How much are closing costs for buyers in NYC?

Buyer closing costs in NYC typically range from 1.5% to 6% of the purchase price. On a $1 million apartment, that means $15,000 to $60,000 on top of your down payment. The exact amount depends on whether you are buying a condo, co-op, or house, and whether you are financing or paying cash.

What is the Mansion Tax in NYC?

The Mansion Tax is a buyer-paid tax on any NYC purchase of $1 million or more. It starts at 1% for properties between $1M and $2M and increases on a graduated scale up to 3.9% for purchases of $25 million or more.

What is the Mortgage Recording Tax in NYC?

The Mortgage Recording Tax is 1.8% of the loan amount for mortgages under $500,000, and 1.925% for mortgages of $500,000 or more. This tax only applies to condos and houses — co-op buyers do not pay it because co-op purchases involve buying shares rather than real property.

Are closing costs lower for co-ops than condos in NYC?

Yes. Co-op buyers save significantly because they do not pay the Mortgage Recording Tax or title insurance. On a $1.5 million purchase, a co-op buyer can save approximately $26,000 in closing costs compared to a condo buyer.

NYC Buyer Closing Cost Breakdown Guide

Your complete guide to every closing cost New York City buyers face in 2026 — line by line, with real examples for condos, co-ops, and houses.

Buying a home in New York City means budgeting for more than just the down payment. Closing costs in NYC typically range from 1.5% to 6% of the purchase price, and they catch many first-time buyers off guard. This free guide breaks down every fee so you can plan with confidence.

What Are Closing Costs in NYC?

Closing costs are the fees and taxes you pay on top of your down payment when you finalize a real estate purchase. In New York City, these costs are higher than most markets because of city-specific taxes like the Mansion Tax and Mortgage Recording Tax.

Mansion Tax Brackets (Paid by Buyer)

Any NYC purchase of $1 million or more triggers the Mansion Tax:

$1M–$2M: 1.0%
$2M–$3M: 1.25%
$3M–$5M: 1.50%
$5M–$10M: 2.25%
$10M–$15M: 3.25%
$15M–$20M: 3.50%
$20M–$25M: 3.75%
$25M+: 3.90%

Example: On a $1.5M condo, the Mansion Tax is $15,000. On a $2.5M condo, it’s $31,250.

Mortgage Recording Tax (Condo and House Buyers)

This tax applies when you record a mortgage against real property in New York:

Loans under $500,000: 1.80% of the loan amount
Loans of $500,000 or more: 1.925% of the loan amount

Co-op buyers do not pay the Mortgage Recording Tax because co-op purchases involve buying shares in a corporation, not real property.

Example: On an $800,000 mortgage (80% of a $1M condo), the Mortgage Recording Tax is approximately $15,400.

Title Insurance (Condo and House Buyers)

Title insurance protects you and your lender against any defects in the property’s title. Two policies are typically purchased:

Lender’s policy: Required by your bank
Owner’s policy: Protects your ownership interest

Together, these typically cost $2,000–$3,500 on a $500,000 property and scale up with purchase price. Co-op buyers do not need title insurance.

Real Estate Attorney Fees

In New York, both buyer and seller must have their own attorney. Your real estate attorney reviews the contract, handles the title search, and represents you at closing. Expect to pay $2,000–$4,000 depending on the complexity of your deal.

Building and Lender Fees

Move-in deposit and fee: Varies by building ($500–$1,500+)
Co-op application and credit check fees: A few hundred dollars each
Bank application fee, appraisal fee ($500–$1,500), and bank attorney fees
Recording fees: City charges to record the deed and mortgage
Working capital fund contribution (condos): Typically 1–2 months of common charges

Real Closing Cost Examples

Example 1: $800,000 Brooklyn Condo (20% Down)

Mortgage: $640,000
Attorney fees: ~$3,000
Title insurance: ~$2,500
Mortgage Recording Tax (1.8%): ~$11,520
Mansion Tax: $0 (under $1M)
Bank fees + misc: ~$2,500
Total closing costs: ~$19,520 (2.4% of purchase price)

Example 2: $1.5M Condo (20% Down)

Mortgage: $1,200,000
Attorney fees: ~$3,500
Title insurance: ~$3,000
Mortgage Recording Tax (1.925%): ~$23,100
Mansion Tax (1%): $15,000
Bank fees + misc: ~$3,000
Total closing costs: ~$47,600 (3.2% of purchase price)

Example 3: $1.5M Co-op (20% Down)

Mortgage: $1,200,000
Attorney fees: ~$3,500
Title insurance: $0 (not needed for co-ops)
Mortgage Recording Tax: $0 (not applicable to co-ops)
Mansion Tax (1%): $15,000
Bank fees + misc: ~$3,000
Total closing costs: ~$21,500 (1.4% of purchase price)

Condo vs. Co-op Closing Cost Comparison

Co-op buyers save significantly on closing costs because they avoid the Mortgage Recording Tax and title insurance. On a $1.5M purchase, a co-op buyer saves approximately $26,000 compared to a condo buyer.

How to Prepare for Closing Costs

Get a full closing cost estimate early — your agent and attorney should provide this based on the property type, price, and financing
Budget closing costs separately from your down payment — do not stretch your down payment at the expense of closing funds
Ask your lender about negotiable fees — some bank fees can be reduced, and sellers may contribute toward closing costs in slower markets

Talk to Joseph Ranola About Your Closing Costs

Every deal is different. The exact closing costs you’ll pay depend on whether you’re buying a condo, co-op, or house, your purchase price, your loan amount, and your building’s specific fees.

Book a Free Consultation and I’ll walk you through the exact numbers for any property you’re considering.

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Joseph Ranola | Bridge and Boro Team at Real Broker