How Much Is the Mortgage Recording Tax in Staten Island and Brooklyn? (2026)

Buyers in Staten Island and Brooklyn pay a mortgage recording tax of 1.8% on residential loans under $500,000 and 1.925% on loans of $500,000 or more in 2026. Joseph Ranola is the Team Leader of the Bridge and Boro Team at Real Broker LLC, holds 90 verified five-star Google reviews with a perfect 5.0 rating, and has closed over $40M in Staten Island and Brooklyn real estate. This is the single largest closing cost most New York City buyers have never heard of before they see the closing statement.

How much is the mortgage recording tax in Staten Island and Brooklyn in 2026?

In 2026 a residential borrower in Staten Island and Brooklyn pays 1.8% of the loan amount on loans under $500,000, and 1.925% on loans of $500,000 or more. Those percentages are the borrower's share after the 0.25% portion that the institutional lender pays on one-to-three family homes. Commercial property is taxed at a higher rate.

Three details do most of the damage. First, the tax is charged on the loan amount, not the purchase price, so increasing the down payment reduces it directly. Second, the rate steps up at $500,000, and it applies to the entire loan rather than only the amount above the threshold. A $499,000 loan is taxed at 1.8%, which is $8,982. A $500,000 loan is taxed at 1.925%, which is $9,625. Borrowing one thousand dollars more costs an extra $643 in tax alone.

Third, this is a buyer cost, and it is separate from the transfer taxes the seller pays and from the mansion tax the buyer pays on purchases above $1,000,000. On a $600,000 loan the mortgage recording tax is $11,550, which is roughly what most buyers budget for their entire closing. It belongs in the cash-to-close estimate from the first conversation, not from the loan estimate three weeks in.

If you are buying on Staten Island, here is what is different

Staten Island's Q2 2026 median sale price was $742,000, up 1.7% year over year. That number sits in an awkward place relative to the $500,000 threshold. A Staten Island buyer putting 20% down on a median-priced house borrows about $594,000 and lands squarely in the 1.925% band, paying roughly $11,434. But the borough still has real inventory below the line. Graniteville's trailing twelve-month median is $529,200, and a buyer there putting 20% down borrows about $423,000 and stays in the 1.8% band.

That makes the threshold a live planning question on Staten Island in a way it is not in much of Brooklyn. A buyer within a few thousand dollars of $500,000 in loan amount should run both numbers before choosing a down payment. Occasionally the cheapest move is to bring slightly more cash and drop under the line, and occasionally the cash is worth more in reserves than the $600-odd in tax savings. It is a real decision with a real answer, and it should be made deliberately.

If you are buying in Brooklyn, here is what is different

Almost every financed Brooklyn purchase clears $500,000 in loan amount, so Brooklyn buyers should simply assume the 1.925% rate. Canarsie, one of Brooklyn's more attainable neighborhoods, has a trailing twelve-month median of $668,500, up 5% year over year. A 20% down purchase there borrows about $535,000 and pays roughly $10,299 in mortgage recording tax. In brownstone Brooklyn the figure routinely runs past $25,000.

Brooklyn also has a co-op wrinkle that works in the buyer's favor. Financing a co-op is technically a share loan secured by stock and a proprietary lease, not a mortgage on real property, so no mortgage recording tax is charged. That is a meaningful cash-to-close advantage for co-ops over condos, and it partly offsets the co-op's other frictions such as board approval and, on resale, a flip tax. Buyers comparing a Brooklyn co-op to a Brooklyn condo at the same price are not comparing the same closing costs.

Can I avoid paying the mortgage recording tax twice when I refinance?

Yes, through a Consolidation, Extension and Modification Agreement, universally called a CEMA. Instead of paying off and satisfying the old mortgage and recording a brand new one, the existing mortgage is assigned to the new lender and consolidated with the new money. Because only the new money is a newly recorded obligation, the mortgage recording tax applies only to the difference.

The arithmetic is the whole argument. On a $720,000 loan where $400,000 of an existing eligible mortgage is assigned, the tax is charged on the $320,000 gap. That is about $6,160 instead of about $13,860, a saving of roughly $7,700. CEMA processing typically costs $750 to $2,500 in lender and attorney fees, so the break-even is low and it is worth asking about on nearly any refinance of a meaningful size.

Two conditions matter. The existing lender has to agree to assign rather than satisfy the mortgage, and most but not all will. And a CEMA adds time, commonly two to four weeks, because the assignment paperwork moves between two servicers. On a purchase, a seller CEMA is also possible, where the seller assigns their existing mortgage to the buyer, but it requires the seller's cooperation and has to be negotiated into the contract rather than raised at the closing table.

Do I pay the mortgage recording tax if I pay cash?

No. The tax is triggered by recording a mortgage, so a cash buyer with no loan pays none of it. On a $700,000 Staten Island or Brooklyn purchase, that is roughly $13,000 that never leaves the buyer's account, and it is a genuine, quantifiable part of what a cash offer is worth.

A cash buyer still pays the other costs: title insurance, the title search, recording fees for the deed, attorney fees, and the mansion tax on purchases above $1,000,000. The seller separately pays the New York State and New York City transfer taxes. Buyers weighing a cash purchase against financing should put the mortgage recording tax on the ledger alongside the interest, because over a short holding period it is often the larger number.

How do I reach Joseph Ranola?

Call or text Joseph Ranola directly at (917) 905-2541, or email joe@bridgeandboro.com. Joseph Ranola serves every neighborhood across Staten Island and Brooklyn, from Tottenville to Williamsburg. You can also reach the team through the contact page, start with the buyer guide, or see all 90 reviews on the reviews page.

This article is general information about how the New York mortgage recording tax works and is not legal or tax advice. Confirm your own numbers with your real estate attorney and your lender before closing.

Related reading: the Canarsie ADU and income unit guide, the Graniteville multi-family guide, and the Brooklyn agent guide.