Mount Vernon Transfer Tax: Rates, Filing, and Late Penalties

The Mount Vernon transfer tax is a city real estate transfer tax of 1.5% on the portion of the sale price above $50,000, paid by the seller at closing and filed with the City Comptroller before the deed can be recorded.¹ It stacks on top of the New York State transfer tax, so a $400,000 sale in Mount Vernon carries $5,250 in city tax and another $1,600 in state tax.

How the Rate and Threshold Work

The tax applies whenever the total consideration for the property and any improvements exceeds $50,000. Only the amount above $50,000 is taxed, at 1.5%.¹ On a $400,000 sale, that means 1.5% of $350,000, or $5,250.

The rate was raised from 1% by a local law adopted in December 2023 and approved in late 2024. Some older city handouts and third-party summaries still show the outdated 1% figure; the code controls.

“Consideration” is the full price paid or owed, with no deduction for mortgages, liens, or other encumbrances. It covers cash, property exchanged in lieu of cash, assumed debt, and the discharge of any obligation.¹ If a buyer takes over a $200,000 mortgage and pays $100,000 in cash, the consideration is $300,000, and the tax is calculated on $250,000 of that.

Who Owes the Tax

The seller (grantor) pays. Payment is due within 30 days after the deed is delivered to the buyer, and it must be made before the deed is recorded at the Westchester County Clerk.¹ In practice, that means the tax is handled at the closing table.

Liability shifts to the buyer only when the seller is statutorily exempt, such as a government entity selling to a private party.¹ A seller who simply refuses or fails to pay does not push the bill onto the buyer; the city goes after the seller.

Exempt Parties and Deeds

Chapter 234 exempts two kinds of things: certain parties, and certain deed types.

Exempt parties (they owe no tax and file no return):

New York State, its agencies, public corporations, and political subdivisions
The United States and its agencies and instrumentalities, to the extent immune from taxation

When one of these government entities is the seller, the buyer still owes the tax and still must file the return.¹

Exempt deed types include:

Deeds to or from the United Nations or similar international bodies where the U.S. is a member
Deeds to or from a nonprofit operated exclusively for religious, charitable, or educational purposes (or prevention of cruelty to children or animals), so long as no earnings benefit private individuals and the organization is not primarily carrying on a trade or business for profit
Deeds to the exempt government entities listed above
Deeds from an agent, straw man, or conduit to the actual principal, and the reverse
Deeds delivered under contracts made before the transfer tax ordinance took effect

A nonprofit that primarily runs a for-profit business does not qualify, even if all profits flow to a charitable entity.¹ Anyone claiming an exemption should be ready to document eligibility for the Comptroller.

The State Transfer Tax and Mansion Tax on Top

New York State charges its own transfer tax of $2 per $500 of consideration, roughly 0.4%, on any conveyance where consideration exceeds $500.² On a $400,000 Mount Vernon sale, that is $1,600, paid in addition to the city tax.

Residential purchases of $1 million or more trigger an additional 1% state mansion tax on the full consideration, and this one is paid by the buyer.³ A $1.2 million home would owe $12,000 in mansion tax on top of the state and city transfer taxes. Residential property for this purpose means one-, two-, and three-family homes, individual condos, and co-op units.

Put together, a typical Mount Vernon sale carries a combined transfer-tax burden approaching 2% of the sale price. Above $1 million, with the mansion tax added, the total can exceed 3%.

Filing the Return and Paying

Both the seller and the buyer must file the Mount Vernon Real Property Transfer Tax Return with the City Comptroller, even if no tax is due.⁴ The return asks for:

Full legal names and mailing addresses of seller and buyer
The property’s tax map designation (Section, Block, and Lot)
Total consideration paid, with no deduction for mortgages or liens
The computed tax

Payment is due within 30 days of the deed’s delivery to the buyer and must be made before recording.¹ The city accepts payment by certified check made payable to the City of Mount Vernon. Personal checks are not accepted.⁴

Once the Comptroller processes the return and payment, you get a stamped copy back. Bring that stamped return to the Westchester County Clerk when recording the deed. Without it, the county will not record the transfer.

If You File or Pay Late

A late return or late payment triggers a penalty of 8% of the tax due, plus interest of 1.5% per month (or fraction of a month) for each month of delay after the first.¹ The Comptroller can waive some or all of the penalty when the delay is excusable, but interest is not waivable.

Filing a willfully false return, failing to file at all, or failing to keep required records is a misdemeanor punishable by a fine of up to $1,000, up to one year in jail, or both.¹

If a return isn’t filed or looks clearly wrong, the Comptroller can set the tax based on available information, including the property’s assessed value. That determination becomes final unless you request a hearing within 30 days of notice.¹ If you think tax was collected in error, you have one year from the date of payment to apply to the Comptroller for a refund.

1
City of Mount Vernon, NY. City of Mount Vernon Code Chapter 234 – Article VII Real Estate Transfer Tax
2
New York State Department of Taxation and Finance. Real Estate Transfer Tax: Tax Expenditure Estimates
3
Westchester County Clerk. Land Records Fees and Taxes
4
City of Mount Vernon. Real Property Transfer Tax Return Instructions