Most states tax one thing when a house changes hands: the sale. New York taxes two — a Real Estate Transfer Tax on the price the property sold for, and a separate Mortgage Recording Tax on the loan you took out to buy it. Different taxes, different sections of the tax law, and you pay both.
At the statewide median sale price of $480,000, the state transfer tax is $2 per $500 of consideration — 0.4%, or $1,920. Put 20% down and you're financing $384,000; the basic mortgage recording tax of 0.50% on that loan is another $1,920. Same number, twice, from two unrelated taxes.
And that's the floor: the 0.50% basic tax is only the first of three state components, and New York City layers its own mortgage tax and transfer tax on top. Below is where the state-specific money goes; for the ordinary fees, see our full line-by-line breakdown of closing costs.
A note before you start: this is general education, not financial, legal, or tax advice. Every figure below is a statewide number from CalculatorByState's sourced dataset, and your county, lender, attorney, title company, and contract will all move the total. New York's mortgage recording tax is set jurisdiction by jurisdiction — the state's own MT-15 return carries the current rate table — so the only rate that matters is the one for the county you're buying in. Your Loan Estimate and Closing Disclosure are authoritative. Use this to sanity-check them, not to replace them.
1. What closing costs actually run in New York
A 2-5% range against New York's $480,000 median sale price gives you roughly $9,600 to $24,000, midpoint around $16,800. That width isn't noise — it's the gap between upstate and Brooklyn. At $350,000 the same range becomes about $7,000 to $17,500.
Closing costs are separate from your down payment, both due the same day. On a $480,000 purchase with 20% down you finance $384,000 and put down $96,000; add the $16,800 midpoint and you need roughly $112,800.
See your all-in New York closing costs2. New York taxes the sale and the loan
The Real Estate Transfer Tax taxes the deed transfer at $2 per $500 of consideration, or 0.4% of the price: $1,920 on a $480,000 sale, $1,400 on a $350,000 one. By custom, the seller pays it.
The Mortgage Recording Tax taxes the debt secured by the property, collected when the lien is recorded. It's driven by your loan amount, not the sale price, and the buyer pays it. Pay cash and you owe none of it; borrow $384,000 and the basic 0.50% component alone is $1,920.
Two things follow. A bigger down payment cuts this tax directly, shrinking the taxed amount. And it applies whenever a new lien is recorded — refinances, HELOCs, and home equity loans included. At today's 6.65% on a 30-year fixed or 5.95% on a 15-year, refinancing here carries a percentage-based government charge most states don't have.
3. The mortgage recording tax, layer by layer
The 0.50% basic tax is the statewide floor. Two more state components sit on top:
- Additional tax: 0.25% almost everywhere, rising to 0.30% inside the Metropolitan Commuter Transportation District. Mortgages on 1-2 family residential property get a $10,000 exemption from this component's base.
- Special additional tax: 0.25%, but only inside the MCTD — New York City plus Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester.
On a $384,000 loan for a 1-2 family home: outside the MCTD, the 0.50% basic tax ($1,920) plus 0.25% of $374,000 after the $10,000 exemption ($935) — about $2,855. Inside the MCTD but outside the city, that $1,920 plus 0.30% of $374,000 ($1,122) plus the special additional 0.25% of $384,000 ($960) — roughly $4,002.
So the same loan costs about $1,147 more to record in Westchester than upstate. Nothing about the house changed.
4. New York City is a different math problem entirely
If you're buying in the five boroughs, recalculate everything. On the loan side, the city imposes its own local mortgage tax on top of all three state components, pushing the total recording tax to roughly 1.8% to 2.925% depending on loan size and property type — about $6,912 at the low end on a $384,000 loan. Confirm the exact rate before you budget; the tiers aren't a rounding error.
On the sale side, the city charges its own Real Property Transfer Tax on top of the state's 0.4%: 1.0% under $500,000, 1.425% at or above. On a $480,000 city sale that's $4,800 city plus $1,920 state — $6,720 combined, customarily the seller's bill, but sellers price it in.
Finally, the mansion tax: any sale of $1 million or more anywhere in New York, not just the city, triggers a tiered tax from 1% to 3.9%, customarily the buyer's. At exactly $1 million the 1% tier is $10,000 in cash at closing, not financeable — and crossing the threshold by a dollar triggers the whole thing.
5. You will have an attorney, and it isn't optional
New York is a mandatory attorney-closing state: an attorney reviews or prepares the contract and attends the closing, and buyer and seller each normally have their own. That's how New York real estate works, not a county custom.
So your timeline runs on attorney review — the days between accepted offer and signed contract are normal, not a delay — and your fee schedule includes an attorney line you can't shop away.
Title insurance is a separate charge — see what title insurance actually covers and who it protects.
6. Who pays what, and what's actually negotiable
By custom:
- State transfer tax (0.4%): seller — $1,920 at the median.
- NYC transfer tax (1.0% or 1.425%): seller.
- Mortgage recording tax: buyer — a tax on your loan.
- Mansion tax on $1M+ sales: buyer.
- Attorney fees: each side pays its own.
Custom is a contract default, not a legal rule, and in a slow market all of it is negotiable. But notice the split: the two biggest buyer-side government charges, recording tax and mansion tax, are driven by numbers you control — your loan amount and your contract price.
Beyond the taxes the picture is ordinary: lender fees have room, third-party services you choose can be shopped, government fees and prepaids are fixed. See which fees you can push back on and which you can't.
7. How to lower the bill before you sign
- Ask your lender about a CEMA. In a consolidation, extension, and modification agreement the existing mortgage is assigned rather than discharged and re-recorded, so the recording tax applies only to new money. Not every lender cooperates, but on a refinance it's often the largest saving.
- Put more down if the cash is there. Every $10,000 less you borrow saves $50 in basic tax alone, more inside the MCTD, more still in the city.
- Watch the $1,000,000 line. A contract at $999,000 avoids the mansion tax entirely; one at $1,000,000 owes $10,000.
- Get your attorney's fee quoted in writing early. You're hiring one either way; the only variable is what you agreed to.
- Check your Loan Estimate against your Closing Disclosure. Some items may change and some may not; how to read a Loan Estimate line by line covers the tolerances.
Don't underestimate prepaids: escrow funding for property tax and insurance is real cash due at closing. See how escrow accounts get funded.
Frequently asked questions
How much are closing costs in New York?
At the statewide median of $480,000, a 2-5% range works out to about $9,600 to $24,000, midpoint near $16,800. Where you land depends on whether you're buying in New York City, elsewhere in the MCTD, or upstate.
Does New York have a mortgage recording tax?
Yes, separate from the transfer tax on the sale. The basic tax is 0.50% of the debt secured, plus 0.25% almost everywhere (0.30% in MCTD counties, with a $10,000 exemption for 1-2 family residential mortgages) and a 0.25% special additional tax inside the MCTD — roughly $2,855 on a $384,000 loan outside the MCTD, about $4,002 inside.
Why is the mortgage recording tax higher in New York City?
The city adds its own local mortgage tax on top of all three state components, pushing the combined total to roughly 1.8% to 2.925% depending on loan size and property type — about $6,912 at the low end on a $384,000 loan.
Who pays the transfer tax in New York, the buyer or the seller?
The seller customarily pays the state's 0.4% tax, plus New York City's Real Property Transfer Tax there. The buyer pays the mortgage recording tax on the loan, plus the mansion tax on sales of $1 million or more.
What is the New York mansion tax?
A tiered state tax of 1% to 3.9% on any sale of $1 million or more, anywhere in the state, customarily paid by the buyer. At $1,000,000 the 1% tier is $10,000 in cash at closing.
Do I need a lawyer to close on a house in New York?
Yes. New York is a mandatory attorney-closing state, and buyer and seller each normally have their own. Budget the fee.
Do I pay the mortgage recording tax again when I refinance?
Generally yes — the tax applies whenever a new mortgage lien is recorded. A CEMA can limit it to new money by assigning the existing mortgage instead of discharging it, if your lender will do one.
Are closing costs part of my down payment?
No, they're separate, both due at closing. On a $480,000 New York home with 20% down you finance $384,000 and bring $96,000 down plus roughly $16,800 at the midpoint — about $112,800 in cash. See also ways to reduce what you bring to closing.
What to do next
Run your actual purchase price through New York's payment calculator for an all-in monthly figure with the state's property tax and insurance averages built in. Then work backward from the cash you have — and pick your loan amount deliberately, since here it drives a tax bill, not just a payment.
- New York mortgage payment calculator
- New York affordability calculator
- New York first-time buyer calculator
- How to buy a home in New York
- First-time home buyer programs explained
Every figure here is sourced and dated — see our methodology page.
The figures above are illustrations drawn from CalculatorByState's sourced dataset — statewide figures, not county-level quotes, and New York's mortgage recording tax varies by county, loan amount, and property type. Your costs depend on your address, lender, attorney, title company, and contract. For advice specific to your situation, consult a licensed real estate professional, mortgage lender, or attorney in New York.