NYC closing costs for buyers, with worked examples
updated 2026-11-10
A buyer in New York City usually pays about 1–2% of the price in closing costs on a co-op and 3–4% on a condo, plus more on a new-development condo. The gap comes from two taxes: the mortgage recording tax, which condo buyers pay and co-op buyers don't, and the mansion tax, which every buyer pays from $1 million up.#
Last updated: 2026-11-10. General information, not legal, tax or financial advice. Tax rates are from the New York State Department of Taxation and Finance; fees are typical ranges, not quotes. Get itemized estimates from your attorney and lender before you bid.#
Worked examples#
All three assume 20% down, an attorney fee of $3,000, lender and appraisal fees of $3,000, condo title insurance at 0.45% of the price, condo recording fees of $1,000, and $2,000 of co-op fees (lien search, application and recognition agreement).#
| Price | Condo closing costs | % of price | Co-op closing costs | % of price |
|---|---|---|---|---|
| $750,000# | $21,925 | 2.9% | $8,000 | 1.1% |
| $1,200,000# | $42,880 | 3.6% | $20,000 | 1.7% |
| $2,500,000# | $88,000 | 3.5% | $39,250 | 1.6% |
What makes up the $1,200,000 condo figure:#
| Item | Amount | How it's calculated |
|---|---|---|
| Mortgage recording tax# | $18,480 | 1.925% of a $960,000 loan |
| Mansion tax# | $12,000 | 1% of $1,200,000 |
| Title insurance# | $5,400 | about 0.45% of the price |
| Attorney# | $3,000 | flat fee |
| Lender and appraisal# | $3,000 | varies by lender |
| Recording and filing# | $1,000 | city fees |
| Total# | $42,880 | 3.6% of the price |
The co-op at the same price pays the same mansion tax ($12,000), attorney and lender fees, and $2,000 in co-op fees. It pays no mortgage recording tax and no title insurance.#
Paying cash removes the mortgage recording tax and the lender fees, which matters most on a condo.#
The taxes#
Mortgage recording tax (condos and houses only)#
New York City charges a tax on the mortgage when it is recorded. The buyer pays 1.8% of the loan amount for loans under $500,000 and 1.925% for loans of $500,000 and above, on condo units and 1–3 family homes. The base is the loan, not the price, so a larger down payment lowers it.#
Co-op loans are exempt, because a co-op loan is secured by shares, not by real property.#
On a resale condo or house you may be able to reduce it with a CEMA (consolidation, extension and modification agreement): your lender takes over the seller's existing mortgage, and you pay recording tax only on the new money. The seller and both lenders have to agree, and there are fees, so it pays off mainly on larger loans.#
Mansion tax (every buyer from $1 million)#
New York State charges the buyer 1% of the full price on any home bought for $1 million or more. In New York City, a supplemental tax adds 0.25% to 2.9% from $2 million up, so the combined rate is:#
| Price | Combined rate |
|---|---|
| $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% |
The rate applies to the whole price, not just the part above the threshold. A $1,000,000 apartment owes $10,000; a $999,000 apartment owes nothing. That cliff is why prices cluster just below $1 million.#
Transfer taxes (seller's, except in new developments)#
The seller normally pays the NYC real property transfer tax (1% up to $500,000, 1.425% above) and the New York State transfer tax (0.4%, or 0.65% on NYC homes of $3 million or more). In new-development condos, the sponsor's contract usually shifts both onto the buyer. On a $1,200,000 new-development condo that adds about $21,900, which pushes closing costs toward 5–6% of the price. Read the offering plan before you bid.#
The fees#
- Attorney: almost always a flat fee, commonly $2,500–$5,000. Both co-op and condo buyers need one.#
- Lender fees and appraisal: origination, underwriting, credit and appraisal, commonly $2,000–$5,000. Points, if you buy down the rate, are extra.#
- Title insurance (condos): protects your ownership of the unit. The owner's policy is set by price, roughly 0.4–0.5% of it; the lender's policy is added if you finance.#
- Lien search (co-ops): replaces title insurance, around $350–$500.#
- Co-op and condo building fees: application, credit check, move-in deposit and the managing agent's fees, from a few hundred dollars to a couple of thousand.#
- Working capital contribution (new developments): often one or two months of common charges, paid into the building's reserve.#
- Prepaid items: your first month of maintenance or common charges, any property tax adjustment, interest from closing to month end, and escrow deposits if your lender requires them.#
Cash you need besides closing costs#
Closing costs come on top of the down payment. Many co-op boards also require post-closing liquidity: cash and investments left over after closing, commonly one to two years of maintenance and loan payments. Plan for all three numbers before you bid: the down payment, closing costs, and the reserves the building asks for.#
The co-op vs condo guide covers the other differences between the two: board approval, monthly costs and renting out.#
Compare the true monthly cost too#
Closing costs are paid once; maintenance, common charges and taxes are paid every month. DwellScore's Financial score compares listings on their true monthly cost. It also scores each listing on things the price doesn't show: tree canopy, traffic noise, park access and daylight. The research behind those scores is in the research hub.#
For the whole process from budget to keys, see buying an apartment in NYC.#