Seller Closing Costs in NYC: Transfer Taxes, Commissions, and Flip Taxes

NYC sellers typically pay 8%–10% in closing costs, including commission, NYC/NYS transfer taxes, flip tax, and attorney fees.

Tony InJe Yeo

Oct 02, 2026

Seller Closing Costs in NYC: Transfer Taxes, Commissions, and Flip Taxes

Contents

The big three The rest of the list Worked example: $1,500,000 co-op sale How to reduce them Build a net sheet before you list

Buyers obsess over the mansion tax. Sellers face a bigger number: roughly 8%–10% of the sale price in total closing costs. On a $1.5M sale, that's $120,000–$150,000 off the top before you've paid your mortgage balance. Here's every line.

The big three

1. Broker commission — the largest single cost

Historically ~5%–6% of the sale price, split between listing and buyer-side brokers. Since the 2024 NAR settlement, commission structures are negotiated more explicitly: the seller negotiates their listing broker's fee, and any compensation offered to the buyer's broker is a separate, negotiated term rather than an advertised standard. Rates are and always were negotiable. On $1.5M, 5% is $75,000.

2. NYC Real Property Transfer Tax (RPT)

Residential (1–3 family, co-op, condo):

1.00% on sales up to $500,000
1.425% on sales above $500,000

On $1.5M: $21,375.

3. NYS Real Estate Transfer Tax (RETT)

0.40% on most sales
0.65% on residential sales of $3 million or more
On $1.5M: $6,000.

(These are the seller-side taxes. The mansion tax is the buyer's — see our buyer posts.)

The rest of the list

Flip tax (co-ops, some condos): commonly 1%–3% of price, or a per-share amount, or a share of profit. On $1.5M at 2%: $30,000. Check your building's exact formula.
Attorney fee: typically $2,500–$5,000.
Managing agent / transfer agent fees: several hundred to ~$1,500 (move-out deposit, closing fees, stock transfer).
Mortgage payoff and satisfaction fees: your remaining loan balance plus small processing/recording fees for the satisfaction or, in co-ops, UCC-3 filing.
NYS Equalization and Assessment / filing fees: modest.
NYC/NYS nonresident withholding (if applicable): if you're not a NY State resident, expect estimated income tax on the gain to be collected at closing (Form IT-2663). Foreign sellers face FIRPTA withholding — generally 15% of the gross price. Both are withholding against tax owed, not additional tax; you reconcile on your return.
Miscellaneous: payoff bank attorney (co-op), lien search reimbursements, any negotiated buyer credits or repairs.

Worked example: $1,500,000 co-op sale

Item	Amount
Broker commission (5%)	$75,000
NYC RPT (1.425%)	$21,375
NYS RETT (0.4%)	$6,000
Flip tax (2%)	$30,000
Attorney	$3,500
Managing agent / transfer fees	~$1,500
Payoff/administrative	~$1,000
Total	≈ $138,375 (9.2%)

A condo sale at the same price without a flip tax lands closer to 7%.

How to reduce them

Negotiate commission. It's the biggest number and it's negotiable — on rate, on structure (tiered/flat-fee models exist), and on what compensation you offer the buyer's side. Weigh savings against marketing reach and negotiating skill; a cheaper broker who nets you 3% less on price is not a saving.
Confirm the flip tax formula early with the managing agent — per-share and profit-based formulas surprise people.
Purchase CEMA. If your buyer is financing and you have an existing mortgage, a CEMA assigns your loan to their lender: they save on mortgage recording tax, and your transfer tax base can be reduced by the assigned amount, saving you real money. It requires lender cooperation and adds time; ask your attorney to price it early.
Plan nonresident withholding with your CPA so cash at closing isn't a shock.

Build a net sheet before you list

Ask your agent for a seller net sheet at several price scenarios: gross price minus every cost above minus your mortgage payoff. The number that matters is what lands in your account — and it's usually 8%–10% lower than the number in the listing.

This article is for general informational purposes only and does not constitute legal, tax, or financial advice. Rates reflect New York law as of August 2026; flip taxes and fees vary by building. Sources: NYC Department of Finance RPT schedules; NYS Tax Law Article 31; NYS Form IT-2663; IRC §1445 (FIRPTA). Consult your attorney and CPA.

Want to stay up to date on NYC real estate?
Follow @tonyinjeyeo on Instagram for more market insights, tips, and updates.
Buying, selling, renting, or exploring NYC real estate?
Yeo Real Estate assists with all aspects of NYC real estate, from residential and commercial transactions to market guidance and property searches.
Schedule a consultation:
📧 hello@yeonyc.com
📞 +1 646-940-0166
Yeo Real Estate
135 W 50th St, Suite 200
New York, NY 10020

REBNY Member

Contents

The big three The rest of the list Worked example: $1,500,000 co-op sale How to reduce them Build a net sheet before you list

Market Renter Seller Buyer

Seller Closing Costs in NYC: Transfer Taxes, Commissions, and Flip Taxes

NYC sellers typically pay 8%–10% in closing costs, including commission, NYC/NYS transfer taxes, flip tax, and attorney fees.

Tony InJe Yeo

Oct 02, 2026

Contents

The big three The rest of the list Worked example: $1,500,000 co-op sale How to reduce them Build a net sheet before you list

The big three

1. Broker commission — the largest single cost

2. NYC Real Property Transfer Tax (RPT)

Residential (1–3 family, co-op, condo):

1.00% on sales up to $500,000
1.425% on sales above $500,000

On $1.5M: $21,375.

3. NYS Real Estate Transfer Tax (RETT)

0.40% on most sales
0.65% on residential sales of $3 million or more
On $1.5M: $6,000.

(These are the seller-side taxes. The mansion tax is the buyer's — see our buyer posts.)

The rest of the list

Flip tax (co-ops, some condos): commonly 1%–3% of price, or a per-share amount, or a share of profit. On $1.5M at 2%: $30,000. Check your building's exact formula.
Attorney fee: typically $2,500–$5,000.
Managing agent / transfer agent fees: several hundred to ~$1,500 (move-out deposit, closing fees, stock transfer).
Mortgage payoff and satisfaction fees: your remaining loan balance plus small processing/recording fees for the satisfaction or, in co-ops, UCC-3 filing.
NYS Equalization and Assessment / filing fees: modest.
NYC/NYS nonresident withholding (if applicable): if you're not a NY State resident, expect estimated income tax on the gain to be collected at closing (Form IT-2663). Foreign sellers face FIRPTA withholding — generally 15% of the gross price. Both are withholding against tax owed, not additional tax; you reconcile on your return.
Miscellaneous: payoff bank attorney (co-op), lien search reimbursements, any negotiated buyer credits or repairs.

Worked example: $1,500,000 co-op sale

Item	Amount
Broker commission (5%)	$75,000
NYC RPT (1.425%)	$21,375
NYS RETT (0.4%)	$6,000
Flip tax (2%)	$30,000
Attorney	$3,500
Managing agent / transfer fees	~$1,500
Payoff/administrative	~$1,000
Total	≈ $138,375 (9.2%)

A condo sale at the same price without a flip tax lands closer to 7%.

How to reduce them

Negotiate commission. It's the biggest number and it's negotiable — on rate, on structure (tiered/flat-fee models exist), and on what compensation you offer the buyer's side. Weigh savings against marketing reach and negotiating skill; a cheaper broker who nets you 3% less on price is not a saving.
Confirm the flip tax formula early with the managing agent — per-share and profit-based formulas surprise people.
Purchase CEMA. If your buyer is financing and you have an existing mortgage, a CEMA assigns your loan to their lender: they save on mortgage recording tax, and your transfer tax base can be reduced by the assigned amount, saving you real money. It requires lender cooperation and adds time; ask your attorney to price it early.
Plan nonresident withholding with your CPA so cash at closing isn't a shock.

Build a net sheet before you list

Want to stay up to date on NYC real estate?
Follow @tonyinjeyeo on Instagram for more market insights, tips, and updates.
Buying, selling, renting, or exploring NYC real estate?
Yeo Real Estate assists with all aspects of NYC real estate, from residential and commercial transactions to market guidance and property searches.
Schedule a consultation:
📧 hello@yeonyc.com
📞 +1 646-940-0166
Yeo Real Estate
135 W 50th St, Suite 200
New York, NY 10020

REBNY Member

Contents

The big three The rest of the list Worked example: $1,500,000 co-op sale How to reduce them Build a net sheet before you list