What Are the Transfer Taxes and Flip Taxes I Need to Budget for When Selling a Co-op in New York City

The New York City Real Property Transfer Tax (RPTT) applies to co-op sales and is paid by the seller at closing. For residential co-op transactions at or below $500,000, the rate is 1% of the gross sales price. For sales above $500,000, the rate steps up to 1.425%. These percentages apply to the full consideration paid, which for a co-op means the purchase price of the shares, not just the equity above any underlying mortgage.

In practical terms, a co-op in Jackson Heights, Queens selling for $480,000 would carry an RPTT bill of $4,800. That same unit priced at $510,000 would generate a tax of $7,267.50. That $30,000 difference in price creates more than a $2,400 jump in the tax alone, which is worth knowing when you are setting your asking price.

How the RPTT Rate Is Calculated

The RPTT is calculated on the gross consideration, which includes any cash paid plus the buyer's assumption of any underlying building mortgage allocable to those shares. Most co-op sales do not involve the buyer directly assuming a mortgage, so the gross consideration typically equals the contract price. Your real estate attorney will prepare the TP-584 and NYC RPT forms and remit the tax to the city through the title company or managing agent at closing.

The State Transfer Tax on Top of the City Tax

New York State also levies its own transfer tax, separate from the city's RPTT. The state rate is 0.4% of the gross sales price for most residential co-op transactions. For sales of $3 million or more, the state rate increases to 0.65% under the rules that took effect after the 2019 budget. So on a $1.2 million co-op in a prewar building on the Upper East Side, a seller pays 1.425% to the city ($17,100) plus 0.4% to the state ($4,800), totaling $21,900 in combined transfer taxes before any other closing costs.

For a detailed breakdown of how the 2019 state budget changed the transfer tax structure, this Forbes article on the mansion tax changes is a useful reference for understanding how the tiered rates came to be.

2. What Is the Mansion Tax and When Does It Apply to Co-ops

The mansion tax is paid by the buyer, not the seller, but it directly affects how sellers price their co-ops. It applies to any residential purchase of $1 million or more, and co-ops are fully subject to it. Because the mansion tax is the buyer's cost, a seller pricing a two-bedroom co-op in Astoria or Forest Hills at $1.05 million needs to understand that the buyer will owe an additional 1% ($10,500) on top of the purchase price. That reality shapes negotiation dynamics and can push buyers to seek a lower price to offset their tax burden.

The Tiered Mansion Tax Structure

Since 2019, the mansion tax in New York is no longer a flat 1%. It now operates on a tiered scale that increases with the purchase price. The tiers are: 1% on purchases from $1 million to $1,999,999; 1.25% on $2 million to $2,999,999; 1.5% on $3 million to $4,999,999; 2.25% on $5 million to $9,999,999; 3.25% on $10 million to $14,999,999; 3.5% on $15 million to $19,999,999; 3.75% on $20 million to $24,999,999; and 3.9% on $25 million and above. A buyer purchasing a co-op at $2.5 million pays 1.25% on the entire price, which is $31,250.

How the Mansion Tax Affects NYC Co-op Pricing Strategy

Sellers with co-ops priced just above a mansion tax threshold often find that buyers push harder on price than comparable listings below the threshold. A co-op listed at $1,020,000 carries a 1% mansion tax for the buyer ($10,200), while one priced at $999,000 carries none. That $21,000 gap in all-in cost can slow the higher-priced listing considerably. Working with an experienced agent to model these thresholds before setting your list price is one of the more practical steps a seller can take in today's market.

3. What Are Transfer Taxes and Flip Taxes You Need to Budget for When Selling a Co-op in New York City: The Flip Tax Explained

A flip tax is not a government tax at all. It is a fee charged by the co-op corporation itself when a shareholder sells their apartment. The co-op board has the authority to impose it under the proprietary lease and house rules. The money collected goes directly into the building's reserve fund, which is used for capital improvements like roof replacements, elevator upgrades, or facade work. Buildings across Manhattan, Brooklyn, and Queens use flip taxes to keep their reserves healthy without raising monthly maintenance fees for everyone.

For a thorough overview of how flip taxes work across New York City buildings, this guide on flip taxes in NYC covers the most common structures and how boards typically enforce them.

How Co-op Boards Set the Flip Tax

Each co-op building sets its own flip tax amount and structure, which is why there is no single standard rate across New York City. The flip tax is written into the proprietary lease or adopted by shareholder vote. Before you list your co-op, you need to request a copy of the proprietary lease and house rules from the managing agent and locate the exact flip tax language. The amount can vary dramatically from building to building, even within the same neighborhood.

Common Flip Tax Formulas Used in NYC Buildings

There are four main ways co-op boards calculate the flip tax, and understanding which formula your building uses is essential before you can estimate your net proceeds. The percentage-of-sale-price formula is the most common. Under this structure, the seller pays a fixed percentage of the gross sales price, typically between 1% and 3%. On a $700,000 sale, a 2% flip tax equals $14,000. The percentage-of-profit formula charges a percentage of the gain, calculated as the difference between the original purchase price and the current sale price. A building charging 20% of profit on a unit bought for $400,000 and sold for $700,000 would collect $60,000, which is a significant number that surprises many sellers.

The per-share formula charges a flat dollar amount per share owned. If a seller owns 500 shares and the building charges $50 per share, the flip tax is $25,000 regardless of the sale price. The flat-fee formula is the simplest: the building charges a fixed dollar amount, such as $5,000 or $10,000, no matter what the apartment sells for. Older co-ops in Riverdale, Rego Park, and parts of the Upper West Side often use per-share or flat-fee structures that were set decades ago and have not been updated, which can make them relatively modest in today's market.

4. Who Pays the Transfer Tax and Flip Tax in a NYC Co-op Sale

In a standard New York City co-op sale, the seller pays both the city RPTT and the state transfer tax. The flip tax is also almost always the seller's responsibility, though the proprietary lease governs who is legally obligated to pay it. The mansion tax, as noted above, falls on the buyer. Understanding this split matters because it shapes how you calculate your net proceeds and how you structure any credits or concessions during negotiation.

Negotiating Who Covers the Flip Tax

While the proprietary lease typically assigns the flip tax to the seller, some buildings allow it to be shifted to the buyer by mutual agreement between the parties. This is more common in a buyer's market, where sellers may offer to absorb more costs to close a deal. In the current September 2026 market, co-op inventory in neighborhoods like Sunnyside, Flushing, and Washington Heights has been moving at a measured pace, which means sellers who structure their net price thoughtfully, including accounting for the flip tax, tend to attract stronger offers than those who price without factoring it in.

Transfer Tax Responsibility at the Closing Table

Transfer taxes are non-negotiable in terms of who owes them to the government: the seller is legally responsible for both the city RPTT and the New York State transfer tax. However, in some transactions, particularly new development sales, the developer may agree to pay the transfer taxes on behalf of the buyer as a concession. In a resale co-op transaction, this is uncommon, but it is not unheard of in a slow market. Any agreement about who pays a transfer tax must be clearly documented in the contract of sale.

For more context on the full picture of what sellers pay at closing in New York City, including attorney fees and broker commissions alongside transfer taxes, our article on closing costs for buying a co-op apartment in New York City covers the process from both sides of the transaction.

5. How to Calculate Your Total Tax and Fee Exposure Before You List

The smartest thing a co-op seller can do before setting a list price is run a full net-proceeds calculation that includes every tax and fee. This means knowing your flip tax formula, your broker commission, your attorney fee, your move-out deposit, and both layers of transfer tax. Sellers who skip this step often discover at the closing table that their actual proceeds are $20,000 to $50,000 lower than expected, depending on the building and sale price.

Running the Numbers on a Real NYC Co-op Sale

Consider a seller in a mid-rise co-op in Kew Gardens, Queens with a sale price of $620,000 and a building flip tax of 2% of the sale price. Here is how the transfer tax and flip tax costs stack up. The NYC RPTT at 1.425% equals $8,835. The New York State transfer tax at 0.4% equals $2,480. The flip tax at 2% equals $12,400. The combined total of these three items alone is $23,715. Add a 5% to 6% broker commission ($31,000 to $37,200) and a real estate attorney fee of roughly $3,000 to $4,500, and the total seller costs approach $58,000 to $65,000 before any other adjustments.

That example illustrates why knowing what are the transfer taxes and flip taxes you need to budget for when selling a co-op in New York City is not a detail to figure out after you accept an offer. It is foundational to pricing your apartment correctly from day one. You can also check our overview of average home prices in New York City right now in September 2026 to understand where your co-op sits relative to the broader market before you commit to a number.

Other Seller Costs That Compound With Transfer and Flip Taxes

Beyond transfer taxes and the flip tax, co-op sellers in New York City typically face a handful of additional closing costs that add up quickly. Most buildings charge a move-out fee or deposit, ranging from $500 to $1,500. The managing agent typically charges a stock transfer fee of $450 to $600 and a UCC-3 filing fee of around $150 to $200. Some buildings charge a working capital contribution or a move-out escrow. If there is a flip tax, the managing agent's office also processes it and may charge an administrative fee of $250 to $500 on top of the flip tax itself.

Sellers should also account for any unpaid maintenance arrears, which must be cleared before the closing can proceed. If your building has an underlying mortgage, the managing agent will calculate your proportionate share and include it in the payoff figures. None of these items are optional, and they all come out of your proceeds at the closing table. Building a complete picture of these costs before you list is the only way to avoid surprises.

If you are still in the early stages of understanding the New York City co-op market as a potential seller or buyer, our guide to homes for sale in New York City in 2026 offers a broader look at what the market looks like right now.