If you are selling in Staten Island or Brooklyn, the biggest question I hear is simple: after all the taxes and fees, what actually lands in my pocket? Here is how transfer taxes, capital gains, and the everyday closing costs work together, and how they net down to your proceeds.
When you sell in New York City, two transfer taxes usually come off the top, and in NYC the seller customarily pays both. The first is the NYC Real Property Transfer Tax, often called the RPTT. The second is the New York State transfer tax. Both are charged as a percentage of the sale price. For most Staten Island and Brooklyn homes, the combined transfer tax sits in the low single digits as a share of the price, with the RPTT stepping up at higher price bands. Rates can change and vary by property type and price, so I always have clients confirm the current figures with their attorney before closing.
If you are selling a co-op, there is one more line to watch: the flip tax. Despite the name, it is not a government tax at all. It is a transfer fee that some co-op buildings charge when a unit changes hands, and the building sets the amount in its own bylaws. Some buildings charge nothing, others charge a meaningful fee. Standalone houses and many condos are not affected, so this mainly matters for co-op owners. If you own in a co-op building, pull your governing documents early so there are no surprises at the closing table.
This is where good news usually lives for homeowners. The federal Section 121 exclusion lets you shield a large chunk of your profit if the home has been your primary residence for at least two of the last five years. The standard figures are an exclusion of up to $250,000 of gain if you file single, and up to $500,000 if you are married filing jointly. For a lot of Staten Island and Brooklyn sellers, that exclusion covers the entire gain and no federal capital gains tax is due.
Gain above the exclusion can be taxable, and it is worth knowing that high earners may also encounter the Net Investment Income Tax, or NIIT, an additional levy that can apply on top of capital gains once income crosses certain thresholds. Your gain is not simply your sale price minus what you paid; it also reflects improvements and certain costs, which is exactly why a CPA is the right person to run your specific numbers.
Once you know the taxes, the math to your take home is straightforward. You start with the sale price and subtract the pieces that come out at closing: your remaining mortgage payoff, the transfer taxes above, attorney fees for the closing, the brokerage commission, any co-op flip tax, and any capital gains tax that survives the Section 121 exclusion. What remains is your net proceeds. In practice, for a typical local sale, the mortgage payoff and commission are usually the largest lines, transfer taxes are meaningful but smaller, and capital gains is often zero thanks to the exclusion. Rather than guess with a single dollar figure, I like to model a realistic range for each seller, because two homes at similar prices can net very differently depending on the loan balance and situation.
Want to see your own numbers? Run the seller net proceeds calculator to model your take home, use the capital gains tax calculator for a home sale to test the exclusion, and check the NYC closing cost calculator for the fees on top. When you are ready, my sellers page and free resources walk through the full process, or start with what's my home worth.
A quick note: this article is general information, not legal, tax, or financial advice. Tax rates and rules can change and vary by situation, so please consult a CPA or a tax attorney before making decisions about your sale.
In New York City, the seller customarily pays both the NYC Real Property Transfer Tax (RPTT) and the New York State transfer tax. Both are calculated as a percentage of the sale price, and the combined rate typically lands in the low single digits for most Staten Island and Brooklyn homes. Rates can change and vary by price band, so confirm the current figures with your attorney at closing.
Often not. Under the federal Section 121 exclusion, if the home has been your primary residence for at least two of the last five years, you can typically exclude up to 250,000 dollars of gain if you file single and up to 500,000 dollars if you are married filing jointly. Gain above the exclusion may be taxable, and high earners could also face the Net Investment Income Tax. A CPA can confirm how it applies to you.
A flip tax is a transfer fee that some co-op buildings charge when a unit is sold. It is set by the building, not the city or state, and only applies if your co-op has one in its bylaws. Most standalone houses and many condos in Staten Island and Brooklyn are not affected, but it is worth checking your governing documents early.
Start with your sale price, then subtract your remaining mortgage payoff, transfer taxes, attorney fees, brokerage commission, any co-op flip tax, and any capital gains tax that may apply after the Section 121 exclusion. What remains is your net proceeds. Running the numbers with a calculator before you list removes most of the surprises.
Let's map out your transfer taxes, exclusion, and proceeds before you list, so the closing table holds no surprises.