In NYC closing costs, the seller usually pays the two transfer taxes: the New York State transfer tax (0.4%, rising to 0.65% on large sales) and the NYC Real Property Transfer Tax (1% to 2.625%). The buyer pays the mansion tax when a residential price reaches $1 million (1%, rising in tiers to 3.9% at $25 million), the mortgage recording tax on a condo or house loan, the title insurance premiums, and the City Register recording fees. Co-op buyers skip the mortgage recording tax and usually title insurance, but face building fees instead. In new development sponsor sales, the contract usually moves the seller’s transfer taxes to the buyer.
This guide covers the five boroughs. It sets out the government and title charges for each side and works through a $1,200,000 condo example. Attorney fees, broker commissions, lender fees and tax or common charge adjustments are not covered. For Westchester County, see Westchester closing costs.
Seller closing costs: the transfer taxes
New York State transfer tax
The state tax is $2 for each $500 of consideration or fraction of $500, which is 0.4% (Tax Law § 1402(a)(1)). In a city of one million or more people, which in New York means NYC, an additional $1.25 per $500 applies when the consideration for the entire conveyance is $3 million or more for residential property, or $2 million or more for other property (§ 1402(a)(2)). That brings the rate to 0.65%. Residential property here means a one-, two- or three-family house, a condo unit or a co-op unit. The additional rate sits in § 1402(a)(2); § 1402(b) is the separate reduced rate for REIT transfers.
NYC Real Property Transfer Tax (RPTT)
The NYC Department of Finance (DOF) applies the RPTT to sales over $25,000, including transfers of co-op shares:
| Property | $500,000 or less | Over $500,000 |
|---|---|---|
| Residential (1-3 family, condo, co-op) | 1% | 1.425% |
| All other property | 1.425% | 2.625% |
The higher rate applies to the whole price, not just the amount above $500,000. Under NYC Administrative Code § 11-2104, the grantor (seller) pays, and the grantee (buyer) becomes liable if the seller does not pay or is exempt, as the NYC Tax Appeals Tribunal has applied it. The return (Form NYC-RPT) is due within 30 days of the transfer.
Combined, a seller of a residential property over $500,000 pays 1.825% (0.4% plus 1.425%), and 2.075% at $3 million and up. Exemptions, filing and the tax on entity transfers are covered in NYC and NYS transfer tax.
Default payer versus the contract
Both statutes name the seller, but Tax Law § 1404(a) lets a contract between the parties shift the state tax to the buyer. Resale contracts usually leave transfer taxes with the seller. New development is the main exception: sponsor contracts for condo units typically make the buyer pay the sponsor’s state and city transfer taxes (Nixon Peabody, NYLJ, Sept. 2021). That is contract practice, not law, so read the purchase agreement.
When a buyer pays the state transfer tax under the contract on a residential sale, the tax is no longer added to the taxable price (the “gross-up”), a rule in effect since July 1, 2021. The change does not reach the city tax: buyer-paid state tax is still counted as consideration when the RPTT is computed (Stewart bulletin NY000661a).
Buyer closing costs: mansion tax and mortgage tax
Mansion tax NYC: two layers
The flat mansion tax is 1% when the consideration for a residential conveyance is $1 million or more (Tax Law § 1402-a). In NYC only, a supplemental tax is added from $2 million (§ 1402-b). The buyer pays both; if the buyer does not pay or is exempt, the seller must.
| Total price | Combined rate |
|---|---|
| $1M to under $2M | 1.00% |
| $2M to under $3M | 1.25% |
| $3M to under $5M | 1.50% |
| $5M to under $10M | 2.25% |
| $10M to under $15M | 3.25% |
| $15M to under $20M | 3.50% |
| $20M to under $25M | 3.75% |
| $25M or more | 3.90% |
The rate is set by the total price and applied to the full residential consideration, not the amount over a threshold. A $999,999 condo owes no mansion tax; a $1,000,000 condo owes $10,000. Both layers are reported on Form TP-584-NYC and due within 15 days of delivery of the deed.
Mortgage recording tax
A buyer financing a condo or house pays mortgage recording tax on the loan. In NYC the gross rate is 2.05% for loans under $500,000 and 2.175% for one- to three-family homes and condo units at $500,000 or more. On most residential loans the lender pays 0.25%, leaving the borrower at 1.80% or 1.925%. Rates, the $30 deduction and the other property types are in Mortgage recording tax in NYC and Westchester. On a refinance or a purchase where the seller’s lender cooperates, a CEMA can reduce it.
Title insurance and recording fees
Title premiums in all five boroughs follow the TIRSA Zone 2 rate manual. By custom the buyer pays for the owner’s policy and the lender’s policy, with the lender’s policy at 30% of the loan rate when the two are issued together. See What title insurance costs in NYC and Westchester. Endorsements, municipal searches and recording service charges appear as separate lines on the title bill.
Deeds and mortgages in Manhattan, Brooklyn, Queens and the Bronx are recorded with the City Register through ACRIS. Staten Island records with the Richmond County Clerk. The DOF recording fee schedule for the four ACRIS boroughs:
| Item | Fee |
|---|---|
| Deed or mortgage, base | $32 |
| Each page | $5 |
| Cover page | $5 |
| Each additional lot | $3 |
| Mortgage tax affidavit | $8 |
| UCC financing statement (e-filed) | $20 |
Every deed also carries the RP-5217NYC real property transfer report, with a $125 filing fee for one- to three-family homes and residential condos and $250 for other property (DOF RP-5217NYC instructions). By custom the buyer pays deed and mortgage recording and the RP-5217 fee; the seller pays to record the satisfaction of its own mortgage.
Co-op vs condo closing costs
A co-op buyer purchases shares and a proprietary lease, not real property, which changes several lines:
- No mortgage recording tax. A co-op share loan is not a recorded mortgage, so the tax does not apply. The lender files a UCC financing statement instead.
- Lien search, not title insurance. Co-op buyers usually order a lien search on the seller and the unit rather than an owner’s title policy. See Buying a co-op: lien search.
- No deed to record. There is no deed, so there are no deed recording fees, though the state transfer tax, RPTT and mansion tax still apply to co-op units.
- Building fees. Co-ops may charge a flip tax on transfer, which Business Corporation Law § 501(c) permits when it is provided for in the proprietary lease or offering plan. Whether the buyer or seller pays depends on those documents. Managing agent, transfer agent, application and move-in or move-out fees are set by the building and its agent.
Condo buyers pay the full set: mansion tax, mortgage recording tax, title insurance and recording. New development condo contracts often add the sponsor’s transfer taxes, the sponsor’s attorney fees and a working capital contribution, so check the offering plan’s closing cost schedule.
Closing costs for buyer: summary
| Charge | Amount | Default payer |
|---|---|---|
| Mansion tax | 1% to 3.9% at $1M+ | Buyer (statute) |
| Mortgage recording tax | 1.80% / 1.925% net | Borrower, less lender 0.25% |
| Owner’s title policy | TIRSA rate | Buyer (custom) |
| Loan title policy | 30% of loan rate | Buyer (custom) |
| Deed and mortgage recording | $32 + $5/page + $5 | Buyer (custom) |
| Mortgage tax affidavit | $8 | Buyer (custom) |
| RP-5217NYC fee | $125 / $250 | Buyer (custom) |
| Transfer taxes, sponsor sale | Per contract | Buyer (contract) |
| Co-op lien search, UCC | Per title bill | Buyer (custom) |
Seller closing costs: summary
| Charge | Amount | Default payer |
|---|---|---|
| NYS transfer tax | 0.4% / 0.65% | Seller (statute) |
| NYC RPTT, residential | 1% / 1.425% | Seller (City law) |
| NYC RPTT, other | 1.425% / 2.625% | Seller (City law) |
| Satisfaction recording | ACRIS fee schedule | Seller (custom) |
| Payoff handling fee | Per title bill | Seller (custom) |
| Co-op flip tax | Per building | Per lease or plan |
“Statute” or “City law” means the law names the payer; the contract can still reallocate the cost, and the other party becomes liable if the named party does not pay or is exempt. “Custom” means no law assigns it.
Worked example: $1,200,000 condo, $960,000 loan
This is a hypothetical resale of a residential condo unit in Manhattan with a bank loan. It excludes attorney fees, broker commissions, lender fees, endorsements, searches, adjustments and the page-based recording fees.
Buyer
| Item | Amount |
|---|---|
| Mansion tax: 1% × $1,200,000 | $12,000 |
| Mortgage recording tax, borrower share | $18,480 |
| Owner’s policy (TIRSA rate) | $4,977 |
| Loan policy (simultaneous) | $1,035 |
| RP-5217NYC fee | $125 |
| Buyer total | $36,617 |
The mortgage tax is $960,000 × 2.175% = $20,880 gross, of which the lender pays $2,400 (0.25%) and the borrower $18,480 (1.925%). No $30 deduction is taken because its treatment for condo units is not settled; see the mortgage tax guide. With an owner’s policy at $1 million or more, no underwriter deviation applies, so the premium follows the TIRSA rate. If the unit were a co-op, the mortgage tax, title premiums and RP-5217 fee would drop out and building fees and a lien search would take their place.
Seller
| Item | Amount |
|---|---|
| NYS transfer tax: $2 per $500 | $4,800 |
| NYC RPTT: 1.425% × $1,200,000 | $17,100 |
| Seller total | $21,900 |
The seller also pays to record the satisfaction of any existing mortgage. If this were a sponsor sale and the contract put transfer taxes on the buyer, the buyer would pay the state tax on $1,200,000 and the RPTT on a price grossed up by the seller taxes the buyer pays, including that state tax.
Getting an accurate number for your closing
- Identify the property type: co-op, condo, or one- to three-family house. It changes the mortgage tax, title and recording lines.
- Read the contract’s closing cost clause, especially in a sponsor sale, and the offering plan or proprietary lease for flip tax and building fees.
- Ask the title company for a pro forma title bill with taxes, premiums, endorsements, searches and recording fees. In the four ACRIS boroughs, the transfer tax returns are prepared in ACRIS, which computes the taxes due.
- Compare those lines with the Loan Estimate and Closing Disclosure. The taxes and filed premiums should match the formulas above.
For who prepares and collects each item at closing, see Who does what at a New York closing.
Official sources
- New York Tax Law § 1402 (state transfer tax), § 1402-a (mansion tax), § 1402-b (NYC supplemental tax) and § 1404 (who pays)
- NYS Department of Taxation and Finance, Form TP-584-NYC instructions
- NYC Department of Finance, Real Property Transfer Tax, ACRIS recording fees and RP-5217NYC instructions
- NYC Tax Appeals Tribunal, determination applying Admin. Code § 11-2104
- New York Business Corporation Law § 501 (co-op transfer fees)
- Stewart Title, bulletin NY000661a (2021 transfer tax amendment)