Figuring out the NYS and NYC Transfer Tax

What’s The NYS And NYC Transfer Tax?

NYC and NYS Real Property Transfer Taxes (RPTT) are paid on all sales of real property and co-op shares. The amount of the NYC tax is 1% for transactions below $500k and 1.425% for those above. NYS charges .4% for all transactions below $3m and .65% for those above.

Who Pays The Transfer Tax?

The transfer tax is a tax imposed on the seller and is most often their responsibility to pay. The only circumstances in which the buyer would be responsible would be if responsibility being transferred to the buyer was a point of negotiation (more common in new development), or the seller simply disappeared without paying. Regardless, the City and State will collect the tax.

Is Anyone Exempt From The Tax?

If you’re reading this, you’re unfortunately almost certain to pay the tax on the sale of your home. The few exceptions for arms-length transactions, from NYC.gov:

  • The United States Government and its agencies;
  • New York State, its agencies and political subdivisions; and
  • A foreign government, a person acting on behalf of a foreign government, or the head of a foreign government’s diplomatic mission.  The premises must be used exclusively for diplomatic or consular purposes. Other usage may result in the payment of tax.

How are the RE Transfer Taxes Filed and Paid?

In the sale of a co-op, seller’s attorney will send payment to the county clerk. In the sale of real property, like a condo or house, the title company will send payment.