What Does It Cost to Sell a Shore Home in Ocean City, NJ?
Selling a shore home in Ocean City, NJ typically costs 8–10% of the sale price in closing costs, which includes the NJ Realty Transfer Fee (RTF), the NJ Mansion Tax (now paid by sellers on sales over $1 million under a law that changed June 30, 2025), agent commission, and title company fees. On Ocean City’s average sale price of $1.4 million, sellers should expect to pay roughly $100,000–$115,000 in total closing costs before seeing their net proceeds. Non-resident sellers — the majority of Ocean City property owners — also face a 2% state tax withholding at closing, which is reconciled through the tax return but ties up additional cash immediately.
By Matt Giroud | September 17, 2026
Most sellers think about commission when they first run the numbers. That’s a big line item, and it matters. But in New Jersey — and especially in Ocean City, where the average sale price crossed $1.4 million last year — there are other costs that routinely catch sellers off guard.
The one generating the most confusion right now is the Mansion Tax. The rules changed, and not everyone selling this year knows it.
Here’s the full picture, cost by cost, so you can build a realistic net sheet before you list.
The Costs of Selling a Shore Home in Ocean City
The NJ Realty Transfer Fee (RTF)
New Jersey charges sellers a Realty Transfer Fee on every residential property sale. It’s not optional, and it applies regardless of whether you’re a state resident.
- On a $700,000 sale: approximately $8,000–$9,000
- On a $1,000,000 sale: approximately $11,400
- On a $1,400,000 sale: approximately $16,000
- On a $2,500,000 sale: approximately $28,500
The RTF covers the base transfer fee assessed by the state. But for sales over $1 million — which describes essentially every transaction in Ocean City right now — there’s a second charge layered on top.
The NJ Mansion Tax — What Changed in 2025
Prior to June 30, 2025, the Mansion Tax in New Jersey was paid by the buyer on purchases over $1 million. That changed when Governor Murphy signed amendments as part of the state budget. Now, the Mansion Tax is a seller cost.
- $1M – $2M: 1% → $14,000 on a $1.4M sale
- $2M – $2.5M: 2% → $44,000 on a $2.2M sale
- $2.5M – $3M: 2.5% → $70,000 on a $2.8M sale
- $3M – $3.5M: 3% → $99,000 on a $3.3M sale
- $3.5M and above: 3.5% → $140,000 on a $4M sale
One important detail: the rate applies to the entire sale price, not just the amount above the threshold. If you’re selling at $2.1 million, you pay 2% on all of $2.1 million — not just the $100,000 above the $2M line. That distinction matters at the tier boundaries.
In Ocean City, where the average sale hit $1.4 million last year and 42 transactions closed above $3 million, this tax touches virtually every seller on the island. If you last ran your net sheet before mid-2025, it’s worth updating those numbers.
Agent Commission
Commission is still the largest single line item for most sellers. In New Jersey, the seller traditionally pays commission for both the listing agent and the buyer’s agent. Total commission typically runs 5–6% of the sale price.
- At $1,000,000: $55,000–$60,000
- At $1,400,000: $77,000–$84,000
- At $2,500,000: $125,000–$150,000
- At $4,000,000: $200,000–$240,000
Non-Resident Seller Tax Withholding
This one catches a lot of Shore sellers off guard.
If you don’t maintain a full-time New Jersey residence — which describes most Ocean City property owners, since the vast majority use the property as a seasonal or second home — the state withholds 2% of the gross sale price at closing.
- On a $1,400,000 sale: $28,000 withheld
- On a $2,500,000 sale: $50,000 withheld
For more on what out-of-town sellers navigate in this market, see: Selling Your Shore Property When You Don’t Live Nearby
Title Company Fees
Ocean City closings run through a title company — that’s the closing entity in New Jersey. Seller-side title fees typically run $1,500–$3,000 or more, depending on the transaction.
What You’ll Actually Net: Ocean City Price Points Side by Side
Selling at $1,000,000 — RTF: ~$11,400 | Mansion Tax (1%): $10,000 | Commission (5.5%): $55,000 | Title: ~$2,000 | Total costs: ~$78,400 | Net: ~$921,600
Selling at $1,400,000 — RTF: ~$16,000 | Mansion Tax (1%): $14,000 | Commission (5.5%): $77,000 | Title: ~$2,500 | Total costs: ~$109,500 | Net: ~$1,290,500
Selling at $2,500,000 — RTF: ~$28,500 | Mansion Tax (2.5%): $62,500 | Commission (5.5%): $137,500 | Title: ~$3,000 | Total costs: ~$231,500 | Net: ~$2,268,500
Selling at $4,000,000 — RTF: ~$46,000 | Mansion Tax (3.5%): $140,000 | Commission (5.5%): $220,000 | Title: ~$4,000 | Total costs: ~$410,000 | Net: ~$3,590,000
What This Means Before You List
Understanding your costs isn’t just about knowing the math. It shapes real decisions.
If you’re anchoring to a target net number, your list price has to account for the full cost picture — including the Mansion Tax at your specific price point. A seller pricing at $1.9 million thinking they’re paying 1% in Mansion Tax is in a very different position than one pricing at $2.1 million where the rate jumps to 2%.
The Mansion Tax change in 2025 added a material cost that many sellers haven’t factored in yet. If you ran your numbers a year ago or longer, it’s worth revisiting them with current figures before you set your list price.
I’m happy to put together a personalized net sheet for your property. Call or text me anytime at 609-929-2314.
Frequently Asked Questions
Who pays the NJ Mansion Tax when selling a house in Ocean City? Under the rules that took effect June 30, 2025, the seller pays the Mansion Tax on all residential sales over $1 million in New Jersey.
What is the NJ Realty Transfer Fee and how much is it? The NJ RTF is a state charge paid by sellers on every residential sale. On a $1.4M sale, the base RTF runs approximately $16,000.
What are total closing costs for sellers in Ocean City, NJ? Sellers should expect total closing costs of approximately 8–10% of the sale price. On a $1.4M sale, that’s roughly $100,000–$115,000.
Does New Jersey withhold taxes when a non-resident sells a home? Yes. Non-residents face 2% of the gross sale price withheld at closing. On a $1.4M sale, that’s $28,000 withheld.
Do Ocean City sellers have to use a title company? Yes. In New Jersey, real estate closings are handled by a title company. Seller-side fees typically run $1,500–$3,000.
The numbers above are a starting point. Your actual net depends on your sale price, residency status, and transaction terms. Ocean City’s market in 2026 still strongly favors sellers — around 200 active listings on the whole island. If you’re thinking through this for your own situation, I’m happy to walk you through it. Call or text me anytime at 609-929-2314.
About Matt Giroud
Matt Giroud is a REALTOR® with The Anchor Group at Berkshire Hathaway HomeServices Fox & Roach, specializing in Ocean City, NJ and the surrounding South Jersey Shore communities. He grew up in Ocean City and brings genuine local knowledge and a low-pressure approach to helping buyers and sellers navigate one of the most competitive shore markets on the East Coast. Call or text him at 609-929-2314.
