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.
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;
SUFFOLK COUNTY
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.
- 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
|
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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%
|
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%
|
