Real Estate Transfer Tax in New York: Complete Guide 2026
Data Notice: Figures, rates, and statistics cited in this article are based on the most recent available data at time of writing and may reflect projections or prior-year figures. Always verify current numbers with official sources before making financial, medical, or educational decisions.
Real Estate Transfer Tax in New York: Complete Guide 2026
Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed tax professional for your specific situation.
New York imposes some of the highest real estate transfer taxes in the nation, with state-level taxes, New York City-specific taxes, and the “mansion tax” surcharge combining to create a significant cost at closing. On a ~$2 million residential sale in Manhattan, the total transfer tax burden can exceed approximately ~$60,000 for the seller and approximately ~$22,500 in mansion tax for the buyer. Understanding these overlapping taxes is essential for anyone buying or selling property in New York State, particularly in New York City where additional layers apply.
New York Transfer Tax Rates (2026)
State Real Estate Transfer Tax (RETT)
| Consideration | Tax Rate | Paid By |
|---|---|---|
| Residential, up to ~$499,999 | ~$2 per ~$500 (~0.4%) | Seller |
| Residential, ~$500,000 and above | ~$2 per ~$500 (~0.4%) | Seller |
| Commercial/industrial | ~$2 per ~$500 (~0.4%) | Seller |
| Additional tax on consideration of ~$3 million+ (residential) or ~$2 million+ (commercial) | ~0.25% surcharge | Seller |
New York City Real Property Transfer Tax (RPTT)
| Property Type | Consideration | Tax Rate |
|---|---|---|
| Residential (1-3 family) | Up to ~$499,999 | ~1.0% |
| Residential (1-3 family) | ~$500,000 and above | ~1.425% |
| All other (co-ops, condos, commercial) | Up to ~$499,999 | ~1.425% |
| All other (co-ops, condos, commercial) | ~$500,000 and above | ~2.625% |
New York City Mansion Tax (Buyer’s Tax)
| Consideration | Tax Rate |
|---|---|
| ~$1,000,000 to ~$1,999,999 | ~1.0% |
| ~$2,000,000 to ~$2,999,999 | ~1.25% |
| ~$3,000,000 to ~$4,999,999 | ~1.5% |
| ~$5,000,000 to ~$9,999,999 | ~2.25% |
| ~$10,000,000 to ~$14,999,999 | ~3.25% |
| ~$15,000,000 to ~$19,999,999 | ~3.5% |
| ~$20,000,000 to ~$24,999,999 | ~3.75% |
| ~$25,000,000 and above | ~3.9% |
How New York Transfer Tax Works
State Transfer Tax
New York State imposes a real estate transfer tax on every conveyance of real property where the consideration exceeds approximately ~$500. The base rate is approximately ~$2 per ~$500 of consideration, which equates to approximately ~0.4%. A supplemental tax of approximately ~0.25% applies to residential properties with consideration of ~$3 million or more and commercial properties with consideration of ~$2 million or more. The seller is customarily responsible for paying the state transfer tax, though this is negotiable between the parties.
NYC Real Property Transfer Tax
In addition to the state tax, New York City imposes its own real property transfer tax. The rates are tiered based on property type and sale price. For a residential condo or co-op sale at approximately ~$800,000, the RPTT would be approximately ~$20,900 (at the approximately ~2.625% rate for non-1-3 family properties above ~$500,000). The RPTT is the responsibility of the seller in most transactions, though in new construction the developer often shifts this cost to the buyer.
Mansion Tax
The mansion tax is a buyer-paid transfer tax that applies to residential purchases of approximately ~$1 million or more. Originally a flat ~1% surcharge, it was expanded in 2019 to a graduated scale reaching approximately ~3.9% on purchases of ~$25 million or more. The mansion tax was designed as a progressive measure to increase taxes on luxury real estate transactions. On a ~$5 million apartment purchase, the mansion tax alone is approximately ~$112,500.
Combined Example: ~$2 Million Condo Sale in Manhattan
| Tax | Rate | Amount | Paid By |
|---|---|---|---|
| State RETT | ~0.4% | ~$8,000 | Seller |
| NYC RPTT | ~2.625% | ~$52,500 | Seller |
| Mansion tax | ~1.25% | ~$25,000 | Buyer |
| Total transfer taxes | ~$85,500 |
Comparison to Other States
| State | Transfer Tax Rate | Notes |
|---|---|---|
| New York (NYC) | ~0.4% state + ~1%—~2.625% city + mansion tax | Among highest nationally |
| New York (outside NYC) | ~0.4% state only | Much lower than NYC |
| California | ~$1.10 per ~$1,000 (~0.11%) + local | Relatively low base rate |
| Florida | ~$0.70 per ~$100 (~0.7%) | Documentary stamp tax |
| Texas | None | No state transfer tax |
| New Jersey | High on expensive properties | |
| Connecticut | ~0.75%—~2.25% | Tiered, conveyance tax |
Tips for Buyers and Sellers
- Sellers in NYC should budget approximately ~3% to ~3.1% for combined state and city transfer taxes on sales above ~$500,000. This represents one of the largest closing costs.
- Buyers: calculate the mansion tax carefully for purchases above ~$1 million. The graduated scale means the rate increases at each threshold, so a purchase at approximately ~$1,000,001 triggers the ~1% mansion tax on the full amount.
- Negotiate who pays transfer taxes. While custom dictates that sellers pay the state and city transfer taxes, these costs are negotiable between the parties, particularly in buyer-favorable markets.
- Consider the ~$500,000 RPTT threshold. Sales just above approximately ~$500,000 face significantly higher RPTT rates. In some cases, a price adjustment may be worth negotiating.
- CEMA (Consolidation, Extension, and Modification Agreement) refinances can reduce transfer tax. When refinancing or assuming a mortgage, a CEMA can reduce the mortgage recording tax by applying it only to new money, not the existing balance.
- 1031 exchanges do not eliminate transfer tax. Even in a like-kind exchange that defers capital gains tax, transfer taxes are still due on both the relinquished and replacement properties.
- File Form TP-584 with the county clerk. The Combined Real Estate Transfer Tax Return is required for all conveyances in New York State.
Key Takeaways
- New York State imposes a ~0.4% real estate transfer tax on the seller, with an additional ~0.25% surcharge on high-value properties
- New York City adds its own transfer tax of approximately ~1% to ~2.625%, also paid by the seller
- The mansion tax is a buyer-paid graduated surcharge on residential purchases of ~$1 million or more, reaching approximately ~3.9% on sales above ~$25 million
- Combined transfer taxes on a ~$2 million Manhattan condo sale can exceed approximately ~$85,000
- Outside New York City, transfer taxes are limited to the ~0.4% state rate, dramatically reducing closing costs
- Transfer taxes are not deductible on federal income tax returns for personal residences
Next Steps
- See the full New York tax picture at Taxes in New York: State Tax Guide 2026
- Learn about capital gains on real estate at Capital Gains Tax in New York 2026
- Compare state tax burdens at State Income Tax Rates Comparison 2026
- Calculate your federal bracket with the Tax Bracket Calculator 2026
- Get local help: Find a CPA Near You