Real estate transfer tax
Important Notice to Home Buyers
If you are buying residential property and you plan to make it your primary residence, you may be entitled to school tax relief through the New York State STAR credit. To receive this credit, you must register with the Tax Department after you have taken title to the property. For more information, see Register for the STAR credit. Do not file an application for the STAR exemption with your assessor, since new STAR exemptions will no longer be granted. School tax relief is now provided to new applicants through the STAR credit.
New York State imposes a real estate transfer tax on conveyances of real property or interests therein when the consideration exceeds $500.
Tax is computed at a rate of two dollars for each $500, or fractional part thereof, of consideration.
An additional real estate transfer tax (sometimes referred to as the "mansion tax") of 1% of the sale price applies to residences where consideration is $1 million or more.
Who pays the tax
The tax is paid by the grantor (seller). However, if the grantor doesn't pay the tax, or is exempt from the tax, the grantee (buyer) must pay the tax.
The additional 1% real estate transfer tax is paid by the grantee. If the grantee is exempt, the grantor must pay the tax.
File and pay tax
- File Form TP-584, Combined Real Estate Transfer Tax Return, Credit Line Mortgage Certificate, and Certification of Exemption from the Payment of Estimated Personal Income Tax, with the county clerk where the real property being transferred is located. The form is due no later than the 15th day after the delivery of the deed or similar legal document.
- If the deed or document isn't being recorded, file Form TP-584 and pay any tax due directly to the Tax Department no later than the 15th day after the delivery of documents. Mail Form TP-584, any attachments and payment to the address indicated on the form. If using a private delivery service, refer to Publication 55, Designated Private Delivery Service.
Nonresident filing requirements
Nonresidents must compute the gain (or loss) and pay any estimated personal income tax due from the sale or transfer of certain real property, including cooperative units. Nonresidents who don't qualify under one of the exemptions shown on Form TP-584, Schedule D must present one of the following forms to the recording officer or directly to the Tax Department at the same time Form TP 584 is filed:
- IT-2663, Nonresident Real Property Estimated Income Tax Payment Form
IT-2664, Nonresident Cooperative Unit Estimated Income Tax Payment Form
For more information
- Real estate transfer tax forms and instructions
- Real estate transfer tax advisory opinions
- Real estate transfer tax bulletins
- Real estate transfer tax publications and tax bulletins
- Real estate transfer tax TSB-Ms