Form TP-584: Real Estate Transfer Tax Return

What This Form Is

Form TP-584 is a mandatory filing for the sale or transfer of real property in New York State, including New York City. It must be completed and submitted within 15 days of closing to calculate and pay legally required taxes. It is a combined return — a single form that simultaneously calculates and reports several taxes for both state and city authorities:

• NYS Real Estate Transfer Tax — levied on the seller.
• NYS Real Estate Transfer Gains Tax — levied on the seller under specific conditions for high-value residential property.
• NYS Mansion Tax — levied on the buyer of residential property priced at $1 million or more.
• NYC Real Property Transfer Tax (RPTT) — applies if the property is in the five boroughs, with separate rates for seller and buyer.

Breakdown of Liability

The Seller is responsible for:

• NYS Transfer Tax: Typically 0.4% of the sale price (for portions under $3M) and 0.65% (for portions over $3M).
• NYS Transfer Gains Tax: An additional 0.25% on residential properties with a sale price of $2M+ and a gain exceeding $2M.
• NYC RPTT (Seller's Portion): 1% (under $500k) or 1.425% ($500k and above) of the sale price.

The Buyer is responsible for:

• NYS Mansion Tax: A sliding-scale tax from 1% to 3.9% on the entire purchase price of residential property over $1M. Always the buyer's responsibility — even if the contract states the seller pays “all taxes.”
• NYC RPTT (Buyer's Portion): 1% of the sale price.

The tax is calculated on the “consideration” — the total value conveyed, including cash, assumed mortgages, and other property. The tax is owed on the higher of the stated consideration or the property's fair market value.

Completing and Filing the Form

1. Preparation: Typically handled by the closing attorney or title company using information from the contract and deed.
2. Signatures: Must be signed by both the seller and buyer under penalties of perjury.
3. Filing & Payment: The buyer's attorney or title agent is responsible for e-filing the form and remitting full payment within 15 days of closing.
4. Proof: A stamped Receipt of Payment (Form TP-584-A) is issued. Retain this document permanently with your closing records.

Certain transfers are exempt from tax (e.g., between spouses, from parent to child). However, the form must still be filed with the applicable exemption code checked. The Mansion Tax applies only to residential property — mixed-use or commercial properties may be exempt.

Penalties for Non-Compliance

• Late Filing: 5% per month (up to 25%) of the tax due.
• Late Payment: 10% penalty plus statutory interest.
• Personal Liability: The state can pursue both seller and buyer for unpaid amounts, even after the sale is complete.

Essential Guidance for Sellers and Buyers

• Budget Accurately: Sellers must account for a significant tax liability. Buyers must budget for the non-financeable Mansion Tax and NYC RPTT as cash due at closing.
• Review the Prepared Form Carefully: Do not sign without verifying all details. You are legally responsible for the information you certify.
• Understand Your Contract: The clause “seller to pay all transfer taxes” does not include the buyer's Mansion Tax liability.
• Secure Proof of Payment: Obtain and safeguard your official Receipt of Payment (TP-584-A).

Frequently Asked Questions

Who is required to sign Form TP-584?

Both the seller (grantor) and the buyer (grantee) must sign the form. It is a joint return, and each party is certifying the accuracy of the information under penalties of perjury.

What happens if the property is sold for $1 to a family member?

The tax is calculated on the “consideration” or the fair market value, whichever is higher. The NYS Department of Taxation and Finance will assess the tax based on the fair market value of the property.

Are there any exemptions from these transfer taxes?

Yes, but they are specific. Common exemptions include transfers between spouses, from parent to child, or as part of a divorce settlement. You must still FILE Form TP-584 and check the appropriate exemption box. Filing is mandatory even if no money is owed.

I am buying a property “subject to” an existing mortgage. How is the purchase price calculated?

The “consideration” includes the amount of any underlying mortgage the buyer is assuming. If you pay $100,000 in cash and take over a $400,000 mortgage, the total consideration for tax purposes is $500,000.

Does the Mansion Tax apply to commercial property?

Generally, no. The NYS Mansion Tax applies only to conveyances of “residential real property.” It typically does not apply to commercial buildings, industrial property, or vacant land.

Our contract says the seller pays “all transfer taxes.” Does that include the Mansion Tax?

No. The Mansion Tax is, by law, the sole liability of the purchaser. New York courts have consistently ruled that standard contract language does not shift the Mansion Tax burden to the seller.

When exactly is the form and payment due?

Form TP-584, along with full payment of all taxes due, must be filed and paid within 15 calendar days of the date of conveyance (the closing date). This is a strict deadline.

What if I make a mistake on the form?

You must file an amended return using a new Form TP-584. Check the “Amended Return” box at the top of the form. If additional tax is owed, you must pay it with the amended return to avoid penalties and interest.

I am transferring my property into my Revocable Trust. Is this taxable?

Usually not. A transfer from an individual to a revocable “grantor” trust is generally exempt from transfer tax. You must still file the form and claim the appropriate exemption.

I am a non-resident seller. Are there special withholding rules?

Yes. The buyer may be required to withhold a portion of the sale proceeds (often 10–15%) for potential state income tax on the gain. This is a separate requirement governed by Form IT-2663.

Does the form need to be filed for a refinance?

No. A refinance is not a transfer of ownership. Therefore, Form TP-584 is not required.