Fill out the form and one of our experienced CPAs will get back to you shortly.
Who pays New York transfer taxes, at what rate, and how they affect your basis. NYS, NYC RPTT, and the buyer paid mansion tax, explained by a New York CPA.
12+
Years Serving NYC
50
States Covered
5★
Rated on Yelp
150,000+
Returns Filed
Open
Evenings & Weekends
Book a consultation
Call (212) 641-0673 or send the contact form. Our team gets back to you within 24 hours, and we are available evenings and weekends. Confidential, and handled by a CPA or EA, not a call center.
A New York closing carries more than one transfer tax, and they are not split down the middle. Buyer and seller each pay a different one.
A typical New York City residential sale carries the state transfer tax, the city transfer tax and the mansion tax. Above $2 million the city supplemental is added, above $3 million an extra state charge, and the mortgage recording tax if financed.
Section 01
| Tax | Rate and threshold | Paid by, per statute |
|---|---|---|
| Tax | Rate and threshold | Paid by, per statute |
| New York State transfer tax | 0.4 percent on all sales, plus 0.25 percent in NYC at $3M residential | Seller |
| NYC transfer tax, RPTT | 1 percent to $500,000, then 1.425 percent | Seller |
| Mansion tax | Flat 1 percent of the whole price, from $1,000,000 | Buyer |
| City supplemental | 0.25 to 2.9 percent, from $2,000,000, NYC only | Buyer |
| Mortgage recording tax | On the financed amount, if financed | Buyer |
Both sides, in the end. Each of these taxes names one payer, and if that payer defaults or is exempt the duty passes to the other. Both then carry joint and several liability.
Tax Law 1404 puts the state transfer tax on the seller and bars shifting it to the buyer except by contract. NYC Admin Code 11-2104 does the same for the city tax. Tax Law 1402-a puts the mansion tax on the buyer.
New York City can docket a judgment against either party. The mansion tax works in reverse: if the buyer fails to pay it, the seller must, and the same joint liability follows.
A buyer who covers the seller's tax has a statutory cause of action against the seller for the tax, the interest and the penalties. Buying from an exempt government body does not remove the tax, because the exemption covers the government and not the buyer.
A contract can move the tax to the other side. That used to raise the tax, because tax paid on the seller's behalf counted as extra consideration.
For a one to three family house, an individual condo or a co-op unit, that grossing up no longer applies.
Section 02
None of these rates is progressive. Crossing a band changes the rate on the entire amount, not just the part over the line.
| Price band | Rate on the whole price |
|---|---|
| Price band | Rate on the whole price |
| Under $1,000,000 | None |
| $1,000,000 to $1,999,999 | 1 percent |
| $2,000,000 and above | 1 percent, plus the city supplemental of 0.25 to 2.9 percent in NYC |
| Property and price band | Rate on the whole price, paid by the seller |
|---|---|
| Residential, $500,000 or under | 1 percent |
| Residential, above $500,000 | 1.425 percent |
| Other property, $500,000 or under | 1.425 percent |
| Other property, above $500,000 | 2.625 percent |
| Property and price | Rate on the whole price, paid by the seller |
|---|---|
| Residential under $3,000,000 | None |
| Residential $3,000,000 and above | 0.25 percent |
| Other property $2,000,000 and above | 0.25 percent |
Mortgage recording tax measures the loan. A large loan on a modest price can cross the threshold when the price stays under it.
| Loan amount | Rate on the whole loan, paid by the buyer |
|---|---|
| Under $500,000 | 1.8 percent |
| $500,000 or more | 1.925 percent |
The lender pays 0.25 percent of that, and a co-op sale carries no mortgage recording tax at all, because co-op shares are personal property.
A sale at $999,999 owes no mansion tax. A sale at $1,000,000 owes 1 percent of the whole million. The same structure repeats at each higher tier, and it repeats in the city transfer tax at $500,000 and in the extra state transfer tax at $3,000,000.
A small change in price near a threshold can move the total cost by far more than the change itself. Model it before the offer is accepted rather than at the closing table.
Send us the price and which side you are on. A few thousand either side of a threshold can move the tax by tens of thousands.
Total transfer tax on a NYC residential sale price
Total transfer tax either side of the one million line
$999,999
$1,000,000
Who pays each transfer tax at a New York City closing
0.4 percent of the price, statewide
Plus 0.25 percent in NYC at $3M or more
1 percent at $500,000 or under
1.425 percent above $500,000
A flat 1 percent from $1,000,000,
charged on the whole price, statewide
NYC only, from $2,000,000
0.25 percent rising to 2.9 percent
Rates and thresholds verified against NYS and NYC publications, August 2026. Not tax advice.
Section 03
A co-op sale transfers shares in a corporation rather than a deed. Transfer tax still applies. New York City taxes the transfer of an economic interest in real property, and co-op sales are squarely within it.
The same logic reaches transfers of entities that hold real property, which is why restructuring an LLC that owns a building is not automatically a tax free move. Our real estate accounting services cover these transfers.
Section 04
Transfer tax changes what you owe on the sale, not only what you pay at the closing.
For a seller, transfer tax paid is a cost of sale. It reduces the amount realized, which reduces the capital gain. For a buyer, mansion tax paid is part of the cost of acquiring the property, so it raises basis and reduces the gain when you sell.
On a $2 million purchase the buyer pays $25,000, being 1 percent mansion tax and 0.25 percent city supplemental. All of it goes into basis.
Owners who never recorded it overstate their gain by that amount years later, and by then the closing statement is usually long gone. Keep it with the deed, and see how to avoid capital gains tax on your property.
Section 05
Tell us the price, the property type, and which side you are on. We will give you the transfer tax figure and show you where it belongs in your basis. Call (212) 641-0673 or send the contact form. No charge for the conversation.
Reviewed by George Dimov, CPA, New York, NY. Serving clients in all 50 states, 15+ years advising buyers and sellers on New York property transactions. President of George Dimov, CPA, a New York City firm serving clients across the five boroughs and nationwide.
No cost to start
Fifteen minutes with a CPA who handles this every week. We will walk you through your options — no sales pitch, no obligation.
“George has prepared and maintained the corporate accounting and provided consultant services for my company for a number of years. He has always done an outstanding, professional and courteous job. I feel that his rates are very fair and he provides a great value for the cost.”
“Excellent service and very professional. George and his team have been handling my business taxes for years and I couldn't be happier with the results. They are always available to answer questions and provide expert advice.”
“I've been working with Dimov CPA for both personal and business taxes. Their attention to detail and knowledge of tax law has saved me thousands. Highly recommend to anyone looking for a reliable CPA in NYC.”
Both, depending on the tax and on whether it gets paid. Tax Law 1404 and NYC Admin Code 11-2104 name a payer for each one, then make the other side liable if that payer defaults or is exempt.
Yes, every dollar of it. Crossing a band sets the rate for the entire purchase, so the cost of that last dollar is the whole tax it triggers.
Yes, at the same rates as a condo or a house. What the buyer acquires is shares and a proprietary lease, and New York taxes that as an interest in the underlying building.
No. It is not a deduction, but it does change your gain. A seller treats it as a cost of sale that reduces the amount realized. A buyer adds mansion tax to basis, which reduces the gain on a later sale. Both show up on your individual tax return.
Make sure to start planning with a professional far ahead of time, maybe six months before, nine months before.
George and his staff were fabulous! I had some questions and he answered all of them. His senior accountant was also very responsive. Literally one day turnaround and was all done on Dropbox and email without having to leave my home office.
Still have a question? Ask a CPA directly or call (212) 641-0673.
Keep reading
Thinking of buying or selling a business? M&A due diligence consulting from a CPA who models the tax structure before you sign, not after the deal closes.
A New York CPA tracks New York tax law changes as they happen. MCTMT rates, 2026 brackets, SALT and PTET, and the remote worker rule that still applies.
A New York CPA on how to offset W2 income with real estate. Short term rentals, material participation, cost segregation, and the traps that undo it all.
Ready when you are
A CPA will review your situation and give you a straight answer. No commitment, no jargon.
