When you sell a home in New York City you usually owe two transfer taxes: the city's Real Property Transfer Tax (RPTT) and New York State's real estate transfer tax. For a typical home sale over $500,000 they add up to 1.825% of the price, and 2.075% at $3 million or more. The law puts both on the seller.
At a glance
- NYC RPTT, home ≤ $500,000
- 1%
- NYC RPTT, home > $500,000
- 1.425%
- Applies to the whole price
- NYS transfer tax
- $2 per $500
- 0.4%, rounded up to the next $500
- NYS additional base tax in NYC
- +0.25%
- Homes $3M+, other property $2M+
How the calculation works
NYC RPTT. Take the price (the "consideration") and multiply by one rate. For a one- to three-family house, a condo unit or a co-op apartment the rate is 1% if the price is $500,000 or less and 1.425% if it is more. For everything else, such as a four-plus unit building, a store or land, it is 1.425% and 2.625%. The tax applies only when the consideration is more than $25,000.
NYS transfer tax. Divide the price by $500, round up to a whole number, and multiply by $2. In NYC, multiply the same count by another $1.25 when a residential sale is $3 million or more, or another property sells for $2 million or more.
The calculator does both, shows the share each tax makes up, and prints a table at sample prices so you can see where the jumps are.
Worked example
You sell a Brooklyn condo for $1,250,000.
| Step | Math | Tax |
|---|---|---|
| NYC RPTT | $1,250,000 × 1.425% | $17,812.50 |
| NYS transfer tax | 2,500 × $2 | $5,000 |
| NYS additional base tax | Under $3M, so none | $0 |
| Total | 1.825% of the price | $22,812.50 |
At exactly $3,000,000 the same condo owes $42,750 to the city and $19,500 to the state (6,000 × $3.25), for $62,250 in total, or 2.075%. Notice the rounding rule: a price of $1,250,250 is 2,500.5 units of $500, which rounds up to 2,501, so the state tax is $5,002.
The cliffs
Neither tax is marginal. One dollar over $500,000 moves the entire price from 1% to 1.425% NYC tax, which adds about $2,125. At $3 million the extra 0.25% state tax applies to the whole price, adding $7,500. If you are negotiating just above a threshold, it is worth knowing the real cost of that last dollar.
Who actually pays
The seller is liable for both taxes, and the buyer becomes liable only if the seller does not pay or is exempt. Contracts can shift the cost, and in sponsor and new-development sales the buyer commonly agrees to pay. Since July 1, 2021, when a buyer pays the NYS tax under a contract on residential property, that tax is not added to the taxable price. The calculator does not model any NYC "gross-up"; ask your attorney how the city tax will be figured on a sponsor sale.
Edge cases
- A mortgage that existed before the sale and stays on the property (rare) is left out of the NYC consideration for houses, condos and co-op units, and out of the NYS consideration for houses and condo units.
- Transfers of 50% or more of an entity that owns NYC property are taxed like a sale.
- Some transfers are exempt, such as to certain nonprofits or a mere change of form with the same owners.
What to do next
Add commissions, attorney fees and payoffs in the seller net proceeds calculator, read NYC and NYS transfer taxes explained, and check every seller closing cost.