In New York City, the seller usually pays the two transfer taxes. One is the New York State transfer tax (0.4%, rising to 0.65% on large sales). The other is the NYC Real Property Transfer Tax (1% to 2.625%).
The buyer usually pays:
- the mansion tax, once a home’s price reaches $1 million (1%, rising in steps to 3.9% at $25 million)
- the mortgage recording tax on a loan for a condo or house
- the title insurance premiums
- the City Register recording fees
Co-op buyers skip the mortgage recording tax and usually title insurance, but pay building fees instead. When you buy a new condo from the developer (the sponsor), the contract usually moves the seller’s transfer taxes to you.
This guide covers the five boroughs. It doesn’t cover attorney fees, broker commissions, lender fees, or adjustments for property taxes and common charges. For Westchester County, see Westchester closing costs.
Seller costs: the transfer taxes
New York State transfer tax
The state tax is $2 for each $500 of the price, or part of $500. That is 0.4% (state tax law). In NYC, an extra $1.25 per $500 is added at higher prices, bringing the rate to 0.65%:
- residential property: when the price is $3 million or more
- other property: when the price is $2 million or more
Residential property here means a one-, two- or three-family house, a condo unit or a co-op unit.
NYC Real Property Transfer Tax (RPTT)
The NYC Department of Finance (DOF) charges the RPTT on sales over $25,000, including sales of co-op shares:
| Property | $500,000 or less | Over $500,000 |
|---|---|---|
| Residential (1-3 family, condo, co-op) | 1% | 1.425% |
| All other property | 1.425% | 2.625% |
The higher rate applies to the whole price, not just the part above $500,000. The seller pays, but the buyer owes it if the seller doesn’t pay or is exempt (NYC Tax Appeals Tribunal decision). The return (Form NYC-RPT) is due within 30 days of the transfer.
Together, a seller of a home priced over $500,000 pays 1.825% (0.4% plus 1.425%). At $3 million and up it’s 2.075%. Exemptions, filing and the tax on transfers of ownership interests in companies that own property are in NYC and NYS transfer tax.
What the law says versus what the contract says
The law names the seller, but the state’s who-pays rule lets the contract shift the state tax to the buyer. Resale contracts usually leave transfer taxes with the seller.
New condos are the main exception. Sponsor contracts typically make the buyer pay the sponsor’s state and city transfer taxes (Nixon Peabody, NYLJ, Sept. 2021). That’s contract practice, not law, so read the purchase agreement.
Since July 1, 2021, when a buyer pays the state transfer tax on a home under the contract, that tax is no longer added to the taxable price. This add-on is called the “gross-up.” The change doesn’t apply to the city tax. State tax paid by the buyer still counts as part of the price for the RPTT (Stewart bulletin).
Buyer costs: mansion tax and mortgage tax
The NYC mansion tax: two layers
The basic mansion tax is 1% when a home’s price is $1 million or more (mansion tax law). In NYC only, a second tax is added from $2 million (NYC supplemental tax law). The buyer pays both. If the buyer doesn’t pay or is exempt, the seller must.
| Total price | Combined rate |
|---|---|
| $1M to under $2M | 1.00% |
| $2M to under $3M | 1.25% |
| $3M to under $5M | 1.50% |
| $5M to under $10M | 2.25% |
| $10M to under $15M | 3.25% |
| $15M to under $20M | 3.50% |
| $20M to under $25M | 3.75% |
| $25M or more | 3.90% |
The total price sets the rate, and the rate applies to the full price of the home, not just the part over a threshold. A $999,999 condo owes no mansion tax. A $1,000,000 condo owes $10,000. Both layers go on Form TP-584-NYC, the state transfer tax return, and are due within 15 days after the deed is delivered.
Mortgage recording tax
If you finance a condo or house, you pay mortgage recording tax on the loan. In NYC the full rate is:
- 2.05% for loans under $500,000
- 2.175% for one- to three-family homes and condo units, on loans of $500,000 or more
On most home loans the lender pays 0.25%. That leaves you paying 1.80% or 1.925%. Rates, the $30 deduction and other property types are in mortgage recording tax in NYC and Westchester. On a refinance, or a purchase where the seller’s lender cooperates, a CEMA can lower it.
Title insurance and recording fees
Title premiums in all five boroughs follow the TIRSA Zone 2 rate manual. By custom the buyer pays for both the owner’s policy and the lender’s policy. When the two are issued together, the lender’s policy costs 30% of the loan rate. See what title insurance costs in NYC and Westchester. Endorsements, municipal searches and recording service charges are separate lines on the title bill.
Deeds and mortgages in Manhattan, Brooklyn, Queens and the Bronx are recorded with the City Register through ACRIS, the city’s online land records system. Staten Island records with the Richmond County Clerk. The DOF recording fees for the four ACRIS boroughs:
| Item | Fee |
|---|---|
| Deed or mortgage, base | $32 |
| Each page | $5 |
| Cover page | $5 |
| Each additional lot | $3 |
| Mortgage tax affidavit | $8 |
| UCC financing statement (e-filed) | $20 |
Every deed also comes with Form RP-5217NYC, a report of the sale for the city’s assessors. Its filing fee is $125 for one- to three-family homes and residential condos and $250 for other property (DOF instructions). By custom the buyer pays to record the deed and mortgage and pays the RP-5217 fee. The seller pays to record the release of its own mortgage (the satisfaction).
Co-op vs condo closing costs
A co-op buyer buys shares in the building’s corporation and a long-term lease (the proprietary lease), not real property. That changes several lines:
- No mortgage recording tax. A co-op loan isn’t a recorded mortgage, so the tax doesn’t apply. The lender files a UCC financing statement instead.
- Lien search, not title insurance. Co-op buyers usually order a lien search on the seller and the unit instead of an owner’s title policy. See buying a co-op: lien search.
- No deed to record. So there are no deed recording fees. But the state transfer tax, RPTT and mansion tax still apply to co-op units.
- Building fees. A co-op may charge a flip tax, a fee on each sale. New York corporation law allows it when the proprietary lease or offering plan provides for it. Those documents also decide whether the buyer or seller pays. Managing agent, transfer agent, application and move-in or move-out fees are set by the building and its agent.
Condo buyers pay the full set: mansion tax, mortgage recording tax, title insurance and recording fees. New condo contracts often add the sponsor’s transfer taxes, the sponsor’s attorney fees and a working capital contribution. Check the closing cost schedule in the offering plan.
Buyer costs: summary
| Charge | Amount | Default payer |
|---|---|---|
| Mansion tax | 1% to 3.9% at $1M+ | Buyer (law) |
| Mortgage recording tax | 1.80% / 1.925% net | Borrower, less lender 0.25% |
| Owner’s title policy | TIRSA rate | Buyer (custom) |
| Loan title policy | 30% of loan rate | Buyer (custom) |
| Deed and mortgage recording | $32 + $5/page + $5 | Buyer (custom) |
| Mortgage tax affidavit | $8 | Buyer (custom) |
| RP-5217NYC fee | $125 / $250 | Buyer (custom) |
| Transfer taxes, sponsor sale | Per contract | Buyer (contract) |
| Co-op lien search, UCC | Per title bill | Buyer (custom) |
Seller costs: summary
| Charge | Amount | Default payer |
|---|---|---|
| NYS transfer tax | 0.4% / 0.65% | Seller (law) |
| NYC RPTT, residential | 1% / 1.425% | Seller (City law) |
| NYC RPTT, other | 1.425% / 2.625% | Seller (City law) |
| Satisfaction recording | ACRIS fee schedule | Seller (custom) |
| Payoff handling fee | Per title bill | Seller (custom) |
| Co-op flip tax | Per building | Per lease or plan |
“Law” or “City law” means the law names who pays. The contract can still shift the cost, and the other side owes it if the named person doesn’t pay or is exempt. “Custom” means no law says who pays.
Worked example: $1,200,000 condo, $960,000 loan
This is a hypothetical resale of a condo unit in Manhattan with a bank loan. It leaves out attorney fees, broker commissions, lender fees, endorsements, searches, adjustments and the per-page recording fees.
Buyer
| Item | Amount |
|---|---|
| Mansion tax: 1% × $1,200,000 | $12,000 |
| Mortgage recording tax, borrower share | $18,480 |
| Owner’s policy (TIRSA rate) | $4,977 |
| Loan policy (issued together) | $1,035 |
| RP-5217NYC fee | $125 |
| Buyer total | $36,617 |
The mortgage tax is $960,000 × 2.175% = $20,880 in total. The lender pays $2,400 (0.25%) and the borrower $18,480 (1.925%). The $30 deduction isn’t taken, because it’s not settled whether it applies to condo units; see the mortgage tax guide. At $1 million or more, the owner’s policy follows the TIRSA rate, with no underwriter’s lower rate. For a co-op, the mortgage tax, title premiums and RP-5217 fee would be replaced by building fees and a lien search.
Seller
| Item | Amount |
|---|---|
| NYS transfer tax: $2 per $500 | $4,800 |
| NYC RPTT: 1.425% × $1,200,000 | $17,100 |
| Seller total | $21,900 |
The seller also pays to record the release of any existing mortgage. In a sponsor sale where the contract puts transfer taxes on the buyer, the buyer would pay the state tax on $1,200,000. The RPTT would be figured on a price grossed up by the seller taxes the buyer pays, including that state tax.
Getting an accurate number for your closing
- Identify the property type: co-op, condo, or one- to three-family house. It changes the mortgage tax, title and recording lines.
- Read the contract’s closing cost clause, especially in a sponsor sale. Read the offering plan or proprietary lease for flip tax and building fees.
- Ask the title company for a pro forma title bill, an advance itemized bill showing taxes, premiums, endorsements, searches and recording fees. In the four ACRIS boroughs, the transfer tax returns are prepared in ACRIS, which works out the taxes due.
- Compare those lines with your Loan Estimate and Closing Disclosure. The taxes and filed premiums should match the formulas above.
For who prepares and collects each item at closing, see who does what at a New York closing.
Details for attorneys and title professionals
- Where the extra state rate comes from. The higher state rate for large NYC sales applies in any city of one million or more people, which in New York means only NYC. The threshold is tested on the price for the entire conveyance. It sits in the same subsection of the state tax law as the base rate. The next subsection is a separate lower rate for transfers to real estate investment trusts.
- Who pays the RPTT. The city’s transfer tax law makes the seller pay and the buyer liable if the seller doesn’t pay or is exempt. The Tax Appeals Tribunal decision linked above applies that rule.
Official sources
- New York Tax Law § 1402 (state transfer tax; additional rate in § 1402(a)(2); § 1402(b) is the REIT rate), § 1402-a (mansion tax), § 1402-b (NYC supplemental tax) and § 1404 (who pays)
- NYS Department of Taxation and Finance, Form TP-584-NYC instructions
- NYC Department of Finance, Real Property Transfer Tax, ACRIS recording fees and RP-5217NYC instructions
- NYC Tax Appeals Tribunal, determination applying Admin. Code § 11-2104
- New York Business Corporation Law § 501(c) (co-op transfer fees)
- Stewart Title, bulletin NY000661a (2021 transfer tax amendment)
- Nixon Peabody, practical implications of the 2021 transfer tax amendment (NYLJ, Sept. 2021)