The seller pays the NYS Real Estate Transfer Tax (0.4% statewide, 0.65% above $3M) and, in NYC, the city transfer tax (1% - 1.425%). The buyer pays the mansion tax (1% - 3.9% on residential purchases of $1M+) and the Peconic Bay tax (if applicable). Understanding this split is critical for accurate net proceeds modeling - seller-side taxes reduce your proceeds directly, while buyer-side taxes reduce the buyer's purchasing power and indirectly suppress what they can offer.
This article provides general educational information only. It is not legal, tax, financial, insurance, compliance, housing, brokerage, or professional advice. Rules, tax rates, obligations, enforcement practices, and market conditions vary by property, building, contract, municipality, and jurisdiction, and they change. Sellers should consult a qualified attorney, CPA, or other appropriate professional before making decisions based on their specific situation.
From the seller playbook: Transfer Tax Variations by County and Municipality in New York
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
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