In short
New York State taxes every deed at $2 per $500 of price, or 0.4% (Tax Law § 1402), and the seller pays. In New York City, a separate city tax adds 1% up to $500,000 and 1.425% above it on homes, condos and co-ops (NYC Department of Finance). The buyer pays a 1% “mansion tax” on residential sales of $1 million or more (Tax Law § 1402-a).
What the state charges everywhere in New York
The basic state tax is $2 for each $500 of consideration, or fraction of $500, when the consideration is more than $500 (Tax Law § 1402). Consideration means the price paid for the property. The tax applies to deeds statewide. You file Form TP-584 with the county clerk where the property is, or Form TP-584-NYC in New York City, and the tax is due no later than the 15th day after the deed is delivered (NYS Department of Taxation and Finance).
What changes in New York City
Four things stack on top of the base tax inside the five boroughs.
1. NYC Real Property Transfer Tax (RPTT). The city tax applies to sales above $25,000. For a one- to three-family house, a condominium unit or a co-op apartment, the rate is 1% if the price is $500,000 or less and 1.425% if it is above $500,000. Other property, such as commercial buildings, is taxed at 1.425% up to $500,000 and 2.625% above (NYC Department of Finance, as of October 2026).
2. Additional base tax. Since July 1, 2019, NYC conveyances pay another $1.25 per $500 when the entire residential conveyance is $3 million or more (non-residential: $2 million or more). That is 0.25% of price (Tax Law § 1402; Form TP-584-NYC-I).
3. Mansion tax. Anywhere in the state, a residential conveyance of $1 million or more carries an extra tax of 1% of the consideration (Tax Law § 1402-a). This is a cliff: a $999,999 sale pays none, a $1,000,000 sale pays $10,000.
4. Supplemental tax in NYC. For residential sales of $2 million or more, the buyer also pays a rate that rises with the total price (Tax Law § 1402-b):
| Entire conveyance | Supplemental rate |
|---|---|
| $2M to under $3M | 0.25% |
| $3M to under $5M | 0.5% |
| $5M to under $10M | 1.25% |
| $10M to under $15M | 2.25% |
| $15M to under $20M | 2.5% |
| $20M to under $25M | 2.75% |
| $25M or more | 2.9% |
The supplemental rate applies to the whole residential price, not just the part above each threshold (Form TP-584-NYC-I).
Who pays by law
| Tax | Who pays under the statute |
|---|---|
| State base tax (0.4%) and additional base tax | Seller (grantor). The buyer becomes liable if the seller fails to pay or is exempt (Tax Law § 1404) |
| Mansion tax and supplemental tax | Buyer (grantee). The seller must pay if the buyer fails to pay or is exempt (Tax Law §§ 1402-a, 1402-b) |
| NYC RPTT | The city says you “must pay” it and that both seller and buyer sign the return. Its page does not assign the tax to one side; check the contract (NYC Department of Finance) |
The state form adds that the seller’s state tax cannot be passed to the buyer “except as provided in a contract.” When a buyer agrees by contract to pay it on a residential sale, that amount is left out of the price on which the tax is calculated (Form TP-584-NYC-I). Your purchase contract and your attorney settle who pays the RPTT; see New York real estate attorneys.
Exemptions
Tax Law § 1405 exempts, among others: conveyances to the United States, New York State or their agencies; deeds that only secure a debt (mortgages); gifts and other transfers without consideration that are not part of a sale; changes of form with no change in beneficial ownership; deeds of partition; and certain contracts or options under $200,000 when the grantor used the property as a personal residence. The city lists its own exemptions, including government bodies, qualifying nonprofits, transfers by an executor under a will and some HDFC transfers; a sale by an executor is taxable. Exempt NYC transfers must still be reported on a return.
Worked example in New York City
This is an example, not a quote. Assume a $800,000 condominium in Manhattan and a $1,200,000 apartment, both with no other taxable components.
| Tax | $800,000 sale | $1,200,000 sale | Paid by |
|---|---|---|---|
| State base tax: price ÷ 500 × $2 | $3,200 | $4,800 | Seller by statute |
| NYC RPTT at 1.425% | $11,400 | $17,100 | Per contract (see above) |
| Mansion tax at 1% | $0 | $12,000 | Buyer |
| Additional base and supplemental | $0 | $0 | Not triggered (below $2M and $3M) |
| Total transfer taxes | $14,600 | $33,900 |
Above $3 million the layers grow: a $4,000,000 house adds $10,000 of additional base tax (seller), $40,000 of mansion tax and $20,000 of supplemental tax at 0.5% (buyer). The $10,000 figure matches the state’s own instruction example.
Transfer taxes are only part of the bill. For the rest, see closing costs in New York and New York City. For the federal tax on your gain, see capital gains on a home sale.
Frequently asked questions
Does New York have a transfer tax?
Yes. The state charges $2 for every $500 of price (0.4%) under Tax Law § 1402, and the seller pays it. New York City adds its own tax, and a 1% mansion tax applies to residential sales of $1 million or more.
What is the mansion tax in New York?
It is an extra 1% of the price on residential sales of $1 million or more (Tax Law § 1402-a). The buyer pays it. It applies to the whole price, so a $1,000,000 purchase owes $10,000.
Who pays the NYC transfer tax?
The state’s base tax is the seller’s by statute, and the mansion and supplemental taxes are the buyer’s. The NYC Department of Finance says the RPTT must be paid and that both parties sign the return, without naming a payer, so the contract controls.
What is the NYC transfer tax rate on a $800,000 apartment?
The city RPTT is 1.425% on residential sales above $500,000, which is $11,400 on $800,000 (NYC Department of Finance). The state adds 0.4%, or $3,200.
Are there extra taxes on a mortgage?
Yes. New York taxes the recording of a mortgage separately, and that tax is not a transfer tax. It is covered in closing costs in New York.
Compare with the other states: Real estate transfer tax by state.
More New York guides
- Closing costs in New York: what buyers and sellers pay
- Property tax in New York: rates, STAR and how to contest
- New York seller disclosure: the property condition statement
- Do you need a real estate attorney in New York?
- How foreclosure works in New York: a court process
- Home prices in New York and NYC: median value and trend
- New York first-time buyer programs: SONYMA and HomeFirst
- How to verify a real estate license in New York
- Tenant rights in New York: deposits, rent limits, good cause
Sources
- Tax Law § 1402, Imposition of real estate transfer tax (New York State Senate) (consulted October 13, 2026)
- Tax Law § 1402-a, Additional tax on conveyances of residential real property (New York State Senate) (consulted October 13, 2026)
- Tax Law § 1402-b, Supplemental tax on residential property in cities of one million or more (New York State Senate) (consulted October 13, 2026)
- Tax Law § 1404, Liability for the tax (New York State Senate) (consulted October 13, 2026)
- Tax Law § 1405, Exemptions (New York State Senate) (consulted October 13, 2026)
- Real estate transfer tax (New York State Department of Taxation and Finance) (consulted October 13, 2026)
- Form TP-584-NYC-I, Instructions for Form TP-584-NYC, 8/25 (New York State Department of Taxation and Finance) (consulted October 13, 2026)
- Real Property Transfer Tax (RPTT) (NYC Department of Finance) (consulted October 13, 2026)