Property Transfer Fee NYC: What You Really Pay When Buying or Selling in New York

When you buy or sell a property in property transfer fee NYC, a mandatory tax paid to the city during real estate transactions, typically split between buyer and seller. Also known as real estate transfer tax, it’s not just a line item on your closing statement—it’s a major part of what makes New York real estate expensive. Unlike other cities where this fee is flat or low, NYC’s transfer tax stacks on top of other costs like title insurance, attorney fees, and mortgage recording taxes. For a $1 million home, you could pay over $20,000 just in transfer-related charges. Most buyers don’t realize this until closing day—and that’s when the shock hits.

The real estate transfer tax NYC, a state and city tax applied to property sales above certain thresholds, with rates varying by property type and price. Also known as NYC property closing costs, it’s calculated in tiers: 1% for sales under $500,000, 1.425% for higher values, plus a separate 0.4% city tax on residential sales. Commercial properties pay even more. And if you’re buying a co-op? The building might charge its own transfer fee on top. These aren’t optional. They’re baked into every deal. Sellers often think they’re off the hook, but in practice, buyers demand concessions. That means the seller ends up paying part of it anyway—either through a lower price or direct payment at closing.

What trips people up is the confusion between transfer tax and other fees. A real estate transaction fees, the full set of charges tied to closing a property deal, including transfer taxes, title services, and recording fees. Also known as NYC home buying costs, it includes things like the mansion tax (for sales over $1 million), mortgage recording tax (if you’re financing), and broker commissions. These aren’t hidden—they’re just buried in fine print. If you’re selling, you’re responsible for the state transfer tax. If you’re buying, you pay the city’s portion and the mortgage tax. And if you’re flipping a property? The tax rate jumps even higher. There’s no way around it. But you can plan for it.

People in other states assume real estate costs are similar everywhere. They’re not. In Texas or Florida, transfer taxes are a fraction of what you pay in NYC. That’s why out-of-state buyers get blindsided. They budget for the down payment and mortgage, but forget the city’s cut. The same goes for sellers who list at market value without factoring in how much they’ll actually walk away with. The property transfer fee NYC eats into profits fast. That’s why smart investors use it to their advantage—negotiating credits, timing sales to avoid higher brackets, or structuring deals as commercial transfers to lower rates.

Below, you’ll find real examples from people who’ve been through this—what they paid, what they didn’t expect, and how they handled it. No fluff. No theory. Just what actually happens when you buy or sell in New York City.