How the calculation works
Your net proceeds are the sale price, minus every selling cost, minus what you still owe on your mortgage or co-op loan, plus any credits the buyer pays you back at closing. The calculator works out the two transfer taxes automatically. Everything else, such as the commission and attorney fee, comes from your own numbers, because those are negotiated or set by your building.
The transfer taxes
In New York City the seller pays two transfer taxes: the city's Administrative Code (§11-2104) puts the city tax on the seller, and the state Tax Department says the same for the state tax, unless the contract shifts it to the buyer. The city tax (RPTT) is a flat percentage of the whole price, and the rate jumps once the price is over $500,000. The state tax is $2 for every $500 of price, or part of $500. On NYC residential sales of $3 million or more, the state adds a further $1.25 per $500.
| Sale price | NYC RPTT | NYS tax | Combined |
|---|---|---|---|
| $500,000 or less | 1.000% | 0.40% | 1.400% |
| $500,001 – $2,999,999 | 1.425% | 0.40% | 1.825% |
| $3,000,000 or more | 1.425% | 0.65% | 2.075% |
The RPTT residential rates cover one- to three-family houses, individual condo units and individual co-op apartments. Because both taxes apply to the full price, selling for just over $500,000 costs more in city tax than selling for exactly $500,000.
Worked example
You sell a condo for $1,200,000 and owe $500,000 on your mortgage. You agreed to a 5% commission.
- Broker commission: $60,000
- NYC RPTT: $1,200,000 × 1.425% = $17,100
- NYS transfer tax: 2,400 units of $500 × $2 = $4,800
- Attorney $3,000, managing agent fees $750, payoff fees $500
Selling costs total $86,150, or about 7.2% of the price. After the $500,000 payoff, you walk away with about $613,850 before income tax. If you sold the same apartment as a co-op with a 1% flip tax, add another $12,000 in costs.
Co-op and condo extras
- Flip tax: some co-ops charge one when an apartment sells. The building's rules decide whether it is a percentage of the price, a percentage of profit or a flat amount. Ask the managing agent, or use the flip tax calculator.
- Building fees: co-ops and condos may charge move-out, processing or transfer agent fees. Get the list from the managing agent early.
- Credits and prorations: if you prepaid property tax, maintenance or common charges past the closing date, the closing adjustments can credit that back to you. Enter that as a credit.
What this does not include
The result is cash at closing, not profit after tax. If you sell for more than you paid, you may owe capital gains tax. Estimate it with the home sale capital gains calculator. If you are not a New York resident, the state collects estimated income tax at closing; see the nonresident seller estimated tax calculator. For a line-by-line list of costs, read NYC seller closing costs.