxes in the category must be checked and that failing to do so voids the claim. The affidavit is signed under oath and recorded with the deed, and the form notes that knowingly making a false declaration is a crime (Form RTF-1).
In practice, your attorney or the title company prepares it with you.
When should you bring it up?
Before you set your closing date, for two reasons:
- Your net. The fee affects what you walk away with, which affects your budget for the next home. It belongs in the numbers from day one, along with your home value.
- Occupancy. The form asks whether the home was owned and occupied by the seller at the time of the sale. If you're downsizing and plan to move into the next home before this one closes, ask your attorney early how that timing affects your claim.
What doesn't the exemption cover?
It's a partial exemption from the realty transfer fee only. It doesn't change capital gains tax, and the Division of Taxation says realty transfer fee exemptions don't apply to the estimated income tax payment a nonresident seller may owe at closing (NJ Division of Taxation). If you're leaving the state, read what happens at closing when you move out of New Jersey.
Frequently Asked Questions
Do both spouses have to be 62 for the reduced realty transfer fee?
Not if they own the home as tenants by the entirety. Form RTF-1 says only one spouse or civil union partner needs to qualify in that case. Joint tenants must all qualify.
Is the senior citizen exemption applied automatically?
No. It's claimed on Form RTF-1, and every box in the category must be checked or the claim is void.
Does it apply to a vacation home or rental?
The form requires a one- or two-family residence owned and occupied by the seller at the time of sale, and the seller must be a New Jersey resident. Ask your attorney about your property.
Who pays the realty transfer fee in New Jersey?
The seller. The State imposes it on the seller for recording the deed.
This is general information, not legal, tax or lending advice. The rules and rates come from Form RTF-1 (Rev. 3/2/22) and the NJ Division of Taxation pages linked above, checked October 10, 2026. Your attorney confirms whether you qualify.
About the author
Dennis Mark Interdonato is a REALTOR® and Master CDRE® who leads The Dennis Mark Group at Keller Williams Realty Ocean Living in Point Pleasant, NJ, helping buyers and sellers throughout New Jersey make their next move, with Monmouth and Ocean County as home base. Read more about Dennis Mark.
Keep reading
- How Dennis Mark plans a downsizing move and the Downsizing Guide
- When I sell my home, do I pay tax?
- What paperwork you need to sell in New Jersey
- Is downsizing worth it? How to run the numbers
- Have a question this didn't answer? Send it to Dennis Mark and it may become the next article.
