Key Takeaways
- New York has both state and local transfer taxes (including NYC transfer tax)
- The NY state transfer tax rate is $2 per $500 (0.4%) for most transfers
- NYC has an additional transfer tax of 1% (under $500K) or 1.425% (over $500K)
- The mansion tax applies to NYC properties over $1 million (1% or more)
- Property taxes in NY are assessed locally with various exemptions available
Last updated: January 2026
Real Estate Taxes & Transfer Taxes
New York has a complex system of real estate taxes.
NY State Transfer Tax
Basic Rate
| Consideration | Rate |
|---|---|
| Standard | $2 per $500 (0.4%) |
| $1 million+ | $2 per $500 (same) |
Calculation
| Sale Price | Tax Calculation | Total Tax |
|---|---|---|
| $300,000 | ($300,000 ÷ $500) × $2 | $1,200 |
| $500,000 | ($500,000 ÷ $500) × $2 | $2,000 |
| $1,000,000 | ($1,000,000 ÷ $500) × $2 | $4,000 |
Who Pays
| Situation | Typical Payer |
|---|---|
| Residential | Seller pays |
| Commercial | Negotiable |
| Exemptions | Government, nonprofits |
NYC Transfer Tax (Additional)
NYC has its own transfer tax on top of state:
Residential
| Consideration | NYC Rate |
|---|---|
| Under $500,000 | 1.0% |
| $500,000 and over | 1.425% |
Commercial
| Consideration | NYC Rate |
|---|---|
| Under $500,000 | 1.425% |
| $500,000 and over | 2.625% |
NYC Mansion Tax
Applies to residential purchases $1 million and over:
| Sale Price | Mansion Tax Rate |
|---|---|
| $1-2 million | 1.00% |
| $2-3 million | 1.25% |
| $3-5 million | 1.50% |
| $5-10 million | 2.25% |
| $10-15 million | 3.25% |
| $15-20 million | 3.50% |
| $20-25 million | 3.75% |
| $25 million+ | 3.90% |
Note: Mansion tax is paid by the BUYER.
Total Transfer Tax Example (NYC)
| Item | $2,000,000 Sale |
|---|---|
| State transfer tax | $8,000 (seller) |
| NYC transfer tax | $28,500 (seller) |
| Mansion tax | $25,000 (buyer) |
| Total taxes | $61,500 |
Property Taxes
Assessment
| Concept | Description |
|---|---|
| Assessed value | Determined by assessor |
| Market value | Actual property value |
| Assessment ratio | % of market value taxed |
| Tax rate | Mills or per thousand |
Exemptions
| Exemption | Who Qualifies |
|---|---|
| STAR | Homeowners (seniors enhanced) |
| Veterans | Service members |
| Nonprofit | Religious, charitable |
| Senior citizen | Age/income limits |
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Test Your Knowledge
What is the New York State transfer tax rate?
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Test Your Knowledge
Who pays the NYC mansion tax?
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