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 tax of 1% of the sale price ("mansion tax") applies to residences where consideration is $1 million or more.
Beginning on July 1, 2019, certain conveyances of real property or interests therein, located in New York City (other than a conveyance made pursuant to a binding written contract entered into on or before April 1, 2019) are also subject to the following taxes:
- A tax of $1.25 for each $500, or fractional part thereof, when the consideration for the entire conveyance of residential real property is $3 million or more (“additional base tax”).
- An additional base tax of $1.25 for each $500, or fractional part thereof, when the consideration for the entire conveyance of property other than residential real property is $2 million or more.
- A supplemental tax on the conveyance of residential real property, or interest therein, where the consideration is $2 million or more. The tax rate is an incremental rate between .25% and 2.9% based on the purchase price. The rates are published in Form TP-584-NYC-I, Instructions for Form TP-584-NYC.
Who pays the tax
The base tax and additional base tax are paid by the seller (grantor). However, if the seller doesn't pay the tax, or is exempt from the tax, the buyer (grantee) must pay the tax.
The mansion tax and supplemental tax are paid by the buyer. If the buyer doesn’t pay the tax or is exempt, the seller 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 and payment, of all applicable taxes, are due no later than the 15th day after the delivery of the deed or similar legal document.
- New Form TP-584-NYC, Combined Real Estate Transfer Tax Return, Credit Line Mortgage Certificate, and Certification of Exemption from the Payment of Estimated Personal Income Tax for the Conveyance of Real Property Located in New York City, must be filed to report all real property conveyances in New York City.
- If the deed or document isn't being recorded, file Form TP-584 or TP-584-NYC 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 or TP-584-NYC, 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 or TP-584-NYC, 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 or TP-584-NYC 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