New York Transfer Taxes: State Tax, Mansion Tax and NYC’s RPTT
Who pays New York State transfer tax, the mansion tax and NYC’s Real Property Transfer Tax, the rate at each price, and a worked $1.5 million example.
By Seayora Editorial Team · Published · Facts checked · 4 min read
Short answer: A New York real estate sale can carry several transfer taxes. The state charges the seller $2 per $500 of price (0.4%), plus 0.25% more in New York City on residential sales of $3 million or more and other sales of $2 million or more. Buyers of homes at $1 million or more pay the 1% mansion tax, and in New York City a supplemental tax that brings the buyer’s total to between 1.25% and 3.9%. The city adds its own Real Property Transfer Tax of 1% to 2.625%, normally paid by the seller.
Key takeaways
- State transfer tax: $2 per $500 of consideration (0.4%), paid by the seller, plus an additional $1.25 per $500 in NYC on residential sales of $3 million+ and other sales of $2 million+.
- Mansion tax: 1% of the price on residential property of $1 million or more, paid by the buyer; in NYC a supplemental tax adds 0.25% to 2.9% from $2 million.
- NYC Real Property Transfer Tax: 1% or 1.425% on residential sales and 1.425% or 2.625% on other property, with the higher rate above $500,000.
- Some places add their own, such as the Community Preservation Fund tax in the Town of Southampton.
What does the state transfer tax cost, and who pays it?
New York State taxes each conveyance of real property where the consideration exceeds $500, at $2 for each $500 or fraction of it, which works out to 0.4%. In New York City, since July 1, 2019, an additional base tax of $1.25 for each $500 (0.25%) applies to residential property of $3 million or more and to other property of $2 million or more. The base tax and the additional base tax are paid by the grantor, the seller (NYS Department of Taxation and Finance).
What is the mansion tax?
An additional tax of 1% of the consideration on a conveyance of residential real property where the consideration for the entire conveyance is $1 million or more. It is paid by the grantee, the buyer; if the buyer does not pay or is exempt, the seller must, and then they are jointly and severally liable (Tax Law § 1402-a). It applies statewide, so a $1.2 million house in Westchester or Nassau carries it as well.
What is the supplemental tax in New York City?
In a city of one million or more people, which in practice means New York City, residential conveyances of $2 million or more also carry a supplemental tax, paid by the buyer (Tax Law § 1402-b):
| Price | Mansion tax | Supplemental tax | Buyer’s total rate |
|---|---|---|---|
| $1 million to under $2 million | 1% | — | 1% |
| $2 million to under $3 million | 1% | 0.25% | 1.25% |
| $3 million to under $5 million | 1% | 0.5% | 1.5% |
| $5 million to under $10 million | 1% | 1.25% | 2.25% |
| $10 million to under $15 million | 1% | 2.25% | 3.25% |
| $15 million to under $20 million | 1% | 2.5% | 3.5% |
| $20 million to under $25 million | 1% | 2.75% | 3.75% |
| $25 million or more | 1% | 2.9% | 3.9% |
What is NYC’s Real Property Transfer Tax?
New York City imposes its own Real Property Transfer Tax (RPTT) on conveyances of property in the city where the consideration exceeds $25,000, and on transfers of a controlling interest of 50% or more in an entity that owns or leases city property (NYC Department of Finance). The seller is normally liable, and the tax is payable within 30 days after the deed is delivered and before it is recorded.
| Property | $500,000 or less | More than $500,000 |
|---|---|---|
| One- to three-family houses, individual condominium units and co-op apartments | 1% | 1.425% |
| All other property, including apartment buildings and commercial property | 1.425% | 2.625% |
For one- to three-family houses and individual co-op or condo units, the consideration does not include a mortgage that existed before the transfer and remains on the property after it. For other property it includes any mortgage, lien or encumbrance, whether or not it is assumed.
What would a $1.5 million NYC condo sale owe?
- State transfer tax, paid by the seller: 0.4% × $1,500,000 = $6,000. The additional base tax does not apply below $3 million for residential property.
- NYC RPTT, paid by the seller: 1.425% × $1,500,000 = $21,375.
- Mansion tax, paid by the buyer: 1% × $1,500,000 = $15,000. There is no supplemental tax below $2 million.
Mortgage recording tax is separate and depends on the loan; see the mortgage recording tax by county.
Are there local transfer taxes outside the city?
Some. On eastern Long Island, the Town of Southampton collects a 2.5% Community Preservation Fund tax, including a 0.5% Peconic Bay Community Housing Fund tax, on real property sales, with the first $400,000 exempt on improved residential parcels selling for $2 million or less and a separate first-time homebuyer exemption (Town of Southampton). Other towns in the Peconic Bay region levy the fund tax with their own exemptions, and some cities and towns elsewhere have their own transfer taxes, so ask the title company for the full list for the address.
Frequently asked questions
Who pays the mansion tax in New York?
The buyer, on residential property bought for $1 million or more. If the buyer does not pay or is exempt, the seller must pay it.
What is the NYC transfer tax on a $2 million house?
The seller owes the state’s 0.4% and the city RPTT of 1.425% on a one- to three-family house over $500,000. The buyer owes the 1% mansion tax plus the 0.25% supplemental tax, 1.25% in total.
Does the NYC RPTT apply to selling an LLC that owns a building?
Yes, a transfer of a controlling interest of 50% or more in an entity that owns or leases real property in New York City is subject to the RPTT.
Sources
- Real estate transfer tax, New York State Department of Taxation and Finance
- N.Y. Tax Law § 1402-a, Additional tax on residential real property (mansion tax), New York State Senate
- N.Y. Tax Law § 1402-b, Supplemental tax in cities of one million or more, New York State Senate
- Statistical Profile of the New York City Real Property Transfer Tax, Calendar Year 2025, NYC Department of Finance
- Community Preservation Fund FAQs, Town of Southampton
How Seayora helps
Property management accounting: Record closing costs and transfer taxes against the right property and basis.
This article is general information, not tax advice. Tax rules change and your situation is your own, so confirm the treatment with a CPA or enrolled agent before you file.
How we write and check these guides: editorial standards.
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