Seller Closing Costs in NYC: Transfer Taxes, Flip Taxes and Fees, Line by Line

This guide walks through seller closing costs in NYC one line at a time, so you can estimate your net proceeds before you list. We cover the NYC Real Property Transfer Tax, the New York State transfer tax and its additional rate on residential sales at $3 million and up, how the mansion tax fits in (the buyer pays it), co-op flip taxes, managing agent and building fees, attorney fees, brokerage commission, paying off a mortgage or co-op loan, and a brief note on capital gains. Near the top you will find worked examples at $4 million and $10 million using the current published tax rates, and you can run your own numbers with our NYC Seller Closing Cost Calculator.

Illustrative Seller Closing Costs at $4M and $10M

The table below is illustrative. The transfer tax lines use the current rates published by the NYC Department of Finance and the New York State Department of Taxation and Finance. Items marked ASSUMPTION are placeholders we chose for the math, not quotes, and your building, lender and contract will set the real figures.

The largest certain cost for most Manhattan sellers above $3 million is the combined transfer tax, which works out to 2.075% of the price on a residential sale. Everything after that depends on the property type, the building and the deal you negotiate. For a closer estimate on your own home, our NYC Seller Closing Cost Calculator lets you plug in your price and property type.

NYC Real Property Transfer Tax

The NYC Real Property Transfer Tax, usually called the RPTT, applies to residential sales of houses with one to three dwelling units, individual condominium units and individual cooperative apartments. According to the NYC Department of Finance, the rate is 1% of the price when the value is $500,000 or less and 1.425% when the value is more than $500,000.

For the price points our clients trade at, that means the 1.425% rate is the one that matters. The Department of Finance also confirms that the RPTT applies to transfers of cooperative housing stock shares, so co-op sellers pay it just as condo and townhouse sellers do. The return and payment are due within 30 days after the transfer, and in practice your attorney handles the filing at closing.

NYC's business portal describes the tax as one you must pay when you sell or transfer real property for more than $25,000, which is why it sits on the seller's side of the closing statement in a typical resale.

New York State Transfer Tax and the $3M Additional Rate

New York State imposes its own real estate transfer tax on top of the city's. According to the NYS Department of Taxation and Finance, the base tax is $2 for each $500 of consideration, which equals 0.40%, and the base tax and additional base tax are paid by the grantor, meaning the seller, unless the contract provides otherwise.

In New York City, the state adds an additional base tax of $1.25 for each $500 of consideration, or 0.25%, on residential property when the consideration is $3 million or more. The Department's Technical Memorandum TSB-M-19(1)R states that this additional base tax is computed on the entire consideration, so a $3 million sale pays it on the full $3 million rather than only the amount above the threshold. It took effect for conveyances on or after July 1, 2019.

Together, a residential sale in the city at $3 million or more carries a 0.65% state rate. Added to the 1.425% RPTT, that is the 2.075% combined figure in our table. The state's Form TP-584-NYC instructions note that the return and taxes are due no later than the 15th day after delivery of the deed, and that a residential cooperative apartment counts as residential real property for these rules.

Where the Mansion Tax Fits

Sellers often ask whether they owe the mansion tax. They do not. The NYS Department of Taxation and Finance describes the mansion tax as a 1% tax on residences priced at $1 million or more that the buyer pays, and it separately describes a supplemental tax on New York City residential sales at $2 million or more, at incremental rates from 0.25% to 2.9%, that the buyer also pays.

It still matters to you as a seller, because buyers price their total cost of entry into their offers. For the full bracket schedule, see our guide to the NYC mansion tax, and for what your buyer will be weighing on their side of the table, see our post on reducing NYC buyer closing costs.

Co-op Flip Taxes and Building Fees

A flip tax is a transfer fee that many co-ops charge on a sale, and the proceeds go to the building. According to CooperatorNews, a flip tax is usually somewhere between 1% and 3% of the sale price, it is paid by the seller, and it can be calculated in different ways: as a percentage of the sale price, a percentage of the profit or a dollar amount per share.

Your building's offering documents and proprietary lease set the formula, so we pull those early and calculate the exact figure before pricing. The flip tax is credited to the co-op at closing, and it is one reason the same price can net a co-op seller a different amount than a condo seller.

Beyond the flip tax, Brick Underground notes that co-op sellers may pay a fee of roughly $1,500 for the managing agent and co-op attorney, and that most condo and co-op buildings charge move-out fees ranging from a few hundred to a couple of thousand dollars. Amounts vary by building, so we confirm them with the managing agent early. Co-op sales also carry a few transfer filing items. If you are weighing how these structures differ more broadly, our co-op or condo decision framework lays out the tradeoffs.

• Flip tax (co-ops, and occasionally condos): set by the building's documents

• Managing agent closing or transfer fee: set by the managing agent

• Move-out deposit and move-out fee: set by the building

• Co-op transfer filing items: handled by your attorney

Attorney Fees and Brokerage Commission

Every Manhattan seller should have their own real estate attorney to negotiate the contract, coordinate with the building and lender, and run the closing. Brick Underground suggests sellers expect to pay at least $3,000 for a basic transaction and more like $5,000 and up for luxury sales over $5 million. Fees are quoted by the attorney, so ask for an engagement letter that spells out the scope.

Brokerage commission is set in your exclusive listing agreement and is paid at closing. The rate is not fixed; it is a matter of negotiation between you and your brokerage. Because there is no single standard figure, we left commission out of the totals in our table and recommend you add the rate from your own agreement.

The value of a listing strategy shows up in the sale price and terms, which usually move the net far more than any single fee. Our off-market or public sellers playbook explains how we think about exposure and pricing for sellers at the top of the market.

Paying Off a Mortgage or Co-op Loan

If you have a loan, it is paid off from the sale proceeds at closing. Lenders may charge a fee to process the payoff, so ask for a payoff letter that lists every charge. On condos and houses, the satisfaction of mortgage is recorded with the NYC Department of Finance's Office of the City Register, which charges a recording fee.

Co-ops work differently because a co-op apartment is held as shares in a cooperative corporation rather than as real property. According to the NYC Department of Finance, a UCC financing statement shows a security interest in personal property, including in a cooperative corporation, and the Office of the City Register records these statements for co-ops. StreetEasy's property glossary defines the UCC-3 termination as the filing that gives public notice that this security interest has ended. Your attorney orders the payoff letter and makes sure the termination is filed so the buyer takes the shares free and clear.

Order your payoff letter early. Lenders can take time to produce one, and a clean payoff keeps the closing date on track.

Capital Gains and Your Next Step

Capital gains are not a closing cost, but they affect what you keep. According to the IRS, a seller who meets the ownership and use tests, generally owning the home and living in it as a residence for at least two of the five years before the sale, may exclude up to $250,000 of gain, or up to $500,000 for married couples filing jointly. Gains above that, and sales of second homes or investment property, follow different rules.

Because the details turn on your basis, improvements and filing status, we always recommend speaking with a tax advisor or CPA before you list so the numbers in your plan are your numbers.

When you are ready to see your own net sheet, start with our NYC Seller Closing Cost Calculator and then contact our team. We will walk through your building's flip tax and fees, map out pricing and timing, and build a plan to bring your home to market with confidence.

Work with Elevated

We have helped clients buy and sell residences in nearly every notable building throughout New York City, including 443 Greenwich, 70 Vestry, 56 Leonard, 111 Murray, 71 Laight, and 80 Clarkson, among many others. We are also proud to have represented the most expensive penthouse ever sold in Downtown Manhattan, a $60 million residence at 150 Charles Street. More than half of our transactions take place off-market, as many of the best opportunities never reach a public listing site. Talk to us before you bid. We can help you understand not only what to buy, but how a building actually operates, how it is perceived in the market, and what you should know before making an offer.