NYC and NYS Transfer Taxes Explained: Who Pays What at Which Price Point

Three separate transfer-related taxes hit a typical NYC residential sale, and confusing them is the fastest way to blow your budget. Here's the map.

The three taxes

The first two are the "transfer taxes" people mean when they say sellers pay ~1.825% (or ~2.075% at $3M+). The third is technically also a transfer tax in the statute, but everyone calls it the mansion tax and it's the buyer's problem.

NYC RPT details

• Residential (1–3 family homes, individual co-op units, individual condo units): 1% at $500,000 or less; 1.425% above $500,000.

• Commercial and 4+ family properties use a higher schedule (1.425% up to $500,000; 2.625% above).

• The tax applies to transfers of real property and to transfers of economic interests in real property — which is why co-op share transfers are covered even though shares aren't real estate.

• Filed on the NYC-RPT return; the deed or share transfer won't process without it.

NYS RETT details

• 0.40% of consideration on most conveyances statewide.

• 0.65% on residential conveyances of $3,000,000 or more (and on certain commercial conveyances of $2M+).

• Filed on Form TP-584, signed by both parties under penalty of perjury.

• Note: New York requires disclosure of the beneficial owners behind an LLC on residential transfers, so LLC purchases are reported, not anonymous.

When the buyer pays the seller's transfer taxes

Two situations:

1. New development / sponsor sales. Sponsors traditionally shift their transfer taxes to buyers by contract. This is negotiable, particularly on standing inventory.

2. Bulk or sponsor-adjacent structures where the contract allocates costs unusually.

Critical mechanic: when a buyer pays the seller's transfer taxes, that payment is added to the taxable consideration ("gross-up"). It slightly increases the tax itself and — more importantly — can push total consideration over a mansion tax bracket line, raising the buyer's rate on the entire purchase. A $1.97M sponsor deal with ~1.825% in absorbed seller taxes crosses $2,000,000, taking the mansion tax from 1% to 1.25%. Have your attorney compute total consideration before signing.

Exemptions and special cases

Certain transfers are exempt or partially exempt — transfers to governmental bodies, some transfers by will or intestacy, certain corrections and mere changes of identity or form of ownership, and gifts where no consideration passes (though mortgage assumption counts as consideration). Exemptions are technical; have your attorney confirm rather than assuming a family transfer is free.

CEMA: reducing the base legitimately

In a purchase CEMA, the seller's existing mortgage is assigned to the buyer's lender rather than satisfied and newly recorded. The buyer saves mortgage recording tax on the assigned balance, and the seller's transfer tax base can be reduced by the amount of the continuing lien — a genuine saving for both sides. It requires both lenders to cooperate, costs $2,000–$4,000 in fees, and adds roughly a month. Run the math early with your attorney; it's often worth five figures.

Worked totals

$1,500,000 condo sale: seller pays $21,375 (NYC) + $6,000 (NYS) = $27,375; buyer pays $15,000 mansion tax.

$3,500,000 condo sale: seller pays $49,875 (NYC at 1.425%) + $22,750 (NYS at 0.65%) = $72,625; buyer pays $52,500 mansion tax (1.5%).

The takeaway

Sellers: budget ~1.825% (or ~2.075% at $3M+) for transfer taxes on top of commission and any flip tax. Buyers: you're generally clear of these — except in new development, where you should treat them as a negotiable 1.8%+ line item, not a fixed cost.

This article is for general informational purposes only and does not constitute legal or tax advice. Rates reflect New York law as of August 2026. Sources: NYC Administrative Code Title 11, Chapter 21 (RPT); NYS Tax Law Article 31 (§1402); NYS Form TP-584 instructions. Consult your attorney and CPA.

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