What Are the Updated NYS Transfer Tax Rates in NYC as of 2019: https://www.hauseit.com/changes-to-nyc-mansion-tax-nys-transfer-tax-2019/
List with a Full Service Agent for 1%: https://www.hauseit.com/agent-managed-listing/
The New York State Transfer Tax for sellers was previously a fixed 0.4% of the sale price. As part of the 2019 update, a higher tax bracket of 0.65% was created for sale prices of $3 million or more. The higher 0.65% tax bracket was also adopted for commercial transactions, however it kicks in starting at $2 million as opposed to higher $3 million threshold for residential deals.
As a seller in NYC, you are responsible for both NYC and NYS Transfer Taxes.
The NYC Transfer Tax rates were not affected by the 2019 legislation, as it only impacted the NY State Transfer Tax as well as the Mansion Tax. The NYC Transfer Tax remains at 1% for sale prices of $500k or less and 1.425% for anything above $500k.
The combined NYC and NYS Transfer Tax rates for sellers are as follows:
1.4% for sales below $500k
1.825% for sales of $500k or more and less than $3 million
2.075% for sales of $3 million or more
The NYC and NYS components of these Transfer Tax rates are as follows:
1.4%, consisting of 0.4% for NYS, and 1% for NYC
1.825%, consisting of 0.4% for NYS, and 1.425% for NYC
2.075%, consisting of 0.65% for NYS, and 1.425% for NYC
The New York City Real Property Transfer Tax is authorized by the New York Tax Law Section 1201(b) and enacted by Title 11 (Chapter 21) of the New York City Administrative Code. The New York State Transfer Taxes (including the Mansion Tax) are authorized by New York Consolidated Laws, Tax Law Section 1402.
Seller closing costs in NYC are between 8% to 10% of the sale price. Closing costs include a 6% broker fee, NYC and NYS Transfer Taxes of 1.4% to 2.075%, a flip tax for co-ops and miscellaneous fees.
These fees include real estate attorney fees of $2k to $3k, a bank loan satisfaction fee if there’s an outstanding mortgage, filing fees and move-out fees and deposits in the case of condos and co-ops.
Seller closing costs are usually higher for co-ops than condos because most co-ops charge sellers a flip tax. The average co-op apartment flip tax in NYC is 1% to 3% of the sale price, and it’s customarily paid by the seller. The flip tax varies by building, and in rare instances you may even encounter a condo which charges a flip tax in New York City.
You can estimate your seller closing costs in NYC using Hauseit’s interactive closing cost for sellers available at www.hauseit.com
Looking to buy or sell a home in New York City? Learn how you can save on commission and closing costs at https://www.hauseit.com
Save up to 6% in Broker Commission: https://www.hauseit.com/fsbo-nyc/
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