Overview of Real Estate Closing Costs in New York (2026)
New York real estate transactions are subject to some of the most intricate tax and legal fee structures in the United States. In addition to standard lender origination charges and title fees, transactions in New York City (NYC) and New York State (NYS) must navigate three major statutory levies: the New York Mortgage Recording Tax (MRT), the NYS Mansion Tax, and the NYC Real Property Transfer Tax (RPTT).
Overall, home buyers financing a property in New York State should budget 3.0% to 6.0% of the purchase price in closing costs (excluding their cash down payment). In NYC, due to the combination of the Mortgage Recording Tax (up to 1.925%) and the Mansion Tax (starting at 1.00% on $1M+ purchases), buyer costs frequently land between 3.8% and 5.5%. Sellers typically pay 7.0% to 10.0%, including broker commissions and state/city transfer taxes.
🏛️ Co-Op vs. Condo Closing Cost Distinction
Purchasing a co-op apartment in New York City saves thousands of dollars because co-ops are legally shares in a residential corporation rather than real property. Co-op buyers do not pay the Mortgage Recording Tax (saving 1.8% to 1.925%) and do not purchase title insurance, making co-op buyer closing costs roughly 1.5% to 2.5% compared to 4% to 5.5% on condos.
The New York Mansion Tax Progressive Rate Tiers (2026)
The New York State Mansion Tax is a buyer-paid transfer fee levied on residential purchases of $1,000,000 or greater. Outside NYC, the rate is a flat 1.00% on all properties $1M+. Within New York City, the Mansion Tax follows a steep progressive schedule:
| Purchase Price Range |
NYC Mansion Tax Rate |
Tax Amount on Tier |
Who Pays |
| $1,000,000 to $1,999,999 | 1.00% | $10,000 - $19,999 | Buyer |
| $2,000,000 to $2,999,999 | 1.25% | $25,000 - $37,499 | Buyer |
| $3,000,000 to $4,999,999 | 1.50% | $45,000 - $74,999 | Buyer |
| $5,000,000 to $9,999,999 | 2.25% | $112,500 - $224,999 | Buyer |
| $10,000,000 to $14,999,999 | 3.25% | $325,000 - $487,499 | Buyer |
| $15,000,000 to $19,999,999 | 3.50% | $525,000 - $699,999 | Buyer |
| $20,000,000 to $24,999,999 | 3.75% | $750,000 - $937,499 | Buyer |
| $25,000,000 and Above | 3.90% | $975,000+ | Buyer |
New York Mortgage Recording Tax (MRT) Rates Explained
Whenever a residential mortgage is recorded in New York, the borrower and lender must pay the statutory Mortgage Recording Tax. In NYC (all 5 boroughs), the rates are structured as follows:
- Mortgages Under $500,000 (1-3 Family / Condo): Total statutory tax is 2.05%. The lender pays a mandatory 0.25% credit, leaving the borrower paying 1.80%.
- Mortgages of $500,000 or Greater (1-3 Family / Condo): Total statutory tax is 2.175%. After the lender's 0.25% credit, the borrower pays 1.925%.
- Commercial Properties & Multi-Unit Buildings ($500k+): Total tax is 2.80% (borrower pays 2.55%).
- Commuter Counties (Nassau, Suffolk, Westchester): Borrower rate is typically 1.05% to 1.30%.
Itemized Buyer vs. Seller Closing Cost Responsibilities
| Fee / Closing Item |
Buyer Responsibility |
Seller Responsibility |
Customary Amount |
| NYS Transfer Tax | No (unless sponsor new build) | Yes | $2 per $500 (0.40%); 0.65% if $3M+ |
| NYC Transfer Tax (RPTT) | No (unless sponsor new build) | Yes | 1.00% (<$500k) or 1.425% ($500k+) |
| NYS Mansion Tax | Yes (on $1M+ sales) | No | 1.00% to 3.90% progressive |
| Mortgage Recording Tax | Yes (if financing condo/home) | No | 1.80% to 1.925% of loan amount |
| Real Estate Attorney Fee | Yes ($1,500 - $3,500) | Yes ($1,500 - $3,000) | Separate counsel for both parties |
| Title Insurance (Owner/Lender) | Yes (lender + optional owner) | No | TIRSA promulgated rate (~0.45%) |
| Broker Commission | No | Yes | 4.0% to 6.0% of purchase price |
| Managing Agent / Co-Op Fees | Yes ($500 - $1,500) | Yes (Move-out fee / flip tax) | Varies by building board |
Frequently Asked Questions (FAQ)
How much are typical closing costs in New York?
Buyer closing costs in New York State typically range from 3% to 6% of the purchase price when financing (1.5% to 3% for all-cash purchases). In NYC, buyer closing costs frequently exceed 4% to 6.5% due to the Mortgage Recording Tax (1.80% to 1.925%) and the Mansion Tax (1.00% to 3.90% on homes $1M+). Seller closing costs typically total 7% to 10%.
What is the New York Mansion Tax and who pays it?
The NYS Mansion Tax is a progressive real estate transfer surcharge levied on residential purchases of $1,000,000 or more, paid entirely by the buyer. The rate starts at 1.00% on homes between $1M and $1.99M, scaling up to 3.90% on purchases of $25M+ in NYC.
What is the New York Mortgage Recording Tax (MRT)?
The Mortgage Recording Tax is charged whenever a mortgage is recorded. In NYC, the borrower pays 1.80% on loans under $500,000 and 1.925% on loans of $500,000+. Co-op apartments are exempt from this tax because they involve shares rather than real property deeds.
Do co-op apartments in NYC pay the same closing costs as condos?
No. Co-op closing costs are significantly lower for buyers because co-ops do NOT pay the New York Mortgage Recording Tax (saving 1.8%-1.925%) and do not require title insurance (saving 0.4%-0.6%). Co-op buyers pay approximately 1.5% to 2.5% in closing fees.
Who pays the New York State & NYC Transfer Taxes?
Transfer taxes in New York are customarily paid by the seller. NY State charges 0.40% (0.65% if $3M+ in NYC), while NYC charges 1.00% under $500k and 1.425% for $500k+. On new construction sponsor sales, buyers are often contractually required to pay these taxes.
Is a real estate attorney legally required in New York?
Yes. Under New York practice and legal precedent, all real estate closings require a licensed attorney to draft contracts, hold escrow funds, examine title, and oversee closing execution. Attorney fees range from $1,500 to $3,500.
What is a CEMA loan and how does it save on NY Mortgage Recording Tax?
A Consolidation, Extension, and Modification Agreement (CEMA) allows a borrower to assign and consolidate an existing mortgage rather than creating a new loan, limiting Mortgage Recording Tax only to the 'new money' borrowed and saving thousands in taxes.
How much are closing costs on a $1,200,000 NYC condo?
On a $1,200,000 NYC condo with 20% down ($960,000 mortgage), buyer closing costs total approximately $47,940 (4.00%). This includes $18,480 in MRT, $12,000 in Mansion Tax, $5,460 in title insurance, $2,500 attorney fee, and $9,500 in lender and escrow fees.
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