How much are closing costs in NYC?

Buyers often see closing costs land in the range of 2 to 4% of the purchase price, climbing higher when the mansion tax and mortgage recording tax both apply. Sellers, between the state and city transfer taxes and other costs, frequently face a similar or larger bite once commission is included.

What is the mortgage recording tax in NYC?

It is a tax the borrower pays when a mortgage is recorded on a house or condo. In New York City the effective rate is roughly 1.8% on loans under 500,000 and about 1.925% on loans of 500,000 or more. It does not apply to a co op.

Who pays the mansion tax, the buyer or the seller?

The buyer pays the mansion tax. It applies to residential purchases of 1,000,000 or more, starts at 1% of the entire price, and rises in tiers above that. Rates and thresholds can change, so confirm current figures with your attorney.

What are the transfer taxes when selling in NYC?

Sellers pay the New York State transfer tax, generally 0.4% of the price, plus the New York City transfer tax, which is 1% at or under 500,000 and 1.425% above it. Combined that is roughly 1.8% of the sale price.

What is a co op flip tax?

A flip tax is a fee the co op building itself charges the seller when you sell your shares. It is set by the building and varies widely, sometimes a percentage of the price, sometimes a flat amount, so check your building's rule before you price your unit.

Bridge and Boro · Real Broker

What Will I Pay in Closing Costs in NYC? (Buyer and Seller)

Updated September 2026

The offer price is not the whole price. Here is the honest, both sides breakdown of what buyers and sellers really pay at a New York City closing, so nobody gets blindsided.

New York is an attorney state

A lawyer is on every deal here, on both the buyer side and the seller side, drafting the contract, handling title, and sitting at closing. For a normal residential deal each side generally pays their own attorney somewhere around 2,000 to 4,000.

Buyer cost: the mortgage recording tax

If you finance a house or a condo, New York taxes the recording of your mortgage. In New York City that effective rate is roughly 1.8% on loans under 500,000 and about 1.925% on loans of 500,000 or more, so on a 500,000 loan that is close to 10,000. It does not apply to a co op, because there is no mortgage recorded.

Buyer cost: the mansion tax

The mansion tax is a state tax the buyer pays on any home of 1,000,000 or more, starting at 1% of the entire price and rising in tiers above that. Crossing the 1,000,000 line by one dollar adds at least 10,000, so budget for it if you are anywhere near that number.

Buyer cost: title, lender fees, and prepaids

Buyers also pay for title insurance and the title search, lender origination fees and any points, and prepaid property taxes and homeowners insurance collected into escrow. On a condo or co op, add building application and move in fees.

Seller cost: the two transfer taxes

Sellers pay the New York State transfer tax, generally 0.4% of the price, plus the New York City transfer tax, or RPTT, which is 1% at or under 500,000 and 1.425% above it. Together that is roughly 1.8% of the sale price off the top, so on a 700,000 sale that is well over 12,000.

Seller cost: flip tax, payoff, and liens

If you sell a co op, many buildings charge a flip tax set by the building. You also have your mortgage payoff and must clear any open liens or violations for clean title. A real estate commission is a negotiable seller side cost as well.

Want your real closing costs estimated before you buy or sell?

Tell me your budget and what you are after, and I will give you the honest read on neighborhoods, numbers, and next steps. Call or text 917-905-2541.