Friday, April 05, 2019

New NYC Transfer and Mansion Tax Rates | Summary of Transfer Tax Rates for NYC, Nassau, Suffolk, and Westchester Counties

On March 31, 2019, Governor Cuomo signed the New York State Budget for the 2020 Fiscal Year. Notable changes include increased real estate transfer tax rates and mansion taxes for properties in New York City and other cities with a population of over 1 million.

The new transfer tax and mansion tax rates apply only to property transfers in New York City (and other +1MM cities) after July 1, 2019, except for transfers with contracts signed on or before April 1, 2019 provided that the “date of execution of the contract is confirmed by independent evidence, such as the recording of the contract, payment of a deposit or other facts and circumstances determined by the commissioner of taxation and finance.” Transfer tax rates for counties outside New York counties remain the same.

Many writers have commented on these new rates causing much confusion as NYC has its own transfer tax separate and apart from NYS. The NYC transfer tax remains unchanged. However, the NYS transfer tax, as applicable to NYC (and other +1MM cities) has been increased. So, now NYC has two (2) transfer taxes, one (1) to the state and one (1) the city, that are each different from the majority of the rest of NYS.

NEW YORK CITY
New York State Residential Real Property Transfer Taxes apply to the following:
Residential Type 1: A transfer of economic interest in: a one- to three-family house;
  • an individual residential condominium unit; or
  • an individual cooperative apartment.
Residential Type 2: A grant, assignment, or surrender of, or the transfer of an economic interest in a leasehold interest in:
  • a one, two, or three family house; or
  • an individual dwelling unit in a home of more than three families living independently of each other.

NYC – Residential Real Property Transfers
Purchase Price
NYS Transfer Tax
NYC Transfer Tax
Mansion Tax Rate
Payor
Seller
Seller
Buyer
$1 - $500,000
0.40%
1%
N/A
$500,001 -  $1,000,000
0.40%
1.425%
N/A
$1,000,000 - $1,999,999
0.40%
1.425%
1.00%
$2,000,000 - $2,999,999
0.40%
1.425%
1.25%
$3,000,000 - $4,999,999
0.65%
1.425%
1.50%
$5,000,000 - $9,999,999
0.65%
1.425%
2.25%
$10,000,000 - $14,999,999
0.65%
1.425%
3.25%
$15,000,000 - $19,999,999
0.65%
1.425%
3.50%
$20,000,000 - $24,999,999
0.65%
1.425%
3.75%
$25,000,000 or more
0.65%
1.425%
3.90%

NYC – All Other Transfers (Multi-Use, Commercial, etc.)
Purchase Price
NYS Transfer Tax
NYC Transfer Tax
Mansion Tax Rate
Payor
Seller
Seller
Buyer
$1 - $500,000
0.40%
1.425%
N/A
$500,001 -  $1,000,000
0.40%
2.625%
N/A
$1,000,000 - $1,999,999
0.40%
2.625%
1.00%
$2,000,000 - $2,999,999
0.65%
2.625%
1.25%
$3,000,000 - $4,999,999
0.65%
2.625%
1.50%
$5,000,000 - $9,999,999
0.65%
2.625%
2.25%
$10,000,000 - $14,999,999
0.65%
2.625%
3.25%
$15,000,000 - $19,999,999
0.65%
2.625%
3.50%
$20,000,000 - $24,999,999
0.65%
2.625%
3.75%
$25,000,000 or more
0.65%
2.625%
3.90%

NASSAU COUNTY

Purchase Price
NYS Transfer Tax
Mansion Tax Rate
Payor
Seller
Buyer
$1 - $999,999
0.40%
N/A
$1,000,000 or more
0.40%
1%

SUFFOLK COUNTY

NYS Transfer Tax
Peconic Bay Transfer Tax*
Mansion Tax Rate
Payor
Seller
Buyer
Buyer
$1 - $999,999
0.40%
2%
N/A
$1,000,000 or more
0.40%
2%
1%

  *Applies to properties in Southold, East Hampton, Southampton, Riverhead, and Shelter Island and subject to exemptions

WESTCHESTER COUNTY

Purchase Price
NYS Transfer Tax
Yonkers Transfer Tax
Mt. Vernon Transfer Tax
Mansion Tax Rate
Payor
Seller
Seller
Seller
Buyer
$1 - $25,000
0.40%
N/A
N/A
N/A
$25,001 - $100,000
0.40%
1.5%
N/A
N/A
$100,001 - $999,999
0.40%
1.5%
1% after first $100,000
N/A
$1,000,000 or more
0.40%
1.5%
1%



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