NYC transfer tax and mansion tax: rates, who pays and examples

The taxes at a glance

Four taxes come up in a New York City home sale. Which ones matter depends on whether you are the seller or the buyer.

Each rate below is explained with its source. Seller-side costs sit in our net proceeds guide, and the net proceeds calculator uses the same seller rates.

The NYS transfer tax

The NYS transfer tax is $2 for each $500 of the price, or fractional part of $500, which equals 0.4 percent. The price is rounded up to the next $500 before the rate is applied, according to Tax Law section 1402 and the state's TP-584 instructions (August 2025 revision).

On New York City residential sales where the price of the entire conveyance is $3,000,000 or more, the state adds $1.25 per $500. That makes the state rate 0.65 percent on the entire price, not only the amount over $3,000,000. The TP-584-NYC instructions show the same method with a $4,000,000 two-family sale taxed at $10,000 on the added portion.

The state form treats a residential cooperative apartment as residential real property, so the NYS transfer tax applies to a co-op sale. That answers the common question about a transfer tax on a co-op: the state's tax applies, and so does the city's.

The NYC transfer tax rate

Inside the five boroughs, the city's Department of Finance charges the real property transfer tax, or RPTT. For residential property, meaning a one to three family home, an individual condo unit or a co-op apartment, the rates on the city's RPTT page and NYC 311 are:

The rate applies to the whole price. The city lists transfers of co-op stock among the taxed transfers. It applies when the transfer is at least 50 percent of a controlling interest and the value exceeds $25,000. The return and payment are due within 30 days of the transfer. Property that is not residential, such as many commercial buildings, uses a different rate schedule on the same page.

Rates can change, so confirm them with your attorney before you rely on a number in a contract.

Who pays the transfer tax in NYC?

For the state tax, the seller, called the grantor on the deed. The buyer is liable only when the seller fails to pay or is exempt, in which case the two are jointly responsible. A contract may shift the cost, and when a buyer pays under the contract for a residential property, the tax amount is excluded from the taxable price, per Tax Law section 1404 and the TP-584 instructions.

For the city tax, the seller is customary. That is how net sheets treat it. The city's pages say both parties are responsible for filing and can be held liable, so ask your attorney to confirm that the closing statement shows it on the seller's side. When people ask who pays transfer tax in NYC, the practical answer is the seller, unless the contract says otherwise.

One deduction is worth knowing. For one to three family houses, individual condo units and any conveyance under $500,000, the state's taxable consideration excludes liens or mortgages that remain on the property at conveyance, such as an assumed mortgage. For co-op resales, liens on the shares are excluded under section 1405-b. Ask your attorney whether any of it applies to your sale.

The mansion tax in NYC

The mansion tax is the state's additional tax under Tax Law section 1402-a. It is 1 percent of the consideration attributable to residential property when the entire conveyance is $1,000,000 or more, for a one to three family house, an individual condo unit or a co-op apartment. The buyer pays it. If the buyer fails to pay or is exempt, the seller must pay. It applies to the whole price once the threshold is met.

New York City residential purchases add a supplemental tax on the entire amount, also paid by the buyer, with the seller secondarily liable. Under section 1402-b and the TP-584-NYC instructions:

Sources: Tax Law 1402-a; Tax Law 1402-b; TP-584-NYC-I.

For a downsizer, the mansion tax is a buyer cost to fold into the next purchase. If you plan to keep a second home in the city, ask your CPA about any other taxes that apply to it.

Worked examples with the verified rates

The prices are hypothetical. The math uses only the rates above and ignores any deductions, exemptions, commissions and other costs.

A seller at $900,000 (co-op)

The $500,000 line

At a $500,000 price, the state tax is 1,000 × $2, or $2,000, and the city tax is 1 percent, or $5,000. Move the price to $500,001 and the city rate becomes 1.425 percent of the whole price, which is about $7,125. The state tax rises by only a few dollars. That jump at the $500,000 line is why a price near it deserves a careful look with your attorney.

The $3,000,000 line

A $3,000,000 residential sale in New York City carries a state tax of 6,000 × $3.25, or $19,500, and a city tax of 1.425 percent, or $42,750. That is $62,250 for the seller. The state portion on a $2,999,999 sale is $12,000, because the added tax starts at $3,000,000.

A buyer at $1,000,000 and $2,000,000

At $1,000,000, the mansion tax is 1 percent, or $10,000, and no city supplemental tax applies. At $999,999, the mansion tax does not apply. At $2,000,000, the mansion tax is $20,000 and the city supplemental tax at 0.25 percent is $5,000, for $25,000 in total. At $3,000,000, it is $30,000 plus 0.5 percent, or $15,000, for $45,000.

Run your own numbers in the net proceeds calculator, which uses the seller-side rates. It cannot include your commission, attorney, payoff or any flip tax.

How the taxes are filed and paid

You usually do not write these checks yourself. The state's TP-584 is the form that reports the transfer and computes the state tax, and the city's real property transfer tax return goes to the Department of Finance. The city says its return and payment are due within 30 days of the transfer. In a typical closing, the attorney or title company prepares the returns and the taxes are paid from the funds at the table.

Your job is to check the numbers on the closing statement before closing day. Compare the state and city lines against the rates in this guide and ask your attorney to explain any difference. Differences can come from a lien deduction, a contract allocation, an exemption or a keying error, and you want to know which.

Keep a copy of the closing statement. Your CPA will want it when you file your income tax return, and it records what you paid.

Co-ops, condos and houses

The same transfer taxes apply across the three property types a downsizer is likely to consider: a co-op apartment, a condo unit and a one to three family house. What differs is what else comes with the sale. A co-op seller may also owe a flip tax, a fee the cooperative corporation sets, so read our flip tax guide. A condo seller should ask the board about unpaid common charges, since state law lets buyer and seller obtain a statement of them.

Outside New York City, other taxes can apply. Yonkers and Peekskill have their own, and other localities may too, so ask the attorney or title company about your address. The co-op, condo, townhouse or house guide compares the property types.

What this guide does not cover

Three things sit outside the rates above, and each calls for a professional. Income tax on any gain is a separate calculation, with a federal exclusion of up to $250,000, or $500,000 on a joint return, for qualifying main homes under IRC section 121. State and city income tax follow your own return, and a nonresident seller has extra steps. A CPA can model it.

Exemptions and special treatment for transfers between family members, estates and similar situations exist in the rules. Your attorney knows whether one applies. And rates can change, so confirm current figures before you sign.

Next steps

For a seller, request a closing cost estimate from your attorney that shows the state and city lines separately. For a buyer, add the mansion tax to your cash-to-close if the price reaches $1,000,000. If you are buying and selling, buy first or sell first covers the timing. For the broader picture, see Costs and Money, where to downsize and the resources page. When you are ready to talk with an agent, get matched. Introductions go to agents on the operating team at eXp Realty, so this is not a search of the whole market.