New York City imposes three separate transfer taxes on residential real estate, making it one of the most complex — and expensive — closing cost environments in the US. Understanding which taxes apply, and who pays them, is essential for anyone buying or selling in Manhattan, Brooklyn, Queens, the Bronx, or Staten Island.
The NYC mansion tax is a CLIFF tax — if the price is $999,999 you pay 0%, at $1,000,000 you pay 1.0% on the ENTIRE amount ($10,000). Sellers and buyers sometimes negotiate to price just below a threshold.
The NYS mansion tax ($1M+, 1.0%) stacks on top of the NYC mansion tax — buyers pay both.
Co-op transfers are taxed differently (no deed — shares transfer). The RPTT still applies but recording fees differ.
New development (sponsor sales) often requires the buyer to pay the seller's RPTT as a condition of the offering plan.
The $2.625% RPTT at $3M+ applies to the entire amount — not just the portion above $3M.
The NYC RPTT is paid by the seller. The NYC and NYS mansion taxes (on sales $1M+) are paid by the buyer. New construction sometimes requires buyers to pay the seller's RPTT per the offering plan.
The full purchase price. NYC mansion tax is a cliff structure — once the sale price crosses a threshold, the applicable rate applies to the entire sale price, not just the excess. This creates negotiating pressure just below each threshold.
Yes. Co-op sales are subject to the NYC RPTT and mansion tax just like condos and townhouses. However, because no deed is recorded (you're buying shares in a corporation), recording fees are minimal.
Enter any address — we apply all applicable tax layers automatically.
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