What Is the Transfer Tax a Seller Has to Pay When Selling a Condo in New York City This Year

Condo sellers in New York City pay two separate transfer taxes at closing: one to New York State and one to New York City. They are not the same tax, they do not have the same rate, and they are not filed on the same form. Understanding both is essential before you price your condo or negotiate a deal, because together they can represent a meaningful percentage of your gross proceeds.

New York State Real Estate Transfer Tax

New York State charges a Real Estate Transfer Tax, commonly called the NYS RETT, on every residential sale in the state. The base rate is $2 for every $500 of consideration, which works out to 0.4% of the sale price. On a condo selling for $800,000, that is $3,200 owed to the state.

There is an additional state layer for high-value sales. When a residential property sells for $3 million or more, the state adds a supplemental transfer tax of 1% on the entire amount, sometimes referred to as the "mansion tax" at the state level. This is separate from the New York City mansion tax, which is a buyer-paid charge. The seller owes the 1% supplemental state tax on deals at or above $3 million.

New York City Real Property Transfer Tax

On top of the state tax, New York City imposes its own Real Property Transfer Tax, known as the NYC RPTT. This is also a seller-paid tax in almost every standard residential transaction. The rate depends on both the property type and the sale price, and condos are classified as "residential" for purposes of this calculation.

For a detailed breakdown of both taxes, this NYC transfer tax guide from Nestapple covers the rates and how they interact, which is useful background reading before you run your own numbers.

2. How the Rates Are Calculated on a Condo Sale

The NYC RPTT has two tiers for residential sales, and the dividing line is $500,000. Condos selling below that threshold are taxed at 1% of the sale price. Condos selling at $500,000 or above are taxed at 1.425%. That 0.425 percentage point difference can add thousands of dollars to your closing costs, so the threshold matters.

The $500,000 Threshold That Changes Your Rate

Given that the median Manhattan condo sale price currently sits well above $1 million, most sellers in Manhattan, Tribeca, the Upper East Side, and the West Village will be in the 1.425% tier automatically. Sellers in outer-borough neighborhoods where condos can still trade below $500,000, including parts of Staten Island, the Bronx, and some pockets of Queens, may fall into the lower 1% tier. You can check current sale prices in your area by reviewing recent comparable sales with your agent.

It is worth noting that the $500,000 threshold is not a marginal rate. Once your sale price hits $500,000, the 1.425% rate applies to the entire purchase price, not just the amount above $500,000. A condo selling at exactly $499,999 owes $4,999.99 in NYC RPTT. A condo selling at $500,000 owes $7,125. That $2,125 jump happens in one dollar, which is worth factoring in when you are pricing your listing.

How the NYC RPTT Rate Works in Practice

Here is a clean summary of what a condo seller owes in transfer taxes in New York City this year, combining both the state and city components.

• NYS RETT (all sales): 0.4% of the sale price, paid by the seller.
• NYC RPTT (under $500,000): 1% of the sale price, paid by the seller.
• NYC RPTT ($500,000 and above): 1.425% of the entire sale price, paid by the seller.
• NYS supplemental transfer tax ($3 million and above): An additional 1% on the full sale price, paid by the seller.
• Combined rate for most Manhattan condo sales: 1.825% (0.4% state plus 1.425% city) for sales between $500,000 and $2,999,999.

3. The Additional Mansion Tax Sellers Need to Know About

The mansion tax is primarily a buyer-paid charge, but sellers need to understand it because it affects negotiating dynamics. When a condo sells for $1 million or more in New York City, the buyer owes a mansion tax ranging from 1% to 3.9% depending on the price tier. Because buyers factor this into their total cost of purchase, it influences the offers you receive and how buyers perceive your asking price relative to key thresholds.

Who Actually Pays the Mansion Tax

By default, the mansion tax is the buyer's obligation, not the seller's. However, in a soft market or a negotiated deal, sellers sometimes agree to cover or credit some portion of the buyer's mansion tax as an incentive to close. If you are selling a condo priced just above a mansion tax threshold, such as $2 million or $3 million, you may encounter buyers who ask you to contribute toward their tax burden. Whether you agree is a negotiation point, not a legal requirement.

For a full breakdown of how the mansion tax tiers work and what buyers actually owe at each price level, this article on the mansion tax threshold in New York City in 2026 walks through the numbers in detail.

Mansion Tax Rates by Price Tier in 2026

• $1,000,000 to $1,999,999: 1% of the full purchase price, paid by the buyer.
• $2,000,000 to $2,999,999: 1.25% of the full purchase price, paid by the buyer.
• $3,000,000 to $4,999,999: 1.5% of the full purchase price, paid by the buyer.
• $5,000,000 to $9,999,999: 1.25% of the full purchase price, paid by the buyer.
• $10,000,000 to $14,999,999: 3.25% of the full purchase price, paid by the buyer.
• $25,000,000 and above: 3.9% of the full purchase price, paid by the buyer.

These rates apply to the entire purchase price once the threshold is crossed, not just the amount above it. That structure creates meaningful pricing cliffs that both buyers and sellers factor into negotiations, especially in the $1 million to $2 million range where a significant portion of Manhattan and Brooklyn condo inventory currently trades.

4. What Condo Sellers Actually Pay at Closing: Real-Number Examples

Abstract percentages are easier to understand when you apply them to actual sale prices. Here are two scenarios that reflect where a significant portion of New York City condo sales currently happen, based on market data through September 2026.

Example: Selling a $1.2 Million Condo in Manhattan

A one-bedroom or two-bedroom condo in a building along the Upper West Side, Midtown South, or Williamsburg waterfront might sell in the $1.1 million to $1.4 million range right now. At a $1.2 million sale price, here is what the seller owes in transfer taxes.

• NYS RETT at 0.4%: $4,800
• NYC RPTT at 1.425%: $17,100
• Total seller transfer tax burden: $21,900, or approximately 1.825% of the sale price.
• Buyer's mansion tax (not paid by seller, shown for context): $12,000 at 1%.

That $21,900 comes directly off your net proceeds before you factor in broker commissions, attorney fees, or any outstanding mortgage balance. Sellers often underestimate how quickly these costs accumulate, which is why running a full net proceeds estimate before listing is an important step.

Example: Selling a $450,000 Condo in Brooklyn or Queens

Studio and one-bedroom condos in neighborhoods like Flatbush, Sunnyside, or Astoria can still trade in the $400,000 to $500,000 range. A $450,000 sale falls just below the $500,000 threshold, which keeps the seller in the lower NYC RPTT tier.

• NYS RETT at 0.4%: $1,800
• NYC RPTT at 1%: $4,500
• Total seller transfer tax burden: $6,300, or 1.4% of the sale price.
• No mansion tax applies: The buyer owes nothing in mansion tax since the sale price is below $1 million.

If this same condo sold for $510,000 instead, the NYC RPTT rate would jump to 1.425%, raising that tax alone to $7,267.50 and the total transfer tax bill to $9,307.50. That is $3,007.50 more in tax on just a $60,000 increase in price, which illustrates why the $500,000 boundary deserves attention when you are setting your asking price.

5. Filing, Timing, and Common Mistakes to Avoid

Transfer taxes in New York City are paid at closing, not before. They are deducted from the seller's proceeds at the closing table, so you do not write a check in advance. However, the paperwork must be filed correctly, and errors can delay or complicate the transaction.

When and How the Tax Is Filed

The NYS RETT is filed using Form TP-584, which must be submitted to the county clerk at or before closing. In New York City, the NYC RPTT is filed using Form NYC-RPT with the New York City Department of Finance. Both forms are typically prepared by the seller's real estate attorney, which is one of the reasons hiring a qualified attorney is not optional in New York City real estate transactions. Your attorney coordinates the preparation and submission of both forms, and the title company handles the actual disbursement of the tax payments at closing.

The seller's attorney also confirms that the correct consideration amount is used for calculating the tax. "Consideration" in this context means the full sale price, including any personal property included in the deal, any assumed mortgage balance, and any other value transferred. Underreporting consideration is a serious legal issue, and the Department of Finance audits transactions, particularly those near price thresholds.

Mistakes That Cost Sellers Money

The most common mistake sellers make is failing to account for transfer taxes when calculating their expected net proceeds. Many sellers focus on the gross sale price and broker commission, then are surprised by the additional $15,000 to $25,000 in transfer taxes on a typical Manhattan condo sale. Running a net proceeds estimate early, before you accept an offer, prevents that surprise.

Another mistake is pricing a condo just above the $500,000 or $3 million thresholds without factoring in the tax consequences for both sides. A condo listed at $3,050,000 triggers the additional 1% state supplemental tax on the seller and moves the buyer into a higher mansion tax tier. Pricing at $2,975,000 can produce the same or better net outcome for both parties and make the listing more competitive. These are the kinds of strategic conversations that matter when you are working with an experienced agent.

If you want to understand how transfer taxes fit into the broader picture of seller closing costs, it is also worth reading about how closing costs differ between condos and co-ops in New York City, since the tax structures apply differently to each property type.

For additional reference on how both the city and state taxes are structured, this NYC transfer tax guide from Reed Corp provides a clear overview of the rates and how they interact for residential sellers.

Understanding the current market context also helps. You can get a sense of where prices are trading right now by reviewing the average home sale price in Manhattan in September 2026, which gives useful context for how your condo's price will land relative to these tax thresholds.