New York Closing Costs: Transfer Tax, Mansion Tax & NYC RPTT Guide
New York has one of the most layered real estate transfer tax structures in the country. Buyers and sellers each pay multiple taxes, and New York City adds additional layers on top of state taxes. This guide explains the verified statutory rates.
New York State Transfer Tax
Under NY Tax Law Article 31 (tax.ny.gov), the state real estate transfer tax is:
- $2 per $500 of consideration (0.40%) on conveyances exceeding $500
- Paid by the seller (grantor)
- Applies statewide to all real property conveyances
Source: tax.ny.gov, NY Tax Law Article 31, as of June 2026.
| Sale Price | NY State Transfer Tax (seller pays) |
|---|---|
| $300,000 | $1,200 |
| $500,000 | $2,000 |
| $750,000 | $3,000 |
| $1,000,000 | $4,000 |
| $2,000,000 | $8,000 |
NY Mansion Tax (Buyer Pays — Residential Only)
An additional "mansion tax" is imposed on the buyer for residential sales at or above $1,000,000. The statewide rate is 1%; NYC has a progressive schedule:
| Purchase Price (NYC residential) | Mansion Tax Rate (buyer pays) |
|---|---|
| $1,000,000 – $1,999,999 | 1.00% |
| $2,000,000 – $2,999,999 | 1.25% |
| $3,000,000 – $4,999,999 | 1.50% |
| $5,000,000 – $9,999,999 | 2.25% |
| $10,000,000 – $14,999,999 | 3.25% |
| $15,000,000 – $19,999,999 | 3.50% |
| $20,000,000 – $24,999,999 | 3.75% |
| $25,000,000 and above | 3.90% |
These are "cliff brackets" — the full price is taxed at the bracket rate. Source: NY Tax Law Art. 31 / tax.ny.gov, as of June 2026. Outside NYC, only the 1% statewide rate applies. NYC-specific rates set by 2019 legislation; verify before closing at tax.ny.gov.
NYC Real Property Transfer Tax (RPTT)
New York City adds its own RPTT on top of the state transfer tax. For residential property:
- 1.00% — sales below $500,000
- 1.425% — sales at or above $500,000
Customarily paid by the seller. Source: NYC Department of Finance (nyc.gov/finance), as of June 2026.
Typical New York Closing Cost Summary
| Item | Who Pays | Rate / Range |
|---|---|---|
| NY State Transfer Tax | Seller | 0.40% of price (statutory) |
| NYC RPTT (NYC only) | Seller | 1.00%–1.425% of price (statutory) |
| Mansion Tax (≥$1M residential) | Buyer | 1.0%–3.9% (statutory) |
| Mortgage Recording Tax (NYC) | Buyer | 1.8%–1.925% of loan amount |
| Title Insurance (owner's) | Buyer (NY custom) | 0.3%–0.5% of price (estimate) |
| Title Insurance (lender's) | Buyer | 0.1%–0.3% of loan (estimate) |
| Attorney Fee (buyer) | Buyer | $1,500–$3,500 (estimate) |
| Recording Fees | Buyer | $200–$600 (estimate) |
← Use the Closing Costs Calculator | California closing costs | Transfer tax by state
Frequently Asked Questions
New York State imposes a transfer tax of $2 per $500 of consideration (0.4%) on conveyances exceeding $500. This is paid by the seller (grantor). Source: NY Tax Law Article 31 (tax.ny.gov), as of June 2026.
The NYC mansion tax is an additional buyer-paid tax on residential real estate sales of $1,000,000 or more. The statewide rate is 1% on all sales $1M or above. NYC adds a progressive tier system ranging from 1.25% at $2M to 3.9% at $25M+. These tiered rates are applied to the entire sale price (cliff brackets), creating significant tax cliffs at each threshold. Source: tax.ny.gov / NY Tax Law Art. 31, as of June 2026.
NYC imposes its own Real Property Transfer Tax (RPTT) on top of the state transfer tax. For residential properties: 1.0% on sales below $500,000; 1.425% on sales at or above $500,000. Commercial rates are higher. The RPTT is customarily paid by the seller. Source: nyc.gov/finance, as of June 2026.
New York has one of the most complex buyer/seller cost splits in the country. Sellers pay: state transfer tax (0.4%), NYC RPTT (if NYC), and often the broker commission. Buyers pay: mansion tax (if ≥$1M residential), recording fees, mortgage recording tax (0.8%–1.925% of loan), lender fees, and often attorney fees. Both sides typically hire attorneys, unlike most other states.
New York imposes a mortgage recording tax on new mortgages. The rate varies by county and loan amount, but is typically 0.75%–1.925% of the loan amount (not the purchase price). In NYC, the combined state and local mortgage recording tax can reach 1.8% for loans under $500K and 1.925% for $500K+. This is a significant buyer cost unique to New York.