On May 28, 2026, a four-bedroom house at 26 Bayberry Drive in Saddle River closed at $2,495,000. NJ.com's weekly roundup of Bergen County's most expensive sales ran it under the heading "$2.5 million," and for most purposes the rounding is harmless. For the seller's closing statement it is not. NJ.com's June 22–28 roundup lists the exact price. At that price, New Jersey's Graduated Percent Fee is 2% of the sale, or $49,900. One dollar over $2,500,000 would have moved the whole sale into the 2.5% band, a fee of about $62,500.
That roughly $12,500 jump is a feature of the law. It does not depend on any one negotiation. Since July 10, 2025, the seller has been statutorily responsible for this fee, and the rate applies to the full price. In a town where 2026 sales have mostly landed between $2 million and $4 million, those thresholds fall squarely where Saddle River sellers price, counter and accept.
A fee on the whole price climbs in steps
The New Jersey Division of Taxation lists the Graduated Percent Fee as a percentage "of total consideration." The rate is 1% above $1,000,000 through $2,000,000, then 2% through $2,500,000, 2.5% through $3,000,000, 3% through $3,500,000, and 3.5% above that. The Division's own July 2025 notice gives an example: a $2.75 million deed owes 2.5% of $2.75 million, or $68,750. That notice applies the rate to every dollar of the price, including the first million.
The seller also owes the regular realty transfer fee. Above $1,000,000, that fee is a flat $6.05 per $500, about 1.21% on each added dollar, with no further bands. The transfer fee rises smoothly. The Graduated Percent Fee jumps.
Each threshold price still pays the lower rate, because the law reads "in excess of." Just above each threshold is a range where a higher price leaves the seller with less money after both fees. The figures below are calculated from the Division's published schedule for a standard, non-exempt residential sale.
| Threshold | Fee at the threshold | Fee $1 above it | Step in the fee | Seller nets less than at the threshold until roughly |
|---|---|---|---|---|
| $1,000,000 | $0 | 1% = about $10,000 | about $10,000 | $1,010,200 |
| $2,000,000 | 1% = $20,000 | 2% = about $40,000 | about $20,000 | $2,020,700 |
| $2,500,000 | 2% = $50,000 | 2.5% = about $62,500 | about $12,500 | $2,513,000 |
| $3,000,000 | 2.5% = $75,000 | 3% = about $90,000 | about $15,000 | $3,015,700 |
| $3,500,000 | 3% = $105,000 | 3.5% = about $122,500 | about $17,500 | $3,518,400 |
The $2 million step is the largest relative to its range. For about $20,700 above that line, every added dollar of price costs the seller money.
Where 2026's Saddle River sales sat on those steps
NJ.com's weekly Bergen County roundups capture the county's top sales each week by recording date. That makes them a sample of Saddle River's year, not a complete record. Most of the town's reported sales in that sample fall inside the stepped range.
| Address | Reported price | Reported closing | Band | Graduated Percent Fee |
|---|---|---|---|---|
| 16 Eugene Drive | $2,250,000 | Feb. 6 | 2% | $45,000 |
| 117 Cortland Drive | $2,295,000 | Aug. 31 | 2% | $45,900 |
| 165 Cortland Drive | $2,450,000 | May 26 | 2% | $49,000 |
| 26 Bayberry Drive | $2,495,000 | May 28 | 2% | $49,900 |
| 186 E. Saddle River Road | $2,742,500 | Feb. 5 | 2.5% | $68,562.50 |
| 22 Westerly Road | $2,895,000 | April 15 | 2.5% | $72,375 |
| 16 Old Farms Road | $3,995,000 | Aug. 20 | 3.5% | $139,825 |
| 31 Burning Hollow Road | $4,000,000 | Sept. 8 | 3.5% | $140,000 |
Sources for these sales: NJ.com's roundups for March 2–8, May 11–17, June 15–21, June 22–28, Sept. 21–27, Oct. 5–11 and Oct. 12–18.
Four of the eight sit in the 2% band, between $2.25 million and $2.5 million. The two Cortland Drive sales, $155,000 apart, owed fees about $3,100 apart because they paid the same rate. Moving from 26 Bayberry Drive to 186 E. Saddle River Road adds about $247,500 in price and about $18,660 in Graduated Percent Fee. Much of that difference comes from the half-point rate change at $2.5 million, not from the extra price.
The pair at the bottom of the table shows something else. 16 Old Farms Road at $3,995,000 and 31 Burning Hollow Road at $4,000,000 sit $5,000 apart, and no fee threshold falls between them. Pricing just under $4 million is about round numbers. The tax schedule plays no part there.
Pricing under the line does not settle where the sale closes
A list price sets where bidding starts. It does not set where a deal closes. Across Bergen County in September 2026, single-family sellers received 103.4% of list price on average, according to New Jersey REALTORS®' September 2026 Bergen County report. In Saddle River, NJ.com reported in August on a home that sold for $855,000 over its asking price in less than a week. Its weekly roundup later listed that home, 236 E. Saddle River Road, at $4,750,000 against a $3.895 million list price.
When offers come in above asking, a house listed just under a threshold can be bid straight into the range above it. Take a home listed at $1,995,000 that draws three offers. The figures below combine both state fees under the Division's schedule:
- Offer at $2,000,000: Graduated Percent Fee $20,000, transfer fee about $21,675. The seller keeps about $1,958,325.
- Offer at $2,015,000: Graduated Percent Fee $40,300, transfer fee about $21,857. The seller keeps about $1,952,844, roughly $5,500 less than the lower offer.
- Offer at $2,025,000: Graduated Percent Fee $40,500, transfer fee about $21,978. The seller keeps about $1,962,523, roughly $4,200 more than the first offer.
On a net basis, the middle offer is the weakest of the three. Near each threshold, the useful comparison between offers is what the seller keeps after both state fees, not the headline price. A counteroffer can be built around that math. For example, a seller can accept exactly $2,000,000 or require a figure above the breakeven point.
Above $3.5 million, the steps end
The schedule has no thresholds above $3,500,000. Every sale over that line pays 3.5% on its full price. 2 Alford Drive at $4,125,000 and 5 Burning Hollow Road at $4,350,000, reported in NJ.com's May 4–10 and July 6–12 roundups, owed about $144,375 and $152,250 respectively. The Hamptons-style Dutch Colonial at 23 Denison Drive East, which NorthJersey.com reported sold for $9.25 million in August as New Jersey's highest sale of 2026, carries a Graduated Percent Fee of about $323,750 at that rate.
Above $3.5 million, the fee costs more in total dollars but gives no reason to stop at any particular price. Every added dollar costs about 4.7 cents in combined state fees, with no jumps. The pricing decisions that turn on thresholds sit in the $1 million to $3.5 million range, which is where most of Saddle River's 2026 sample falls.
Who writes the check, and the date that sets the rate
The Division says plainly that the seller is statutorily responsible for both the realty transfer fee and the Graduated Percent Fee. Its published policy guidance also says that once the fee is paid, the State has no interest in who actually paid it. Any agreement between buyer and seller to shift that cost is a matter of contract law, and the Division does not interpret it.
The same guidance says the rate is set by the date the deed is submitted to the county for recording. The contract date does not set it. The transition relief in P.L. 2025, c. 69 required recording by November 15, 2025, so it does not apply to anything closing this winter.
This is general information, not legal, tax or financial advice. How the fee applies to a particular sale, any exemption, or any contract term shifting the cost is a question for your attorney or tax advisor.
What is in force now, and what is only proposed
The Governor's FY 2027 budget proposal, released March 10, 2026, described its tax changes as corporate measures and said it does not raise taxes on individual New Jerseyans. The Division's rate page, last updated September 28, 2026, still lists the graduated bands above.
Assembly bill A2852, introduced in 2026, would repeal the graduated bands and return to a flat 1% fee on transfers over $1 million. As introduced, it is a proposal, and the stepped schedule is what applies to deeds recorded now. For a seller listing this winter, the step table above is the schedule to plan around.
If your Saddle River home's likely value sits near one of these thresholds, the list price and the counteroffer plan should account for those steps from the start. Claudia H. Sanchez can prepare a personalized market consultation that places your home on the 2026 sales ladder and works out what you would keep at each price, before the first offer arrives.
