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New York Conveyance Tax
In New York, conveyance taxes are a combination of state, and sometimes local, transfer taxes levied on the transfer of real property. These taxes are generally paid by the seller, but buyers often pay additional taxes on high-value properties.
New York State Real Estate Transfer Tax (RETT)
This tax applies to most transfers of real property or interests in property.
- General rate: The tax is $2 for each $500 of consideration (or 0.4%).
- Who pays: The seller typically pays the state RETT.
- Residential property exemption: In the rare instance a seller does not pay, and the property is a residential unit, the tax is not included in the calculation for the buyer.
New York State “Mansion Tax”
This is an additional tax for residential properties sold for $1 million or more.
- Rate: The rate is a progressive surcharge, with the lowest rate of 1% on sales between $1 million and $2 million, and a highest rate of 3.9% on sales of $25 million or more.
- Who pays: The buyer is responsible for paying the mansion tax.
New York City Real Property Transfer Tax (RPTT)
Properties located within New York City are subject to an additional municipal tax, paid in addition to the state taxes.
For residential properties (1–3 family homes, co-ops, and condos)
- Transfers up to $500,000: 1% of the sale price.
- Transfers over $500,000: 1.425% of the sale price.
For commercial properties
- Transfers up to $500,000: 1.425% of the sale price.
- Transfers over $500,000: 2.625% of the sale price.