The New York City real property transfer tax is one of the largest closing costs for home sellers in New York City. The transfer tax is levied on the transfer of all real property n New York City valued above $25,000. It’s the second largest closing cost for sellers in New York City after the typical 6% real estate commission bill. How much is the New York City real estate transfer tax? or a typical 1 to 3 family home, condo, or co-op apartment – the New York City real estate transfer tax is between 1 to 1.425%. If the value is $500,000 or less, the New York City transfer tax is 1% of the sale price. if the value is more than 500,000, the New York City real estate transfer tax is 1.425%. For other types of real estate transfers, the New York City transfer tax ranges between one 1.425% to 2.625%. If the value is 500,000 or less, the New York City transfer tax is 1.425% of the sale price. If the value is more than 500,000, the New York City transfer tax is 2.625%. It’s important to note that the New York City transfer tax is a separate closing cost from the 0.4% transfer tax imposed by New York State. Who pays the real property transfer tax in New York City? For traditional private sale of real estate in New York City, the real property tax is typically paid by the seller. in the case of new construction or any other type of sponsor sale, the buyer typically pays both in New York City and New York State transfer taxes as well as the seller’s legal fees. How can I reduce my closing cost as a seller in New York City? Although, it’s not possible to avoid paying in New York City
and New York State transfer taxes, you can reduce or fully eliminate the largest seller closing cost, which is a traditional 6% real estate commission bill. You can save up to 6% in broker commissions by listing for sale by owner through Hauseit agent assisted flat fee RLS listing service. Don’t have time to sell for sale by owner in New York City? Save thousands in commissions by listening with the full-service REBNY member listing agent through Hauseit for just 1% Commission. Visit www.hauseit.com to learn about our reduced commission options for New York City home sellers.