NYC and NYS Transfer Tax Guide

NYC Real Property Transfer Tax (RPTT)

NYC imposes a transfer tax on all sales or transfers of real property:

• Residential (1-3 family, condo units): 1.0% on sales of $500,000 or less; 1.425% on sales above $500,000
• All other property: 1.425% on sales of $500,000 or less; 2.625% on sales above $500,000

NYS Real Estate Transfer Tax

New York State also imposes a transfer tax:

• Standard rate: 0.4% ($2 per $500 of consideration)
• Additional tax: 0.25% on residential properties sold for $3 million or more (the "Mansion Tax supplemental" for the state portion)

Example Calculation: Condo Sale at $1,500,000

• NYC RPTT: $1,500,000 x 1.425% = $21,375
• NYS Transfer Tax: $1,500,000 x 0.4% = $6,000
• Total Transfer Tax: $27,375
• (Mansion Tax would apply separately to the buyer)

Example Calculation: Commercial Sale at $5,000,000

• NYC RPTT: $5,000,000 x 2.625% = $131,250
• NYS Transfer Tax: $5,000,000 x 0.4% = $20,000
• Total Transfer Tax: $151,250

Who Pays the Transfer Tax?

By NYC custom, the seller typically pays the NYC RPTT and NYS transfer tax. However, for new development sales, the buyer often pays both as the sponsor passes through these costs. Co-op sales have different rules: NYC RPTT applies but at different thresholds.

Exemptions

Certain transfers are exempt or partially exempt: transfers to government entities, transfers to or from certain nonprofits, transfers pursuant to court order, and transfers between related entities (with limitations). Consult a real estate attorney for specific exemption applicability.