What Every Seller Should Know About NYC Transfer Taxes

Selling property in New York City comes with a number of unique costs — and transfer taxes are often one of the biggest surprises for first-time sellers. In NYC, sellers are responsible for paying both the New York City and New York State transfer taxes at closing. For residential properties, the NYC transfer tax is 1% if the sale price is $500,000 or less, and 1.425% if the sale price is over $500,000. In addition, New York State imposes a transfer tax of 0.4% on all residential transfers under $3,000,000. For properties selling at $3,000,000 or more, the state tax increases to 0.65%.

Understanding these costs early helps sellers plan ahead and avoid unpleasant surprises at the closing table. Because transfer taxes are deducted from the seller’s proceeds, knowing the numbers in advance allows the seller to budget accurately and calculate their true net proceeds from the sale.

One of our key roles as attorneys is to prepare a detailed closing statement early in the process so that sellers know exactly what to expect. By discussing transfer taxes up front — along with other costs like brokerage commissions and flip taxes — we help clients avoid last-minute stress and move confidently toward a smooth closing.