New York Transfer Taxes Overview
New York has multiple transfer taxes that apply to real estate transactions, and understanding them is essential for both buyers and sellers.
New York State Transfer Tax
- Rate: 0.4% of sale price
- Higher rate: 0.65% for residential properties over $3 million
- Paid by: Typically the seller
NYC Transfer Tax
Additional tax for properties in New York City:
- $500,000 or less: 1.0% of sale price
- Over $500,000: 1.425% of sale price
- Paid by: Typically the seller
The Mansion Tax (Buyer Pays)
A graduated tax on residential purchases of $1 million or more:
| Purchase Price | Tax Rate |
|---|---|
| $1M - $2M | 1.00% |
| $2M - $3M | 1.25% |
| $3M - $5M | 1.50% |
| $5M - $10M | 2.25% |
| $10M - $15M | 3.25% |
| $15M - $20M | 3.50% |
| $20M - $25M | 3.75% |
| $25M+ | 3.90% |
Mortgage Recording Tax
Paid by the buyer when financing a purchase:
- NYC: 2.05% on mortgages under $500K; 2.175% over $500K
- Outside NYC: Varies by county, typically 0.5-1%
- CEMA option: May reduce tax by assuming existing mortgage balance
Example: $2M NYC Condo Purchase
- Mansion Tax: $25,000 (1.25%)
- Mortgage Recording Tax ($1.6M loan): $34,800
- Title Insurance: ~$10,000
- Attorney: $3,000
- Buyer's Total: ~$72,800