How do NYC and NYS transfer taxes work for Manhattan sellers?
Manhattan sellers generally pay two government transfer taxes at closing: the New York City Real Property Transfer Tax and the New York State Real Estate Transfer Tax. Buyers typically pay the separate NYS mansion tax on purchases at or above $1,000,000. All three are negotiable as to who ultimately bears them, but the statutory defaults matter because they set the starting point in every contract.
Here is how I walk every Manhattan seller through this before we even talk about list price.
The Three Buckets Every Manhattan Closing Involves
When I sit down with a seller, I separate transfer-related taxes into three distinct buckets. Combining them into one blurry number is where confusion starts.
Bucket 1: NYS Real Estate Transfer Tax (generally seller-paid)
The New York State Real Estate Transfer Tax, imposed under Tax Law Article 31, is set at 0.4% of the consideration. The statutory default is that the seller pays it, though the parties can agree otherwise in the contract. It applies to virtually every arm's-length residential sale in Manhattan.
Bucket 2: NYC Real Property Transfer Tax (generally seller-paid)
The NYC Real Property Transfer Tax, administered by the NYC Department of Finance under the Administrative Code, has a two-tier rate structure for residential property:
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1.0% when the sale price is $500,000 or less (one-, two-, or three-family homes and individual residential units)
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1.425% when the sale price exceeds $500,000 (same residential category)
For all other property types, the rates step up to 1.425% at or below $500,000 and 2.625% above $500,000. In Manhattan, most condo and co-op sales clear the $500,000 threshold, so the 1.425% residential rate is what sellers see most often. The seller is the statutory party responsible for payment, but again, the contract can shift that obligation.
The mistake I see most often is sellers treating the NYC and NYS rates as interchangeable. They are separate taxes, filed separately, and the combined effect on your closing statement is real. Your attorney will handle the filings, but you should know what you are signing.
Bucket 3: NYS Mansion Tax (generally buyer-paid)
The NYS mansion tax is a graduated additional state tax on residential transfers at or above $1,000,000. It is typically paid by the buyer not the seller. The rate schedule runs from 1% to 3.9% depending on price. In a Manhattan closing, both sides can be paying transfer-related taxes simultaneously: the seller on the NYC and NYS transfer taxes, the buyer on the mansion tax.
Because so many Manhattan sales land above $1,000,000, this is rarely an abstract concern for buyers here. If you are buying in Sutton Place, Midtown East, or the Upper East Side, budget for it before you fall in love with a unit.
Rate Summary and Key Thresholds
The table below consolidates the statutory rates. These are the government-published figures as of August 2026 from the NYC Department of Finance and the NYS Department of Taxation and Finance. Your actual obligation depends on property type, contract terms, and transaction structure, confirm every line with your attorney.
Tax Who Typically Pays Rate / Threshold Applies To NYS Real Estate Transfer Tax Seller (statutory default) 0.4% of consideration All residential and commercial conveyances NYC Real Property Transfer Tax Seller (statutory default) 1.0% (≤$500K residential) / 1.425% (>$500K residential) Individual residential units, 1-3 family homes NYC Real Property Transfer Tax Seller (statutory default) 1.425% (≤$500K other) / 2.625% (>$500K other) All other property types NYS Mansion Tax Buyer (statutory default) 1.0% to 3.9% (graduated, on purchases ≥$1,000,000) Residential transfers at or above $1M
One thing worth noting: the $500,000 NYC threshold is the same whether you are selling a condo, a co-op unit, or a townhouse. What changes the rate is the property category, not the borough or neighborhood.
Co-op Flip Taxes, Negotiation, and the Filing Timeline
Co-op flip taxes are not government taxes
In Manhattan co-op buildings, many sellers encounter a charge called a "flip tax." I want to be direct about this: a flip tax is not a city or state tax. It is a building-imposed fee governed by the co-op's proprietary lease, bylaws, and board policy. Whether the seller, buyer, or the co-op corporation absorbs it depends entirely on the building's governing documents.
The New York State Attorney General's co-op and condo guidance and the NYC Housing Preservation and Development both treat co-op flip taxes as a private contractual matter, separate from statutory transfer taxes. When I am working with a seller in a co-op building, I always pull the proprietary lease early so there are no surprises at the closing table.
Can buyer and seller negotiate who pays?
Yes. Both the NYC and NYS transfer taxes have statutory defaults (generally seller), but the parties can contractually shift payment. In a soft market or a negotiated deal, a seller might agree to cover a buyer's mansion tax, or a buyer might absorb a portion of the seller's transfer tax as a concession. These are deal-specific decisions. The important thing is that the contract spells it out clearly, because your attorney and closing officer will follow the contract, not assumptions.
This is exactly the kind of negotiation point I flag for my clients before an offer goes out. Knowing what is on the table matters.
When are these taxes due?
According to the NYC Department of Finance, the NYC transfer tax return is generally due within 15 days after the conveyance. The NYS transfer tax return is filed at recording and collected through the closing process. Manhattan closings are attorney-driven, and your real estate attorney coordinates these filings through the NYC Department of Records and Information Services (the City Register for Manhattan/New York County). You will not be chasing down forms yourself, but you should know the timeline so nothing catches you off guard.
If your transaction involves an estate sale, a trust, or a nonstandard ownership structure, the filing coordination gets more involved. For estate sales in particular, I always recommend a calm, step-by-step process rather than rushing to list, because the transfer-tax paperwork is one of several moving parts that need to be right.
If you want to understand how transfer taxes fit into the full picture of selling in Manhattan, my post on the step-by-step process for selling a Sutton Place apartment walks through the closing sequence in detail. And if you are a buyer concerned about the mansion tax in the context of a pied-à-terre purchase, my post on what Manhattan buyers should know about the NYC pied-à-terre tax covers additional tax considerations worth reviewing.
Your specific numbers depend on your property type, sale price, contract terms, and transaction structure. The only way to know exactly what you are looking at is to run it with your attorney and a local agent who knows this market.
Frequently Asked Questions
How much are NYC and NYS transfer taxes on a Manhattan condo sale?
For a Manhattan condo sale above $500,000, the NYC Real Property Transfer Tax is 1.425% of the sale price, and the NYS Real Estate Transfer Tax is 0.4%. Both are generally paid by the seller under the statutory defaults, though the contract can allocate them differently. Your attorney will calculate the exact amounts and coordinate the filings at closing.
Who pays transfer tax in Manhattan, the buyer or the seller?
The NYC and NYS real estate transfer taxes are generally paid by the seller as the statutory default. With new development, the sponsor will attempt to get the buyer to pay the transfer tax. The NYS mansion tax, which applies to purchases at or above $1,000,000, is generally paid by the buyer. Both sides can negotiate a different allocation in the purchase contract, so confirm the terms with your attorney before signing.
What is the NYC transfer tax threshold at $500,000?
The $500,000 threshold triggers a rate increase for the NYC Real Property Transfer Tax. For individual residential units, the rate rises from 1.0% (at or below $500,000) to 1.425% (above $500,000). For other property types, it rises from 1.425% to 2.625% above that same threshold. In Manhattan, most residential sales exceed $500,000, so the higher residential rate applies in the majority of transactions.
Does the New York State mansion tax apply to Manhattan co-ops and condos?
Yes. The NYS mansion tax applies to residential transfers at or above $1,000,000 regardless of whether the property is a co-op, condo, cond-op, or townhouse. The graduated rate runs from 1% to 3.9% based on the purchase price. It is a buyer-paid tax under the statutory default, though it can be negotiated in the contract.
What is a flip tax in a Manhattan co-op sale?
A flip tax is a building-imposed charge specific to co-op sales, not a government tax. It is set by the co-op's proprietary lease, bylaws, and board policy, and it can be structured as a percentage of the sale price, a per-share amount, or a flat fee. Whether the seller or buyer pays it depends entirely on the building's governing documents. The NYS Attorney General's co-op guidance treats it as a private contractual matter, separate from NYC and NYS transfer taxes. Typically the seller will pay the flip tax but in a building like Plaza 400 in Sutton Place, the buyer is required to pay the flip tax.
Transfer taxes in Manhattan are not one-size-fits-all. The rates, thresholds, and who-pays defaults interact differently depending on your property type, price point, and contract terms. Getting those details right before you list or make an offer is what separates a smooth closing from a costly surprise.
I am happy to walk you through how these taxes fit into your specific situation. Call me at (917) 719-1277 or get a home valuation to start the conversation.
About Jeff Cohen
Jeff Cohen is a licensed real estate salesperson specializing in Manhattan residential sales and purchases, with deep expertise in Sutton Place, Midtown East, the Upper East Side, Lincoln Square, and Tribeca. He guides buyers and sellers through every step of the Manhattan transaction process, from pricing and board applications to closing.
Jeff Cohen, Licensed Real Estate Salesperson · 9177191277
Equal Housing Opportunity. Jeff Cohen, Licensed Real Estate Salesperson, License #10401257834, regulated by REBNY and the NYS Department of State. This article is general information only and does not constitute legal, tax, or financial advice. Confirm your specific transfer tax obligations and closing costs with your real estate attorney, tax advisor, and/or closing officer.
