At a glance
Selling a property in New York City means paying several overlapping taxes at once. There is the NYC Real Property Transfer Tax (RPTT)— a local tax of 1% to 2.625% depending on property type and price. On top of that, New York State collects a Real Estate Transfer Tax (RETT)at 0.4% on every sale statewide, plus a 1% Mansion Tax on residential sales at or above $1 million (paid by the buyer). For NYC properties priced at $2 million or more, two additional state-level charges apply: a flat 0.25% NYC surcharge and a progressive supplemental tax that rises from 0.25% all the way to 2.90% on the highest-priced sales. This guide explains every layer — step by step — so you know exactly what to expect before closing.
All figures in this guide reflect current law as of 2026. NYC’s RPTT has been governed by NYC Administrative Code Title 11, Chapter 21 (§11-2101 et seq.) since 1989, with no rate changes enacted between 2024 and 2026.[1] The state-level components — including the mansion tax, surcharge, and progressive supplemental tax — were added by New York State effective July 1, 2019, and are codified in New York Tax Law Article 31 (§§1402, 1402-a, 1402-b).[2][3]
1 Establish Location and Property Type
Before any numbers are calculated, two questions must be answered: Is the property inside New York City? And what type of property is it? Both answers determine which taxes apply and at what rate.
The NYC RPTT applies only within the five boroughs — Manhattan, Brooklyn, Queens, the Bronx, and Staten Island. Properties elsewhere in New York State are subject only to the state RETT base and, where applicable, the mansion tax. There is no NYC surcharge or supplemental tax outside the city.[2]
For NYC RPTT purposes, properties are classified as either “Type 1/2 Residential” (one- to three-family homes, individual condo units, and co-op shares) or “All Other” (commercial buildings, mixed-use properties, offices, warehouses, hotels, and any property that does not meet the residential definition).[1][4] This classification controls which rate column applies in the next step.
Example A — Single-Family Home in Brooklyn
A buyer and seller agree on a sale of a three-bedroom home in Park Slope, Brooklyn for $900,000. Location: inside NYC. Property type: 1–3 family residential (Type 1/2).
Result: NYC RPTT applies at the residential rate. All state taxes also apply.
Example B — Commercial Office Building in Manhattan
An LLC purchases a six-story office building in Midtown Manhattan for $4,000,000. Location: inside NYC. Property type: commercial/other (not Type 1/2).
Result: NYC RPTT applies at the higher commercial rate. State RETT and surcharge apply. No mansion tax (commercial is not eligible). No progressive supplemental (commercial not eligible).
2 Calculate the NYC RPTT
The NYC Real Property Transfer Tax is a percentage of the full sale price (the total consideration, including any assumed mortgage or liens).[1] The rate depends on the property classification from Step 1 and whether the price is above or below $500,000.
| Property Classification | Sale Price ≤ $500,000 | Sale Price > $500,000 |
|---|---|---|
| Residential Type 1/2 (1–3 family, condo, co-op) | 1.00% | 1.425% |
| All Other (commercial, mixed-use, etc.) | 1.425% | 2.625% |
The rate applies to the entire sale price — it does not phase in. A $500,001 residential sale pays 1.425% on the full $500,001, not just on the $1 above the threshold.[1][4]
NYC RPTT = Sale Price × Applicable Rate
Example A — Residential Condo at $450,000
A studio condo in the East Village sells for $450,000. Residential Type 1/2, price below $500k → rate = 1.00%.
$450,000 × 1.00% = $4,500 NYC RPTT
Example B — Residential Condo at $750,000
A one-bedroom condo in Williamsburg sells for $750,000. Residential Type 1/2, price above $500k → rate = 1.425%.
$750,000 × 1.425% = $10,688 NYC RPTT (rounded to the nearest dollar)
The seller is primarily liable for the NYC RPTT, though contracts may shift the obligation to the buyer. Either way, the return must be filed jointly by both parties.[1]
3 Calculate the NYS RETT Base Tax
Regardless of whether the property is in NYC or elsewhere in New York, the State imposes a base Real Estate Transfer Tax of $2 for every $500 of consideration — or any fraction thereof.[2] This works out to 0.4% of the sale price. The key mechanical rule is the rounding: you must round the sale price up to the next complete $500 before calculating the tax. A sale of $450,100 is treated as $450,500 for this purpose.
Tax Units = ceiling(Sale Price ÷ 500) NYS RETT Base = Tax Units × $2
Note that the NYS RETT base tax has a special rule for qualifying residential sales under $500,000: if the buyer is assuming an existing mortgage, the state tax is calculated only on the buyer’s equity portion (the cash paid), not the full sale price. The assumed mortgage is excluded from the state tax base under NY Tax Law §1402(b).[2] NYC RPTT, by contrast, applies to the full consideration including any assumed debt.
Example A — $450,000 Condo (Continuing from Step 2)
Sale price: $450,000. No assumed mortgage.
Tax units: ceiling($450,000 ÷ $500) = ceiling(900.0) = 900 units
NYS RETT Base: 900 × $2 = $1,800
Example B — $750,000 Condo (Continuing from Step 2)
Sale price: $750,000. No assumed mortgage.
Tax units: ceiling($750,000 ÷ $500) = ceiling(1,500.0) = 1,500 units
NYS RETT Base: 1,500 × $2 = $3,000
4 Apply the Mansion Tax — Residential Sales ≥ $1 Million BUYER PAYS
New York State imposes a flat 1% Mansion Tax on any transfer of residential real property — including houses, condos, co-ops, and mixed-use properties that include a residential component — where the sale price is at or above $1,000,000.[3] Unlike the NYC RPTT, which the seller pays, the Mansion Tax is the buyer’s obligation. It is codified in NY Tax Law §1402-a.
The tax applies to the full sale price — not just the amount above $1 million. A $1,000,001 sale triggers a Mansion Tax on the entire $1,000,001. Commercial property (with no residential use at all) does not trigger the Mansion Tax.[3]
Mansion Tax = Sale Price × 1.00% (if residential ≥ $1,000,000)
Example A — $900,000 Home in Brooklyn (Step 1’s Example A)
Sale price $900,000 — below the $1M threshold. No mansion tax applies.
Mansion Tax = $0
Example B — $1,500,000 House in Staten Island
A two-family home sells for $1,500,000. Residential, price ≥ $1M → Mansion Tax applies.
$1,500,000 × 1.00% = $15,000 Mansion Tax (paid by buyer)
NYS RETT Base: ceiling(1,500,000 ÷ 500) × $2 = 3,000 × $2 = $6,000 (paid by seller)
5 Apply the NYC Surcharge and Progressive Supplemental Tax — Sales ≥ $2 Million
For NYC properties priced at $2 million or above, New York State imposes two additional taxes that were introduced together on July 1, 2019.[2][5]
The NYC Surcharge (0.25%) applies to all property types — residential, commercial, and mixed-use — when the sale price is $2,000,000 or more. It is a flat 0.25% of the full sale price, codified in NY Tax Law §1402.[2]
The NYC Progressive Supplemental Tax applies only to residential and mixed-use properties priced at $2 million or more. The rate increases as the price rises, following a bracket schedule set out in NY Tax Law §1402-b.[5] Unlike income tax brackets, which apply rates only to the amount within each bracket, this tax applies the single bracket rate to the entire sale price.
| Sale Price Bracket | NYC Surcharge (all types) | Supplemental Rate (residential/mixed-use only) |
|---|---|---|
| $2,000,000 – $2,999,999 | 0.25% | 0.25% |
| $3,000,000 – $4,999,999 | 0.25% | 0.50% |
| $5,000,000 – $9,999,999 | 0.25% | 1.25% |
| $10,000,000 – $14,999,999 | 0.25% | 2.25% |
| $15,000,000 – $19,999,999 | 0.25% | 2.50% |
| $20,000,000 – $24,999,999 | 0.25% | 2.75% |
| $25,000,000 and above | 0.25% | 2.90% |
Example A — $2,000,000 Residential Home in Queens
A home sells for exactly $2,000,000. Residential, NYC, price ≥ $2M.
NYC Surcharge: $2,000,000 × 0.25% = $5,000
Supplemental (bracket: $2M–$3M, rate 0.25%): $2,000,000 × 0.25% = $5,000
Example B — $4,000,000 Commercial Office Building in Manhattan (Step 1’s Example B)
Sale price $4,000,000. Commercial, NYC, price ≥ $2M.
NYC Surcharge: $4,000,000 × 0.25% = $10,000
Supplemental: $0 (commercial properties are not eligible for the supplemental tax)
6 Add Everything Up — Total Transfer Taxes
With all components calculated, the total transfer tax is the sum of every applicable layer. The breakdown also tells you who pays what — an important detail for structuring the purchase contract.
Total NYS RETT = Base Tax + Mansion Tax + NYC Surcharge + Supplemental Total Transfer Taxes = NYC RPTT + Total NYS RETT
Example A — $750,000 Residential Condo in Brooklyn (Full Calculation)
Sale price: $750,000 | Type: Residential condo | Location: NYC
NYC RPTT (1.425%): $750,000 × 1.425% = $10,688 (seller)
NYS RETT Base: 1,500 units × $2 = $3,000 (seller)
Mansion Tax: $0 (below $1M threshold)
NYC Surcharge: $0 (below $2M threshold)
Supplemental: $0 (below $2M threshold)
Total Transfer Taxes = $13,688 — all paid by seller. Effective rate: 1.825%
Example B — $2,000,000 Residential Home in Queens (Full Calculation)
Sale price: $2,000,000 | Type: 1–3 family residential | Location: NYC
NYC RPTT (1.425%): $2,000,000 × 1.425% = $28,500 (seller)
NYS RETT Base: 4,000 units × $2 = $8,000 (seller)
Mansion Tax (1.00%): $2,000,000 × 1.00% = $20,000 (buyer pays)
NYC Surcharge (0.25%): $2,000,000 × 0.25% = $5,000 (seller)
Supplemental (0.25% bracket): $2,000,000 × 0.25% = $5,000 (seller)
Total Transfer Taxes = $66,500 — seller pays $46,500, buyer pays $20,000. Effective rate: 3.325%
Transfers That Are Exempt
Not all property conveyances trigger these taxes. NYC Administrative Code §11-2106 and NY Tax Law §1405 each list specific exempt transactions.[1][6] The most commonly encountered exemptions include:
- Government and nonprofit transfers — conveyances to or from the U.S. government, the State of New York, or qualifying nonprofits and international organizations.
- Bona fide gifts — transfers made with no monetary consideration at all. NYS RETT does not apply (§1405); NYC RPTT does not apply, but a return must still be filed.
- Transfers securing a debt — a deed used as collateral for a mortgage or pledge is not a taxable conveyance.
- Mere change of form or identity — transferring title between entities with no change in beneficial ownership (such as a name correction or internal corporate reorganization) is not taxable under either NYC or NYS law.
- Partition deeds — where co-owners divide jointly held property equally with no additional cash consideration.
Important: Even if a transfer is fully exempt from both the NYC RPTT and NYS RETT, it must still be reported. NYC requires a zero-dollar NYC-RPT return filed via the ACRIS system for all NYC conveyances, including exempt ones. New York State requires a TP-584 or TP-584-NYC filed with the appropriate county clerk.[4][7]
Filing Deadlines and Who Pays What
Getting the taxes right is only half the task — they must also be filed on time with the correct agency.
| Tax | Form | Where Filed | Deadline | Who Pays |
|---|---|---|---|---|
| NYC RPTT | NYC-RPT | Online via ACRIS (NYC DOF) | 30 days after transfer | Seller (primarily) |
| NYS RETT (NYC properties) | TP-584-NYC | Manhattan (NY County) Clerk | 15 days after deed date | Seller (primarily) |
| NYS RETT (outside NYC) | TP-584 | County clerk of property location | 15 days after deed date | Seller (primarily) |
| Mansion Tax | TP-584-NYC (Schedule B) | Manhattan County Clerk | 15 days after deed date | Buyer |
Late filing penalties are steep. NYC charges 5% of unpaid tax per month, up to a maximum of 25%, plus interest.[1] New York State charges a 10% late penalty plus an additional 2% per month on amounts above $2,500 or overdue by more than 60 days.[7]
Frequently Asked Questions
Does the Mortgage Recording Tax (MRT) replace or include the transfer tax?
No — these are completely separate obligations. The MRT applies when a new mortgage is recorded, and it is paid by the borrower (buyer), not the seller. For NYC properties, the combined city and state MRT on a residential mortgage can run from roughly 2.85% to 3.225% of the loan amount depending on size. The transfer tax and MRT are paid at different times, to different agencies, by different parties.[8]
If the buyer assumes my mortgage, is it included in the sale price for RPTT purposes?
Generally yes. NYC RPTT applies to the total consideration paid by the buyer, which includes any mortgage balance assumed. For NYS RETT, there is a carve-out under Tax Law §1402(b): if the property is a 1–3 family home or individual condo selling for under $500,000, the assumed mortgage balance is excluded from the state tax base — only the buyer’s equity payment is taxed at the state level. NYC RPTT still applies to the full amount.[2]
Are co-op share transfers treated the same as deed transfers?
Substantially yes. NYC RPTT applies to co-op share sales at the same rates as deed transfers. For NYS RETT on co-op share sales, the underlying building mortgage is excluded from the taxable base for residential units. Co-op transfers have additional procedural requirements, including special schedules on the TP-584-NYC and transfer agent affidavits.[1][2]
Are there any pending 2026 changes to these rates?
As of mid-2026, no rate increases have been enacted into law. Legislative proposals in early 2026 would have raised NYC RPTT rates significantly on high-value residential sales, but none have passed. The rates described in this guide reflect current law.[9]
References
- NYC Administrative Code Title 11, Chapter 21 (§11-2101 et seq.) — NYC Real Property Transfer Tax.
Establishes the NYC RPTT, its rate structure (1%/1.425% residential; 1.425%/2.625% other), the Type 1/2 residential classification, exemptions (§11-2106), filing via ACRIS, and seller primary liability.
NYC Department of Finance — RPTT page: nyc.gov/finance — RPTT - NY Tax Law §1402 — NYS Real Estate Transfer Tax Base Rate and NYC Surcharge.
Sets the $2 per $500 base rate (0.4%) on all statewide transfers, the mortgage exclusion rule for qualifying residential transfers under $500k (§1402(b)), and the NYC 0.25% surcharge on all property types ≥$2M, effective 7/1/2019.
NY State Legislature: nysenate.gov — Tax Law §1402 - NY Tax Law §1402-a — NYS Mansion Tax.
Imposes a 1% tax on transfers of residential real property at a price of $1,000,000 or more. Buyer is the liable party. Applies to 1–3 family homes, condos, co-ops, and mixed-use properties with a residential component.
NY State Legislature: nysenate.gov — Tax Law §1402-a - NYC Department of Finance — RPTT Rate Guide and NYC-RPT Filing Instructions.
Official plain-language explanation of residential Type 1/2 classification, rate thresholds, ACRIS filing process, 30-day deadline, and co-op transfer rules.
nyc.gov/site/finance/taxes/property-real-property-transfer-tax-rptt.page - NY Tax Law §1402-b — NYC Progressive Supplemental Real Estate Transfer Tax.
Establishes the progressive supplemental tax on NYC residential and mixed-use transfers ≥$2M, with rates ranging from 0.25% (at $2M) to 2.90% (at $25M and above). Effective 7/1/2019.
NY State Legislature: nysenate.gov — Tax Law §1402-b - NY Tax Law §1405 — NYS RETT Exemptions.
Lists exempt transfers including transfers to government bodies, bona fide gifts, transfers securing debt, mere changes in form of ownership, partition deeds, and federal bankruptcy conveyances.
NY State Legislature: nysenate.gov — Tax Law §1405 - NYS Department of Taxation and Finance — TP-584-NYC Instructions and Filing Deadlines.
Covers the 15-day filing requirement for NYC properties, penalty structure (10% + 2%/month for NYS), the TP-584.6-NYC apportionment schedule for multi-parcel transfers, and co-op cooperative information return requirements.
NYS DTF: tax.ny.gov/pit/mortgage/transfer.htm - NYC Mortgage Recording Tax (MRT) Rates.
NYC local MRT rates (1.80%–2.80% city, depending on loan size and property type) and NYS MRT (0.50% basic + 0.25% special + 0.30% additional for NYC MCTD), including the $10,000 NYS basic MRT exemption on 1–2 family mortgages. NYC DOF and NYS DTF are the authoritative sources.
NYC DOF: nyc.gov — Mortgage Recording Tax - 2026 Legislative Proposals — Proposed NYC RPTT Rate Increases.
Early 2026 proposals in the New York State Legislature would have raised RPTT rates on high-value residential transfers. As of the date of this publication, no such increase has been enacted. Current rates remain as set out in NYC Administrative Code §11-2101 and in effect since 1989.
Reference: NYS Legislature bill tracking, 2026 session
Disclaimer: This guide is for general informational purposes only and does not constitute legal or tax advice. Transfer tax rules are complex and fact-specific. Always consult a licensed New York real estate attorney or CPA before closing on a property. Rates shown reflect current enacted law as of mid-2026.