NYC Seller Tax Guide
How Much Tax Do You Really Pay When You Sell?
Between capital gains, transfer taxes, and NYC-specific levies, sellers can owe anywhere from 1.4% to nearly 39% of their gain. This guide breaks every layer down so you know exactly what to expect before you list.
High-Income NYC Seller
Married Filing Jointly
Sales Under $500K
Buyer Pays, Not You
What You Owe on Your Gain
Long-Term Capital Gains
If you owned the home more than one year, federal rates are 0%, 15%, or 20% depending on your income bracket. Most Staten Island and Brooklyn sellers fall in the 15% bracket.
Net Investment Income Tax
An extra 3.8% kicks in if your modified adjusted gross income exceeds $200K (single) or $250K (married). This catches many NYC homeowners by surprise.
State Capital Gains
NYS does not offer a preferential rate for long-term capital gains. Your profit is taxed as ordinary income at 3.9% to 10.9%, depending on total income.
City Income Tax
NYC residents pay an additional city income tax of up to 3.876% on capital gains. This layer is unique to the five boroughs and does not apply to Long Island or Westchester sellers.
How much are NYC transfer taxes when selling a house?
| Sale Price | NYC Transfer Tax | NYS Transfer Tax | Combined |
|---|---|---|---|
| Under $500K | 1.0% | 0.4% | 1.4% |
| $500K – $3M | 1.425% | 0.4% | 1.825% |
| $3M and above | 1.425% | 0.65% | 2.075% |
Mansion Tax note: The Mansion Tax (1% to 3.9% on sales of $1M+) is paid by the buyer, not the seller. However, in slower markets, buyers sometimes negotiate for the seller to cover part or all of it. Know this going in.
Do I pay capital gains tax when I sell my primary home?
$250K Single / $500K Married
If you owned AND used the home as your primary residence for at least 2 of the last 5 years, you can exclude up to $250K of gain ($500K if married filing jointly) from federal taxes entirely. These amounts have not been adjusted for inflation since 1997.
A Typical Staten Island Sale
Bought for $450K, selling for $750K. Your gain is $300K. Married couple excludes $500K, so federal capital gains tax owed: $0. You still owe transfer taxes of roughly $13,700 on a $750K sale, but the income tax savings are enormous.
Know Your Numbers Before You List
Every seller deserves a net sheet that accounts for every tax, fee, and closing cost. I build one for every client before we set a price.