NYC Property Transfer Tax Calculator
Calculate Your NYC Property Transfer Tax
If you’re buying or transferring property in New York City, you can’t skip the property registration fee. It’s not optional. It’s not negotiable. And if you don’t pay it correctly, your deed won’t be recorded, and you won’t legally own the property. This isn’t about bureaucracy-it’s about making sure your ownership is official, protected, and enforceable in court.
What exactly is the property registration fee in NYC?
The property registration fee in NYC is officially called the real property transfer tax. It’s a tax you pay when you record a deed with the New York City Department of Finance. This fee applies to almost every property sale, transfer, or gift in the five boroughs-Manhattan, Brooklyn, Queens, the Bronx, and Staten Island.
The amount isn’t fixed. It depends on the property’s sale price and whether it’s residential or commercial. For residential properties under $500,000, the city charges 1% of the sale price. For properties $500,000 and above, the rate jumps to 1.425%. There’s also a separate state transfer tax of 0.4% that applies to all sales, regardless of price. So if you buy a $750,000 condo, you’ll pay about $10,687.50 in city tax plus $3,000 in state tax-totaling nearly $13,700 just for registration.
These fees are not paid to your real estate agent or lender. They go directly to the city and state. And they’re due at closing-no exceptions.
Who pays the property registration fee?
In most cases, the buyer pays the transfer tax. That’s the standard practice in NYC. But it’s not written in stone. Sometimes, especially in new developments or during soft markets, sellers will agree to pay part or all of the fee as a negotiation tactic. If you’re buying, ask your attorney or agent: “Is the transfer tax included in the purchase price, or is it extra?” Don’t assume. Always confirm.
For commercial properties, the rules are the same, but the rates are higher. The city charges 1.425% on sales under $2 million and 2.625% on sales above $2 million. Plus, the state tax still applies. If you’re buying a $3 million office building, you’re looking at over $78,000 in transfer taxes alone.
How do you actually pay the fee?
You don’t pay this fee online by yourself. You can’t just log in and click “Pay Now.” The process is handled through your attorney or title company at closing. Here’s how it works:
- Your attorney prepares the deed and all necessary forms, including the Form TP-584 (New York State Real Property Transfer Tax Return).
- You or your lender provide the funds for closing, including the transfer tax amount.
- At closing, your attorney collects the money and submits the deed and tax forms to the NYC Department of Finance’s Real Property Services Division.
- The department reviews the documents, calculates the correct tax, and processes payment.
- Once paid, they record the deed in the County Clerk’s office (Manhattan: New York County Clerk; Brooklyn: Kings County Clerk, etc.).
You’ll get a copy of the recorded deed within 4 to 6 weeks. If you need it sooner, you can request expedited service for an extra $100 fee.
Some buyers try to pay directly through the city’s website. That doesn’t work. The city doesn’t accept direct payments for transfer taxes before closing. The system is designed to tie payment to the legal transfer of ownership. So don’t waste time trying to pay early.
What happens if you don’t pay?
If the transfer tax isn’t paid, the deed won’t be recorded. That means:
- You don’t legally own the property-even if you signed papers and handed over a check.
- You can’t get a mortgage on it later because lenders require a recorded deed.
- You can’t sell it without clearing the lien.
- The city can place a lien on the property for unpaid taxes, which will show up in title searches.
This isn’t a small paperwork issue. It’s a legal roadblock that can cost you months and thousands in legal fees to fix. I’ve seen buyers lose deals because their attorney forgot to include the transfer tax in the closing statement. Don’t let that be you.
Can you reduce the fee?
Yes-sometimes. There are legal ways to lower the tax burden, but they require planning and professional help.
One common method is using a limited liability company (LLC) to buy the property. If you transfer ownership of the LLC instead of the property itself, you may avoid the transfer tax. This only works if the LLC was formed before the sale and the property is the LLC’s only asset. It’s not a loophole-it’s a legal structure used by investors and trusts. But it requires a lawyer who knows real estate law inside and out.
Another option: if you’re buying from a family member, you might qualify for a family transfer exemption. This applies to gifts between spouses, parents, children, or siblings. You still have to file Form TP-584 and prove the relationship with birth certificates or marriage licenses. The city doesn’t automatically know you’re related. You have to prove it.
Don’t try to understate the sale price to reduce the tax. That’s fraud. The city cross-checks sale prices with mortgage records, MLS listings, and bank transfers. If they find a discrepancy, you’ll face penalties, interest, and possible criminal charges.
What documents do you need?
Before closing, make sure you have these ready:
- Completed Form TP-584 (state transfer tax return)
- Form TP-584-NYC (city transfer tax return)
- Original signed deed
- Proof of payment for the tax (usually handled by your attorney)
- Photo ID for all parties signing the deed
- Social Security numbers or ITINs for all owners
If you’re using an LLC, you’ll also need articles of organization, operating agreement, and proof of ownership transfer. Your attorney will handle most of this, but if you’re doing it yourself (not recommended), you’ll need to know exactly what to submit.
How long does it take to get the deed recorded?
Standard processing takes 4 to 6 weeks. If you need it faster, you can pay $100 for expedited service, and you’ll get it in 5 to 10 business days. Some title companies offer this as part of their closing package. Ask your attorney if they include it.
After recording, you’ll get a stamped copy of your deed. Keep it in a fireproof safe or safety deposit box. You’ll need it if you ever sell, refinance, or dispute ownership.
What if you’re buying a co-op or condo?
Co-ops are different. You’re not buying real property-you’re buying shares in a corporation that owns the building. So there’s no deed to record. But you still pay a transfer tax on the share transfer. The tax rate is the same: 1% or 1.425% depending on price. The process is handled by the co-op board’s attorney and the managing agent.
Condos are treated like regular real estate. You get a deed, you pay the tax, and you record it with the County Clerk. Same rules apply.
What’s the most common mistake people make?
Waiting until the last minute to confirm the fee amount. Buyers often think their real estate agent or lender will handle everything. But if the attorney doesn’t include the transfer tax in the closing statement, you could show up with the wrong amount. That delays closing. It can cost you thousands in penalties or lost interest if your loan rate is locked.
Another mistake: thinking the fee is the same as property taxes. Property taxes are paid annually to the city. Transfer tax is a one-time fee at closing. Confusing them leads to budgeting errors.
Where can you get help?
Don’t rely on online calculators alone. They don’t account for exemptions, special districts, or recent changes in tax law. The best resource is the NYC Department of Finance’s official page on transfer taxes. They have downloadable forms, current rates, and FAQs.
But if you’re serious about avoiding mistakes, hire a real estate attorney who works in NYC. A good one will run the numbers, explain your options, and make sure the tax is paid correctly. It’s not expensive-usually $1,500 to $3,000 for a standard sale. That’s a small price to pay to avoid a legal disaster.
Final tip: Know your numbers before closing
Before you sign anything, ask your attorney: “What’s the total transfer tax?” Then double-check it yourself. Use this formula:
- City tax: 1% for under $500,000, 1.425% for $500,000+
- State tax: 0.4% on the full sale price
- Total = City tax + State tax
If you’re buying a $600,000 apartment:
- City tax: $600,000 × 1.425% = $8,550
- State tax: $600,000 × 0.4% = $2,400
- Total: $10,950
Write it down. Confirm it. Don’t assume. This is your money. Your property. Your future.
Do I have to pay the property registration fee if I inherit a property in NYC?
No, you don’t pay the transfer tax if you inherit property from a family member. Inheritance is exempt from both city and state transfer taxes. But you still need to file Form TP-584 and check the “inheritance” box. You’ll also need a death certificate and proof of relationship. The deed will be recorded as a transfer by operation of law, not a sale.
Can I pay the property registration fee in installments?
No. The full amount must be paid at closing. The city does not allow installment plans for transfer taxes. If you can’t afford it, you’ll need to delay the closing, renegotiate the purchase price, or secure additional funds. There are no exceptions.
Is the property registration fee the same in all five boroughs?
Yes. The transfer tax rates are set by New York State and NYC law, so they’re the same in Manhattan, Brooklyn, Queens, the Bronx, and Staten Island. The only difference is which County Clerk’s office records your deed, but the fee doesn’t change.
What if I’m buying from a developer? Do I still pay the fee?
Yes. Even if you’re buying a new condo directly from a developer, you still pay the full transfer tax. Some developers advertise “no transfer tax” but that usually means they’re covering it themselves-meaning they’ve already factored it into the price. Always ask: “Is the tax included in the price, or is it extra?”
Can I use a wire transfer to pay the fee?
Yes, but not directly. You don’t wire money to the city. Your attorney collects the funds as part of the closing and wires the tax payment to the city’s designated account. You’ll see the payment on your closing statement. Never send money directly to any government office unless your attorney instructs you to.
