New York Closing Costs: Transfer Tax, Mansion Tax, and Mortgage Recording Tax Explained

Each New York closing tax has its own threshold, rate, and payer. This article covers the main state and New York City taxes, with figures attributed to the New York State Department of Taxation and Finance (tax.ny.gov) and the NYC Department of Finance (nyc.gov) as of October 2026. Rates and rules change; confirm current figures with the Tax Department or the NYC Department of Finance before you rely on them. This is general information, not tax advice.

The State Transfer Tax

Tax Law § 1402(a)(1) imposes the real estate transfer tax “at the rate of two dollars for each five hundred dollars or fractional part thereof” of consideration, which works out to 0.4%. In New York City (a city of one million or more), § 1402(a)(2) adds “an additional one dollar and twenty-five cents for each five hundred dollars or fractional part thereof” (0.25%) when the consideration for a residential conveyance is three million dollars or more, or two million dollars or more for any other property. The Tax Department states: “The base tax and additional base tax are paid by the grantor (seller).” The buyer may pay it if the contract so provides, and the buyer pays if the seller does not or is exempt.

The “Mansion Tax”: 1% at $1 Million and Up

Under Tax Law § 1402-a, “The rate of such tax shall be one percent of the consideration or part thereof” attributable to residential real property, applying “when the consideration for the entire conveyance is one million dollars or more.” It applies statewide, and residential real property includes “a cooperative apartment unit” and “an individual condominium unit” as well as one- to three-family houses. The tax “shall be paid by the grantee” (the buyer); if the grantee fails to pay or is exempt, “the grantor shall have the duty to pay the tax,” and liability is joint and several.

New York City’s Supplemental Tax

In New York City, Tax Law § 1402-b adds a supplemental tax on residential conveyances (including co-op and condo units) of two million dollars or more, paid by the grantee (the buyer), with the grantor (the seller) responsible if the buyer fails to pay or is exempt. The “combined” column is our arithmetic, adding the 1% mansion tax to the supplemental rate; it is not statutory text.

The NYC Real Property Transfer Tax

New York City also imposes its own Real Property Transfer Tax (RPTT). Rates per the Department of Finance:

The Department states: “You must pay the RPTT tax and file the return within thirty days after the transfer of the property.” Both grantor and grantee sign the return. Under NYC Administrative Code § 11-2104, the tax is paid by the grantor (the seller), and the grantee (the buyer) is also liable if the seller does not pay or is exempt. A contract may shift the cost between the parties, so ask your attorney how your contract addresses it.

Mortgage Recording Tax

Mortgage recording tax is charged on the loan amount, not the price. Tax Law § 253(1) sets a basic tax of fifty cents per $100 of principal debt. A special additional tax of twenty-five cents per $100 also applies; on property with not more than six residential units, it is to “be paid by the mortgagee” (the lender), unless the lender is a natural person or a credit union. The Tax Department describes an additional tax of 25¢ per $100 (30¢ in Metropolitan Commuter Transportation District counties) and, for a one- or two-family residence, says “the first $10,000 of principal debt or obligation secured by the mortgage is deducted in computing the additional tax.”

Combined rates from Form MT-15 (rev. 1/25), per $100 of mortgage debt:

County rates change; elsewhere in the state, check the current MT-15 and tax.ny.gov rate notices.

Title Insurance Is Regulated, Too

Title insurance is not a tax, but in New York its “rates and rules are subject to approval by the Department” of Financial Services, and “TIRSA is a rate service organization licensed by the Department.” An owner’s policy “Protects the property owner up to the full original sales price of the property,” while a lender’s policy “Protects the lender’s interest in the property.” When both are issued together, “a reduced rate known as the Simultaneous Mortgage Rate applies.” DFS’s Insurance Regulation 208 prohibits title insurers and title agents from offering inducements for future title insurance business; in 2019 a New York appellate court upheld that prohibition, and DFS Circular Letter No. 2a (2019) explains how the regulation applies.

After Closing: The STAR Credit

The Tax Department says the STAR exemption “is no longer available to new homeowners”; owners who have received it since 2015 may keep it for the same primary residence. New owners may instead qualify for the STAR credit, paid by check or direct deposit. The home must be the primary residence of an eligible owner. The Basic STAR income limit is “$500,000 or less for the STAR credit” (combined income of resident owners and spouses). Enhanced STAR requires at least one resident owner “at least 65 as of December 31 of the benefit year,” with income limits of “$110,750 or less” for 2026 benefits and “$113,550 or less” for 2027 benefits. Limits change annually; if you may be eligible, register with the Tax Department.

What This Article Does Not Cover

This page does not cover every local tax or fee, and it is not tax advice. Confirm your figures with the Tax Department or the NYC Department of Finance. Our guides to buying a home and selling a home in New York put these costs in context, and the Real Estate & Closings page describes the firm’s transaction work. When you are ready, request a flat-fee quote; taxes, title insurance, and recording charges are separate from any attorney fee.

Related Reading

• Do I Need a Lawyer to Buy a House?
• Seller Property Condition Disclosure
• Buying a Co-op in New York