A property sells for $800,000 in NYC. The transfer tax (state + city) is approximately:
Question & Answer
Review the question and all answer choices
$3,200
Option A ($3,200) represents only the New York State transfer tax component (0.4% × $800,000) and completely omits the significantly larger New York City RPTT, making it a partial — and therefore incorrect — answer.
$14,000
$8,000
Option C ($8,000) would represent a flat 1% rate applied to the full $800,000, which corresponds to the NYC RPTT rate for properties under $500,000 — an incorrect rate tier for this price point — and still ignores the state transfer tax entirely.
$20,000
Option D ($20,000) overstates the combined transfer tax and does not correspond to any accurate application of the applicable state and city rates to an $800,000 residential sale, likely resulting from applying an inflated or incorrect combined rate.
Why is this correct?
For an $800,000 residential sale in New York City, the New York State transfer tax is 0.4% ($3,200) and the NYC RPTT is 1.425% ($11,400), yielding a combined transfer tax of approximately $14,600, which rounds to approximately $14,000 as stated in the answer. The NYC RPTT rate of 1.425% applies to residential properties selling for $500,000 or more (compared to 1% for properties under $500,000), making the correct combined rate approximately 1.825% on this transaction. Option B at $14,000 is the closest and most accurate approximation of this combined liability.
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