What this calculator does
Two separate transfer taxes apply to most New York City sales: the city's Real Property Transfer Tax (RPTT) and New York State's real estate transfer tax. By custom the seller pays both, which makes them the largest seller cost after broker commissions. This calculator applies the correct rates for the price and property type and shows the buyer's mansion tax alongside for context.
How to use it
- Enter the sale price.
- Choose residential or commercial.
- Read each tax and the combined total.
The formula
NYC RPTT = price × 1% for residential sales of $500,000 or less, or 1.425% above $500,000 (2.625% for most commercial sales above $500,000). NYS transfer tax = price × 0.4%, rising to 0.65% for NYC residential sales of $3 million or more (and other NYC property at $2 million or more).
Worked example
Using the default inputs shown in the calculator above:
| Tax | Amount |
|---|---|
| NYC RPTT at 1.425% | $17,100 |
| NYS transfer tax at 0.40% | $4,800 |
| Total transfer taxes | $21,900 |
| Mansion tax (buyer, residential $1M+) | $12,000 |
NYC + NYS transfer taxes: $21,900. 1.825% of the price, customarily paid by the seller.
Because the price is over $500,000, the NYC rate is 1.425% instead of 1%. The state rate is 0.4% until the price reaches $3,000,000.
What affects transfer taxes in NYC
New York City has some of the highest closing taxes in the country. Buyers of homes at $1 million or more pay the mansion tax (1% rising to 3.9%), and borrowers pay mortgage recording tax of 1.8% or 1.925% on condo and house loans (co-op loans are exempt). Sellers usually pay the NYC Real Property Transfer Tax (1% or 1.425%) and New York State transfer tax (0.4%, or 0.65% on residential sales of $3 million or more).
In new-development sales, sponsors commonly require the buyer to pay the seller's transfer taxes. Because the tax is then paid on the buyer's behalf, it is 'grossed up' — itself treated as part of the price — which increases the total.
Common mistakes and tips
- Using 1.425% on a $500,000 sale — the higher rate starts above $500,000.
- Forgetting that sponsor sales often shift these taxes to the buyer.
- Missing the extra 0.25% state rate at $3 million.
- Confusing transfer taxes with the mansion tax, which is a separate buyer tax.
Frequently asked questions
Who pays transfer tax in NYC?
Usually the seller pays both the NYC RPTT and NYS transfer tax. In sponsor sales of new developments, the contract often makes the buyer pay.
What is the NYC transfer tax on a $1 million sale?
NYC RPTT at 1.425% is $14,250 and NYS tax at 0.4% is $4,000, for $18,250 in total.
When does the 0.65% state rate apply?
For residential property in New York City when the price is $3 million or more.
Do co-op sales pay transfer tax?
Yes. Transfers of co-op shares are subject to both the NYC RPTT and NYS transfer tax.
Sources
Disclaimer
This calculator provides estimates for educational purposes only and is not financial, tax, legal, real estate, or insurance advice. Consult a licensed professional before making decisions.