NYC RPTT Rate
1.00%
Current NYC Real Property Transfer Tax rate.
Real Estate
Updated for 2026
NYC Transfer Tax Calculator (2026) – RPTT & Mansion Tax
Last Updated: April 22, 2026
Estimate New York City RPTT, New York State transfer tax, and mansion tax based on current 2026 public rate references.
This calculator is for general education and planning only. It is not legal, tax, accounting, or closing-cost advice. Confirm the result with your attorney, CPA, title company, or the relevant tax agency before relying on it for a transaction.
Estimated NYC RPTT
$0.00
NYC City-level transfer tax.
Estimated NYS Tax
$0.00
NYS State-level base transfer tax.
Total Estimated Taxes
$0.00
Combined City and State taxes.
The Definitive NYC Transfer Tax Encyclopedia (2026 Edition)
Buying or selling a property in New York City is not just a real estate transaction; it is a complex navigation through a multi-layered tax environment. The Real Property Transfer Tax (RPTT) and the New York State Transfer Tax represent some of the most significant line items on a closing statement. This guide provides over 2,000 words of actionable, factual intelligence to help you master these costs.
1. Understanding the Core Rates
NYC taxes property transfers based on two primary factors: the property class and the consideration (sale price).
| Property Type | Under $500,000 | $500,000 & Above |
|---|---|---|
| Residential (1-3 Family, Condo, Co-op) | 1.000% | 1.425% |
| Commercial & Multi-Family (4+ Units) | 1.425% | 2.625% |
Note: "Consideration" includes the cash paid plus the amount of any mortgage or lien remaining on the property at the time of transfer.
Quick Calculation Shortcut
For a typical $1.2M condo resale in NYC:
- NYC RPTT (1.425%) $17,100
- NYS Tax (0.4%) $4,800
- Total Seller Tax $21,900
2. The Filing Process: ACRIS, Forms, and Timelines
In New York City, the payment of transfer tax is inextricably linked with the filing of the Real Property Transfer Tax Return (Form NYC-RPT). This process is managed through ACRIS (Automated City Register Information System).
The 30-Day Rule
You have exactly 30 days from the date of the transfer (usually the closing date) to file the return and pay the tax. Failure to do so triggers immediate penalties and interest.
Penalty Scenarios
Late filing penalties start at 5% of the tax due for each month of delay, up to a maximum of 25%. Interest is also charged, currently calculated at a rate determined by the NYC Department of Finance.
For properties in Staten Island (Richmond County), filings are not done through ACRIS but through the Richmond County Clerk's office, though the tax rates remain the same.
3. Deep Dive: Transfer Tax vs. Cost Basis Math
A common question is: "Can I deduct NYC transfer tax on my income tax return?" The answer is nuanced. While you cannot "deduct" it as an itemized expense like property taxes, it plays a vital role in your Cost Basis.
The Financial Lifecycle of a $1M Purchase
Scenario A: Standard Resale (Seller Pays Tax)
The seller receives $1,000,000 but pays $18,250 in taxes. On their tax return, their "Amount Realized" is $981,750. This effectively reduces their taxable capital gain.
Scenario B: Sponsor Sale (Buyer Pays Tax)
The buyer pays $1,000,000 to the seller PLUS $18,250 in taxes to NYC/NYS. The buyer's adjusted cost basis becomes $1,018,250. When they sell the property years later for $1.5M, their taxable gain is calculated from this higher basis, saving them thousands in capital gains tax.
4. The "4-Unit Trap" & Mixed-Use Complexity
One of the most dangerous pitfalls for small-scale investors is the 4-unit classification jump. In NYC, a 3-unit building is "Residential," but a 4-unit building is taxed at the "All Other Types" (Commercial) rate.
The 4-Unit Rate Cliff ($1,000,000 Sale)
3-Unit (Residential)
1.425%
$14,250 RPTT
4-Unit (Commercial)
2.625%
$26,250 RPTT
Mixed-Use Properties: If a building contains both residential and commercial space, the classification depends on the predominant use. However, if there is any commercial use in a building with 1-3 residential units, it typically retains the lower residential rate for RPTT, provided it doesn't cross the unit count threshold.
5. Progressive Mansion Tax Tiers (2026)
While transfer taxes are the seller's domain, the NYS Mansion Tax is the buyer's burden. It is a progressive tax that triggers at exactly $1,000,000.
$1,000,000 - $1,999,9991.00%
$2,000,000 - $2,999,9991.25%
$3,000,000 - $4,999,9991.50%
$5,000,000 - $9,999,9992.25%
$10,000,000 - $14,999,9993.25%
$15,000,000 - $19,999,9993.50%
$20,000,000 - $24,999,9993.75%
$25,000,000+3.90%
6. Negotiation Strategies: Who Pays What?
The NYC real estate market is highly transactional, and everything—including tax responsibility—can be negotiated.
- 1
The "Gross-Up" Offer
In a slow market, a buyer might offer a higher price but ask the seller to pay the Mansion Tax. Because the Mansion Tax is legally a buyer's tax, the seller paying it is considered a "concession" and must be carefully worded in the contract to avoid "taxing the tax."
- 2
Sponsor Sale Credits
Buyers of new construction should always try to negotiate a "credit" for transfer taxes. While the developer's contract says the buyer pays, a savvy buyer's attorney will ask the developer to cover these costs as a closing incentive.
- 3
The $999,000 Strategy
Properties listed at $1,050,000 often sell for $999,000 because the "Mansion Tax Cliff" at $1M adds $10,000+ to the buyer's cost. Sellers often accept a slightly lower price to keep the buyer under the threshold.
7. Entity Transfers & Article 31 (The 50% Rule)
You don't just pay transfer tax when you record a deed. You also pay it when you transfer a controlling interest (50% or more) in an entity that owns real property in New York.
This is governed by Article 31 of the NYS Tax Law. If you own an LLC that holds a commercial building in Brooklyn and you sell 51% of that LLC to a partner, NYC and NYS will treat that as a taxable transfer of the underlying real estate, even though no new deed is filed in ACRIS.
8. Inherited Property & "Love & Affection" Transfers
Transferring property to a family member or via an estate can sometimes be tax-exempt, but it is a common area for audits.
True Gifts
A transfer with "zero consideration" (no money, no mortgage payoff) is generally exempt from RPTT. However, you must still file the RPT return and prove the "Love & Affection" status to the Department of Finance.
Mortgage Assumption
If you "gift" a property but the recipient assumes the existing $400,000 mortgage, NYC considers that $400,000 to be consideration. You will owe RPTT on that $400,000 balance.
9. 2026 Policy Outlook & Historical Context
NYC's transfer taxes have historically been a primary lever for city revenue. Since the introduction of the "Peat Tax" (supplemental rate) and the progressive Mansion Tax tiers in 2019, the tax burden on high-end NYC real estate has reached historic highs.
Looking into 2026, there is ongoing debate in the City Council regarding "Pied-à-terre" taxes and further adjustments to the Mansion Tax. Staying updated with a professional calculator is essential for any multi-year planning.
Final Practical Takeaway
Never rely on a "back-of-the-napkin" estimate for NYC closing costs. A 0.5% error on a $2 million sale is $10,000—enough to derail a deal at the closing table. Always use a dynamic calculator and verify the "Property Class" with your title company or attorney early in the process.
Expanded NYC Real Estate FAQs (Master List)
What is the NYC Real Property Transfer Tax (RPTT)?
RPTT is a tax levied by New York City on the transfer of real property or interests in real property (like co-op shares). It applies to nearly all transactions over $25,000 within the five boroughs. The rate is determined by the property type and the sale price, with a significant rate jump at the $500,000 threshold.
Who pays the transfer tax in NYC: Buyer or Seller?
In a standard resale, the seller is legally responsible for paying both NYC RPTT and NYS Transfer Tax. However, in 'Sponsor Sales' (new construction or condo conversions), the buyer is almost always contractually required to pay these taxes, which can add tens of thousands to their closing costs.
Do co-ops pay transfer tax in New York City?
Yes. While co-op buyers save on Mortgage Recording Tax and Title Insurance, they (or the seller) must still pay the NYC RPTT and NYS Transfer Tax. Co-ops have been subject to these taxes since 1989 because the sale of shares is considered a transfer of an interest in real property.
What is the Mansion Tax, and when does it apply?
The Mansion Tax is a New York State tax on residential purchases of $1 million or more. It starts at 1% for sales between $1M and $2M and scales progressively up to 3.9% for sales of $25M+. Unlike transfer taxes, the Mansion Tax is almost always paid by the buyer.
Is NYC transfer tax tax-deductible?
Generally, transfer taxes are not deductible as an itemized expense. However, for the seller, they are treated as a cost of sale which reduces the capital gain (lowering potential capital gains tax). For the buyer, if they pay the tax, it is added to their 'cost basis,' which reduces their future capital gains when they sell.
What is the 'Peat Tax' in NYC?
The 'Peat Tax' refers to the supplemental New York State transfer tax rate of 0.25% (totaling 0.65%) that applies to residential transfers over $3 million and commercial transfers over $2 million within New York City.
Does the 4-unit rule affect transfer tax rates?
Yes. Properties with 1-3 residential units are taxed at the 'Residential' rate. If a property has 4 or more residential units, NYC classifies it as 'All Other Types' (Commercial), which triggers a much higher RPTT rate of 2.625% if the price is over $500,000.
How do you calculate transfer tax on a gift or 'love and affection' transfer?
Even if no money changes hands, the tax may be based on the remaining mortgage balance on the property. If there is no mortgage and no consideration, the tax may be zero, but a return must still be filed (Form NYC-RPT).
Can I use a 1031 Exchange to avoid NYC Transfer Tax?
No. A 1031 Exchange allows you to defer Federal and State capital gains taxes, but it does NOT defer or exempt you from NYC Real Property Transfer Tax or NYS Transfer Tax. Those must be paid at every closing.
What is the 'controlling interest' transfer tax?
If you sell 50% or more of an entity (LLC, Corp) that owns NYC real estate, you must file a transfer tax return. The city looks through the entity to the real estate value.
Is there a transfer tax on HDFC co-ops?
Yes, but some HDFC transfers may be subject to different 'Flip Tax' rules mandated by the city's regulatory agreement. The standard NYC RPTT still applies based on the sale price.
Does the buyer pay RPTT in a foreclosure sale?
Usually, the buyer in a foreclosure or REO sale is responsible for the transfer taxes, which is a major difference from a standard resale.
Related Guides
Go deeper on NYC closing costs and how transfer taxes fit into the full picture.