Closing costs by state
Closing costs in New York
Closing costs in New York run about 2% to 5% of the price for a buyer, made of lender fees, title and settlement, recording, prepaid interest and escrow reserves; on a $400,000 home the worked example below comes to $11,555. New York charges a state transfer tax of $2 per $500 of consideration (state real estate transfer tax, Tax Law § 1402), plus a 1% mansion tax paid by the buyer on residences of $1,000,000 or more, about 0.4% of the price, and the seller customarily pays it. New York City adds its own transfer tax of 1% on residential sales of $500,000 or less and 1.425% above, paid by the seller, plus supplemental state taxes on sales of $2 million and up. Yonkers, Mount Vernon and the Peconic Bay towns levy their own.
Last verified ·Sources:tax.ny.gov·nyc.gov
The rules
What New York does differently
- State transfer tax
- $2 per $500 of consideration (state real estate transfer tax, Tax Law § 1402), plus a 1% mansion tax paid by the buyer on residences of $1,000,000 or more (about 0.4% of the price at $400,000).
- Who pays it
- Seller, by custom.
- County and city add-ons
- New York City adds its own transfer tax of 1% on residential sales of $500,000 or less and 1.425% above, paid by the seller, plus supplemental state taxes on sales of $2 million and up. Yonkers, Mount Vernon and the Peconic Bay towns levy their own.
- Attorney at closing
- In New York closings are customarily handled by an attorney rather than a title or escrow company, so budget an attorney fee.
- Owner’s title policy
- The buyer customarily pays for the owner’s title insurance policy in New York, along with the lender’s policy.
- Notes
- The statute puts the base tax on the grantor; the buyer becomes liable if the seller fails to pay. $1,600 on a $400,000 sale outside the city; $5,600 more inside New York City. Attorneys close nearly every New York sale, for both sides, though no statute requires it.
- tax.ny.gov — “Tax is computed at a rate of two dollars for each $500, or fractional part thereof, of consideration.”
- nyc.gov — “If the value is $500,000 or less, the rate is 1% of the price. If the value is more than $500,000 the rate is 1.425%.”
Worked example
A $400,000 home in New York, 20% down
Loan of $320,000 at 6.5%, closing on the 15th. Lender, title and recording figures are typical line items used for illustration, the same on every state page; the transfer tax and the owner’s policy side follow New York’s rules above. Not a quote: the calculator takes your own figures.
Buyer pays
| Loan origination, 1% of the loan | $3,200 |
| Appraisal | $550 |
| Title and settlement services | $1,800 |
| Lender’s title policy | $900 |
| Recording | $150 |
| Prepaid interest, 15 days at 6.5% | $855 |
| Escrow reserve, 3 months of tax at 1.1% | $1,100 |
| First year of homeowners insurance | $1,500 |
| Owner’s title policy (estimate) | $1,500 |
| Total (2.889% of price) | $11,555 |
Seller pays
| Commission, 5% | $20,000 |
| Title and escrow fees | $2,000 |
| Prorated property tax | $1,500 |
| Transfer tax, seller’s share (0.4%) | $1,600 |
| Total | $25,100 |
Questions
What people ask about New York
- Who pays the transfer tax in New York?
- New York charges a state transfer tax of $2 per $500 of consideration (state real estate transfer tax, Tax Law § 1402), plus a 1% mansion tax paid by the buyer on residences of $1,000,000 or more, about 0.4% of the price, and the seller customarily pays it. New York City adds its own transfer tax of 1% on residential sales of $500,000 or less and 1.425% above, paid by the seller, plus supplemental state taxes on sales of $2 million and up. Yonkers, Mount Vernon and the Peconic Bay towns levy their own.
- Do you need an attorney to close on a house in New York?
- In New York closings are customarily handled by an attorney rather than a title or escrow company, so budget an attorney fee.
- Who pays for the owner’s title policy in New York?
- The buyer customarily pays for the owner’s title insurance policy in New York, along with the lender’s policy.
- How much are seller closing costs in New York?
- On a $400,000 sale with a 5% commission, the worked example on this page comes to $25,100 for the seller, including $1,600 of transfer tax, before the mortgage payoff and any concessions or repairs. The seller net sheet calculator shows the walk-away figure.
Last reviewed September 8, 2026 by the EstatePass editorial team. Formulas and program limits are checked against the published rules; figures on this page are arithmetic, not market statistics.
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