Who Pays Transfer Tax in NY?

In New York, both the seller and the buyer may owe transfer taxes, depending on the type of tax:

1. New York State Transfer Tax

• Paid by: Seller
• Rate:
  • 0.4% of the sale price (i.e., $4 per $1,000)
  • Plus an additional “mansion tax” paid by the buyer on residential deals over $1 million (1%–3.9%, depending on price)

2. New York City Transfer Tax (if the property is in NYC)

• Paid by: Seller
• Rate:
  • Residential:
    • 1% for sales up to $500,000
    • 1.425% above $500,000
  • Commercial:
    • 1.425% up to $500,000
    • 2.625% above $500,000

3. Mansion Tax (NY State)

• Paid by: Buyer
• Applies to residential properties of $1M+
• Starts at 1% and scales up to 3.9% for $25M+ properties

Summary

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