A transfer tax is a tax on the transfer of real property, measured by the price. A New York City sale carries two of them: the New York State real estate transfer tax (0.4%, or 0.65% on residential sales of $3 million or more and other sales of $2 million or more) and the NYC Real Property Transfer Tax, or RPTT (1% to 2.625%). The seller pays both by default. The buyer pays two further state taxes on residential purchases: the 1% mansion tax at $1 million and up, and a supplemental tax that starts at $2 million and applies only in New York City.
This guide covers sales in the five boroughs. The state taxes apply statewide, but the 0.65% rate and the supplemental tax apply only in a city of one million or more, which means only NYC. Outside the city, see Westchester closing costs and the separate Yonkers, Mount Vernon and Peekskill transfer taxes.
The taxes at a glance
| Tax | Rate | Applies at | Default payer |
|---|---|---|---|
| NYS transfer tax | 0.4% | Over $500 | Seller |
| NYS additional base tax | +0.25% (0.65% total) | Res. $3M+; other $2M+ | Seller |
| NYS mansion tax | 1% | Residential $1M+ | Buyer |
| NYS supplemental tax | 0.25% to 2.9% | Residential $2M+ | Buyer |
| NYC RPTT | 1% to 2.625% | Over $25,000 | Seller |
“Residential” for the state taxes means a one-, two- or three-family house, an individual condominium unit or a co-op apartment unit, including premises used only partly as a residence (Tax Law § 1402-a).
New York State transfer tax
The base state tax is $2 for each $500 of consideration or fraction of $500, which is 0.4% (Tax Law § 1402(a)). In NYC, an extra $1.25 per $500 is added when the consideration for the entire conveyance is $3 million or more for residential property, or $2 million or more for any other property, for a combined 0.65%. The higher rate applies to conveyances on or after July 1, 2019 (TSB-M-19(1)R).
Both thresholds are cliffs. A $2,999,999 NYC condo pays 0.4% on the full price; a $3,000,000 condo pays 0.65% on the full price.
Who pays, and the 2021 change
The grantor (seller) pays the state transfer tax. If the grantor fails to pay or is exempt, the grantee (buyer) must pay, and the buyer then has a claim against the seller for the tax, interest and penalties (Tax Law § 1404(a)). An exempt seller, such as a government agency, can therefore leave the buyer owing it.
Since July 1, 2021, § 1404(a) also says the tax cannot be charged to the buyer, directly or indirectly, unless the contract provides for it. When a residential buyer pays the state tax under the contract, that payment is no longer added to the taxable price (the “gross-up”) for the state tax (Stewart Bulletin NY000661a).
Mansion tax and the NYC supplemental tax
The mansion tax is 1% of the consideration attributable to residential property when the entire conveyance is $1 million or more (Tax Law § 1402-a). It is a tax on the whole price, not the excess over $1 million: $999,999 owes nothing, $1,000,000 owes $10,000. The buyer pays; if the buyer fails to pay or is exempt, the seller must.
In NYC, residential purchases of $2 million or more also owe the supplemental tax under Tax Law § 1402-b, paid by the buyer. The tier is set by the total price and the rate applies to the full price attributable to residential property:
| Price | Supplemental rate | Mansion + supplemental |
|---|---|---|
| $2M to under $3M | 0.25% | 1.25% |
| $3M to under $5M | 0.50% | 1.50% |
| $5M to under $10M | 1.25% | 2.25% |
| $10M to under $15M | 2.25% | 3.25% |
| $15M to under $20M | 2.50% | 3.50% |
| $20M to under $25M | 2.75% | 3.75% |
| $25M and up | 2.90% | 3.90% |
For mixed-use property, only the residential share of the price is taxed, but the total price picks the tier (TSB-M-19(1)R). Separate condo or co-op units bought by one buyer are tested one at a time unless they are combined or used together (TSB-M-19(1)R).
NYC Real Property Transfer Tax (RPTT)
The RPTT is imposed by NYC Administrative Code § 11-2102 and administered by the NYC Department of Finance (DOF). It does not apply when the consideration is $25,000 or less. The rate depends on property type and whether the price exceeds $500,000 (DOF RPTT page):
| Property | $500,000 or less | Over $500,000 |
|---|---|---|
| 1-3 family house, condo unit, co-op unit | 1% | 1.425% |
| All other (commercial, 4+ family, land) | 1.425% | 2.625% |
The higher rate applies to the entire price, not just the amount above $500,000. A $500,000 condo owes $5,000 of RPTT; a $1,000,000 condo owes $14,250.
The grantor pays the RPTT. The grantee is also liable if the grantor does not pay or is exempt (Admin. Code §§ 11-2104, 11-2105). Both parties must sign the return, and it is due within 30 days after delivery of the deed, even when no tax is due (DOF).
The 2021 state change did not amend the RPTT. Title industry guidance continues to treat seller taxes paid by the buyer as part of the RPTT consideration, including any state transfer tax the buyer pays (Stewart Bulletin NY000661a; Nixon Peabody).
Existing mortgages and co-op share transfers
On a one- to three-family house or a residential condo unit, both the state tax and the RPTT exclude any mortgage or lien that stays on the property after the sale (Tax Law § 1402(a); Admin. Code § 11-2102(f)). On commercial and other property, a mortgage the buyer takes subject to is part of the taxable price for the RPTT, and for the state tax when the price is $500,000 or more.
A co-op sale transfers shares and a proprietary lease, not a deed, but both the state tax and the RPTT apply. The RPTT covers “transfers of cooperative housing stock shares” (DOF), and a co-op unit is residential property for the state taxes. On the resale of an individual residential co-op unit, the price excludes the unit’s share of the building’s underlying mortgage (Admin. Code § 11-2102(b)(2); Tax Law § 1401(d)). A $1.2 million co-op therefore owes the same transfer and mansion taxes as a $1.2 million condo. What it does not owe is mortgage recording tax on the buyer’s loan, because no mortgage is recorded. For the title side of a co-op purchase, see Buying a co-op: lien searches in NYC.
Transfer tax calculator: two NYC condo examples
These are hypothetical resales of residential condo units with no mortgage assumed, each party paying its statutory share.
$800,000 condo
| Tax | Calculation | Amount | Payer |
|---|---|---|---|
| NYS transfer tax | $800,000 × 0.4% | $3,200 | Seller |
| NYC RPTT | $800,000 × 1.425% | $11,400 | Seller |
| Mansion tax | Under $1M | $0 | Buyer |
| Supplemental tax | Under $2M | $0 | Buyer |
| Seller total | $14,600 | ||
| Buyer total | $0 |
$3,500,000 condo
| Tax | Calculation | Amount | Payer |
|---|---|---|---|
| NYS transfer tax | $3,500,000 × 0.65% | $22,750 | Seller |
| NYC RPTT | $3,500,000 × 1.425% | $49,875 | Seller |
| Mansion tax | $3,500,000 × 1% | $35,000 | Buyer |
| Supplemental tax | $3,500,000 × 0.5% | $17,500 | Buyer |
| Seller total | $72,625 | ||
| Buyer total | $52,500 |
The state figures match the Tax Department’s own $3.5 million example (TSB-M-19(1)R, Example 7). To run your own numbers: round the price up to the next $500 for the state tax, pick the RPTT rate by property type and the $500,000 line, then add the buyer’s taxes if the price reaches $1 million or $2 million. The buyer’s mortgage recording tax is a separate charge, covered in Mortgage recording tax in NYC and Westchester.
Sponsor sales: the buyer usually pays
On a new development condo bought from the sponsor, the purchase agreement customarily makes the buyer pay the seller’s transfer taxes. That is a contract term, not the statute: § 1404(a) now requires the shift to appear in the contract between grantor and grantee (Nixon Peabody). The cost is larger than it looks. The seller taxes the buyer pays are added to the price for RPTT purposes (the gross-up described above), while the state tax on a residential unit is no longer grossed up. Read the offering plan and the purchase agreement before signing, and ask the title closer for a calculation on the actual contract price.
Exemptions
Both taxes exempt transfers to government bodies and conveyances that only secure a debt; a government seller is exempt itself, which shifts the tax to the buyer (Tax Law § 1405; DOF). The exemption owners use most is the mere change of identity or form of ownership, such as deeding a property into an LLC with the same owners in the same shares. It applies only to the extent beneficial ownership stays the same (Tax Law § 1405(b)(6); Admin. Code § 11-2106(b)(8)). How it works, and how a later investor can undo it, is covered in Deeding a NYC rental into an LLC. Exempt transfers still require full returns.
Both the RPTT and the state tax also reach the transfer of a controlling interest (50% or more) in an entity that owns the property, even though no deed is recorded (DOF; Tax Law § 1401(b), (e)).
Forms, filing and deadlines
For deeds in Manhattan, Brooklyn, Queens and the Bronx, the returns are prepared online in ACRIS and filed with the City Register when the deed is recorded:
| Form | Covers | Deadline |
|---|---|---|
| TP-584-NYC | All NYS transfer taxes | 15 days after delivery |
| NYC-RPT | NYC RPTT | 30 days after delivery |
| RP-5217NYC | Sale data for assessors | With the deed |
The state deadline comes from Tax Law § 1410; TP-584-NYC is the state form for all NYC conveyances (NYS Tax Department). The RP-5217NYC fee is $125 for one- to three-family homes and residential condos and $250 for other property (DOF instructions). On Staten Island, deeds are recorded with the Richmond County Clerk, and the RPTT return is filed both through ACRIS and on paper with that office (DOF).
In practice the title closer collects the taxes at closing by check and submits them with the recording package, which keeps both deadlines. Late RPTT returns carry 5% per month up to 25%, and late payment 0.5% per month up to 25%, plus interest (DOF). The taxes appear on the title bill; see The title bill explained.
Official sources
- New York Tax Law § 1402, § 1402-a, § 1402-b, § 1404, § 1405 and § 1410
- NYS Department of Taxation and Finance, TSB-M-19(1)R, real estate transfer tax overview, TP-584-NYC instructions and TP-584 instructions
- NYC Administrative Code, Title 11, Chapter 21 (RPTT), §§ 11-2101 to 11-2106
- NYC Department of Finance, Real Property Transfer Tax (RPTT) and RP-5217NYC instructions
- Stewart Title, Bulletin NY000661a (2021 amendment and RPTT gross-up)