How Much Is Transfer Tax in NY? State, NYC, and Mansion Tax Rates

The real estate transfer tax in New York starts at a state base rate of 0.4% of the sale price, but what you actually pay depends on where the property sits and how much it sold for. A modest upstate sale may carry only that 0.4%. A New York City sale adds a city transfer tax of 1% to 2.625%, a 1% mansion tax kicks in at $1 million, and supplemental state taxes climb to 2.9% on the highest-priced NYC residential deals. Combined transfer taxes on a luxury Manhattan apartment can exceed 6% of the purchase price.

The State Base Rate: 0.4%

Every sale of real property in New York is subject to a state transfer tax of $2 for every $500 of the sale price, which works out to 0.4%.¹ The tax applies whenever the total consideration exceeds $500. A home selling for $600,000 generates a base state transfer tax of $2,400.

The seller pays this tax at closing. A contract can shift the obligation to the buyer, and if the seller fails to pay or is exempt, the buyer becomes legally responsible. Both parties share joint liability until the tax is satisfied, and a buyer who ends up paying can recover the amount from the seller.²

For a one-, two-, or three-family house or an individual residential condominium unit, or any sale under $500,000, remaining mortgages and other liens are subtracted from the taxable amount.¹ A typical homebuyer purchasing a $450,000 house with a $100,000 existing lien would see the base transfer tax calculated on $350,000. That deduction does not apply to the mansion tax or the supplemental taxes below, which are always calculated on the full consideration.

Mansion Tax at $1 Million and Up

When a residential property sells for $1 million or more anywhere in the state, the buyer owes an additional 1% tax on the entire purchase price. This is the mansion tax, established under Tax Law Section 1402-a.³ It applies to one-, two-, and three-family houses, individual residential condos, and cooperative apartments.

Unlike the base transfer tax, the mansion tax is the buyer’s obligation, and it is calculated on the full consideration with no deduction for existing mortgages or liens.⁴ A buyer picking up a $1.2 million co-op with a $300,000 cooperative mortgage still owing would pay 1% on the full $1.2 million, or $12,000.

New York City Transfer Tax

Sales within the five boroughs carry a separate New York City transfer tax on top of the state taxes. The rate depends on whether the property is residential or commercial, and on whether the price crosses $500,000.⁵

Residential, $500,000 or less: 1%
Residential, over $500,000: 1.425%
Commercial or other, $500,000 or less: 1.425%
Commercial or other, over $500,000: 2.625%

The seller pays the city transfer tax, but the city holds both parties jointly responsible for making sure it is paid when the deed is recorded. On a $750,000 Brooklyn condo, the city tax alone is 1.425% of the full price, or $10,687.50.

Supplemental State Taxes on NYC Sales of $2 Million or More

Two extra state-level charges apply to high-value NYC transactions, both effective July 1, 2019, and both limited to conveyances within cities of one million or more people. In practice, that means New York City.

The first is an additional base tax of $1.25 per $500 (0.25%), paid by the seller. It applies to residential sales of $3 million or more and to commercial or other non-residential sales of $2 million or more.¹

The second is a graduated supplemental tax paid by the buyer on NYC residential sales at $2 million and up. It is calculated on the entire purchase price, not just the amount above the threshold.⁶ The rates:

$2 million to under $3 million: 0.25%
$3 million to under $5 million: 0.50%
$5 million to under $10 million: 1.25%
$10 million to under $15 million: 2.25%
$15 million to under $20 million: 2.50%
$20 million to under $25 million: 2.75%
$25 million or more: 2.90%

For mixed-use properties, the supplemental tax applies only to the residential portion of the consideration. If the buyer fails to pay, the seller becomes responsible.

How the Layers Add Up

Take a $2.5 million residential condo in Manhattan. The seller pays 0.4% state base tax ($10,000) and 1.425% city RPTT ($35,625). The buyer pays 1% mansion tax ($25,000) and 0.25% supplemental state tax ($6,250). Total transfer taxes on the sale: $76,875, or about 3.1% of the price. At the high end, a $25 million residential sale can generate combined transfer taxes above 6.5% of the purchase price.

Outside New York City, the arithmetic is much simpler. A $600,000 house in Albany or Buffalo carries only the 0.4% state base tax. A $1.3 million house upstate adds the 1% mansion tax on top, but no city layer and no supplemental tax.

Peconic Bay Region: An Extra Tax on Eastern Long Island

Five towns on eastern Long Island add a community preservation fund (CPF) tax to real estate sales. East Hampton, Shelter Island, Southampton, and Southold each charge 2.5%, which combines a 2% CPF tax with a 0.5% community housing fund tax.⁷ Riverhead charges 2%.

Each town exempts a slice of the price for sales at $2 million or less:

East Hampton, Shelter Island, and Southampton: $400,000 for improved property, $100,000 for vacant land⁷
Southold: $200,000 for improved property, $75,000 for vacant land⁸
Riverhead: $150,000 for improved property, $75,000 for vacant land

No exemption applies when the sale price exceeds $2 million. A first-time homebuyer exemption is also available in these towns for buyers who meet income and price limits tied to state housing program thresholds; the town office has the current numbers.

Transfers That Are Exempt

Not every change of ownership triggers the tax. Tax Law Section 1405 lists the exempt categories.⁹ The ones that matter for most owners:

Genuine gifts of real property, made without consideration and not tied to a sale
Conveyances to the United States, New York State, or their agencies and political subdivisions
Deeds given solely to secure a debt, such as a mortgage deed
Correction or confirmation deeds that add no new consideration
Transfers that change only the legal form of ownership without changing the beneficial owner, such as moving property into your own LLC
Conveyances made under the federal bankruptcy act
Partition deeds dividing co-owned property among existing owners

One trap worth flagging: when the seller is a government body or other exempt entity, the exemption does not carry over to the buyer. The buyer still owes whatever tax would normally apply.⁹

When the Tax Is Due and What Happens If You Miss

Every transfer requires Form TP-584, the Combined Real Estate Transfer Tax Return, which calculates both the base tax and the mansion tax in a single filing.¹⁰ Outside New York City, the form and payment are due within 15 days of the conveyance, and the form must be presented to the county clerk when the deed is recorded.¹¹

NYC transfers also need Form NYC-RPT, prepared electronically through ACRIS, the Automated City Register Information System.⁵ The city deadline is 30 days from the transfer date, with a five-day grace period.¹² Bronx, Brooklyn, Manhattan, and Queens deeds go through the City Register; Staten Island deeds go through the Richmond County Clerk.

Miss the deadline and the state charges an immediate 10% penalty on the unpaid tax, then adds 2% for each month (or partial month) the payment is late after the first month, up to a 25% cap. Interest also runs on the unpaid balance at a variable rate.¹³ Penalties and interest can be waived if you can show the delay was caused by reasonable circumstances and not willful neglect. If no forms are filed at all, the recording office may simply refuse to process the deed, leaving the transfer incomplete.

1
New York State Senate. New York Tax Law TAX 1402 – Imposition of Tax
2
Department of Taxation and Finance. Real Estate Transfer Tax
3
New York State Senate. New York Tax Law 1402-A (2025) – Additional Tax
4
New York Codes, Rules and Regulations. 20 CRR-NY 575.3 – Additional Tax
5
NYC Department of Finance. Real Property Transfer Tax (RPTT)
6
Department of Taxation and Finance. Summary of Amendments to New York’s Real Estate Transfer Taxes
7
Town of Southampton. Frequently Asked Questions – Community Preservation Fund
8
Town of Southold. Frequently Asked Questions – Community Preservation Fund
9
New York State Senate. New York Tax Law TAX 1405 – Exemptions
10
Tax.NY.gov. Instructions for Form TP-584 Combined Real Estate Transfer Tax Return
11
New York State Department of Taxation and Finance. Form TP-584 Combined Real Estate Transfer Tax Return
12
NYC.gov. Real Property Transfer Tax
13
New York State Senate. New York Tax Law 1416 – Interest and Civil Penalties