NYC Mortgage Recording Tax Calculator

What Is the Mortgage Recording Tax?

The mortgage recording tax is paid when a mortgage is recorded with the NYC City Register. It applies to all new mortgages on real property (condos, houses, commercial buildings) but not co-ops (which use stock pledges instead of mortgages).

NYC Mortgage Recording Tax Rates

Combined NYC + NYS rates for 1-3 family residential property:

• Mortgages under $500,000: 2.05% total (borrower pays 1.80%, lender pays 0.25%)
• Mortgages of $500,000 or more: 2.175% total (borrower pays 1.925%, lender pays 0.25%)
• Commercial mortgages of $500,000 or more: 2.80% total

The lender's share is the 0.25% "special additional tax," which the lender pays by statute on residential mortgages.

Example Calculations

Mortgage of $400,000:

• MRT: $400,000 x 2.05% = $8,200 (borrower: $7,200, lender: $1,000)

Mortgage of $1,200,000:

• MRT: $1,200,000 x 2.175% = $26,100 (borrower: $23,100, lender: $3,000)

CEMA (Consolidation, Extension, and Modification Agreement)

A CEMA allows a buyer to "assume" the seller existing mortgage for the purpose of reducing the mortgage recording tax. The tax is only paid on the difference between the new mortgage amount and the old mortgage being assigned. For example:

• New mortgage: $800,000
• Seller existing mortgage (assigned via CEMA): $500,000
• Taxable amount: $800,000 - $500,000 = $300,000
• MRT savings: $500,000 x 2.175% = $10,875 saved

Co-op Exemption

Co-op purchases are exempt from mortgage recording tax because co-op financing involves a pledge of shares and proprietary lease, not a mortgage on real property. This is a significant cost advantage for co-op buyers, avoiding the 1.80-1.925% borrower share of the tax entirely.

Refinancing

The mortgage recording tax also applies to refinancing. If you refinance with the same lender, a CEMA can minimize the tax. If you switch lenders, a CEMA may still be possible but requires more coordination between the old and new lenders.