NYC transfer tax: rates, and when the buyer pays it

updated 2026-11-11

NYC and New York State transfer taxes total 1.4% to 2.075% of the price. The seller normally pays them; in a new-development sale the buyer usually does.#

Last updated: 2026-11-11. General information, not legal, tax or financial advice. Rates and rules change, so confirm the numbers for your deal with your real estate attorney and lender.#

The short answer#

Two transfer taxes apply when a New York City home changes hands: the city's real property transfer tax and the state's real estate transfer tax. By law the seller pays both. A buyer pays them only when the contract shifts them, which is standard in sponsor sales of new-development condos, or when the seller fails to pay or is exempt.#

PriceNYC taxNYS taxCombined
$500,000 or less#1.0%0.4%1.4%
$500,001 – $2,999,999#1.425%0.4%1.825%
$3,000,000 and above#1.425%0.65%2.075%

The rates apply to the whole price, not just the part above each threshold. They cover one- to three-family houses, individual condo units and co-op apartments alike.#

NYC real property transfer tax#

The NYC real property transfer tax (RPTT) is set by the city's Administrative Code and collected by the NYC Department of Finance. For residential sales it is 1% of the price at $500,000 or less and 1.425% above $500,000. It applies to a co-op share sale at the same rates as a condo sale. The return is due within 30 days of the transfer, and both buyer and seller sign it.#

NYS transfer tax#

The NYS transfer tax is $2 for every $500 of price, or part of $500, which works out to 0.4%. For residential property in New York City at $3 million or more, an additional base tax of $1.25 per $500 applies, raising the state rate to 0.65% of the whole price. That higher rate has applied since July 1, 2019. It is reported on Form TP-584-NYC, filed at closing.#

Don't confuse the transfer tax with the mansion tax. The mansion tax is also a state tax on the sale, but the buyer pays it, starting at $1 million.#

Who pays transfer tax in NYC?#

On a resale, the seller. Both the city code and the state law put the tax on the grantor, meaning the seller, and the state law says the buyer cannot be made to pay it except by contract. If the seller doesn't pay, or is exempt (a government agency, for example), the buyer becomes liable for it.#

On a sponsor sale (the first sale of a unit by the developer of a new condo), the purchase agreement in the offering plan usually makes the buyer pay both transfer taxes. It is a contract term, so it can be negotiated. Read the offering plan's closing cost section before you bid, because on a $1.2 million unit the transfer taxes add over $22,000 to your cash at closing.#

How the tax is figured when the buyer pays#

When you pay the seller's transfer taxes, the two governments treat that money differently:#

  • New York State excludes it. On a residential sale, transfer tax a buyer pays under the contract is left out of the amount subject to state tax. That rule also means it doesn't raise your mansion tax.#
  • New York City treats it as part of the price. The transfer taxes you pay on the sponsor's behalf are added to the price, and the city tax is figured on that larger amount. Attorneys call this the gross-up.#

A common way to compute it, and the one shown in a published NYC tax appeals determination:#

  1. NYS tax = 0.4% (or 0.65% at $3 million and up) of the price.#
  2. NYC tax before gross-up = 1.425% of the price.#
  3. Grossed-up price = price + step 1 + step 2.#
  4. NYC tax = 1.425% of the grossed-up price.#
  5. Total you pay = step 1 + step 4.#

Your attorney may use a slightly different method, so treat the result as an estimate within a few hundred dollars.#

Worked examples#

$750,000 resale co-op. The seller pays $10,687.50 to the city (1.425%) and $3,000 to the state (0.4%), $13,687.50 in all. The buyer pays no transfer tax.#

$1,200,000 new-development condo, buyer pays.#

StepAmount
NYS tax: 0.4% × $1,200,000#$4,800.00
NYC tax before gross-up: 1.425% × $1,200,000#$17,100.00
Grossed-up price: $1,200,000 + $4,800 + $17,100#$1,221,900.00
NYC tax: 1.425% × $1,221,900#$17,412.08
Transfer taxes you pay#$22,212.08

On top of that you pay the mansion tax, 1% of $1,200,000 = $12,000, figured on the price before any gross-up.#

$2,500,000 new-development condo, buyer pays. NYS tax is $10,000. NYC tax before gross-up is $35,625, so the grossed-up price is $2,545,625 and the NYC tax is $36,275.16. Total: $46,275.16.#

$3,100,000 new-development condo, buyer pays. At $3 million the state rate rises to 0.65%, so NYS tax is $20,150. NYC tax before gross-up is $44,175, the grossed-up price is $3,164,325, and the NYC tax is $45,091.63. Total: $65,241.63. At $2,995,000 the state tax would be $11,980 instead of $19,500 at $3,000,000.#

How to calculate it yourself: an NYC and NYS transfer tax calculator#

For an ordinary resale, where the seller pays:#

  1. Take the full price.#
  2. NYC tax: multiply by 1% if the price is $500,000 or less, otherwise by 1.425%.#
  3. NYS tax: multiply by 0.4% if the price is under $3,000,000, otherwise by 0.65%. (Strictly, it is $2 per $500 or part of $500, so round the price up to the next $500 first.)#
  4. Add the two.#

Pre-computed amounts (seller pays, no gross-up):#

PriceNYC taxNYS taxTotal
$400,000#$4,000$1,600$5,600
$500,000#$5,000$2,000$7,000
$750,000#$10,687.50$3,000$13,687.50
$1,000,000#$14,250$4,000$18,250
$1,200,000#$17,100$4,800$21,900
$1,500,000#$21,375$6,000$27,375
$2,000,000#$28,500$8,000$36,500
$2,500,000#$35,625$10,000$45,625
$3,000,000#$42,750$19,500$62,250
$3,100,000#$44,175$20,150$64,325

If you are buying from a sponsor and paying the taxes, use the five-step gross-up above instead. It raises the NYC figure by about 2%: $17,412.08 instead of $17,100 at $1,200,000.#

What this means for a buyer#

On a resale, transfer tax is the seller's cost, but it shapes negotiation: the seller nets the price minus about 1.8% in transfer taxes (2.075% from $3 million) and the broker's commission. Some co-ops also charge a flip tax on sale, usually paid by the seller.#

On new construction, transfer taxes can push total closing costs to 5–6% of the price. The NYC closing costs guide puts them beside the mortgage recording tax, title insurance and fees. For the whole process, see buying an apartment in NYC.#

Sources#