How Much is the NYC Transfer Tax in 2021?

How Much is the NYC Transfer Tax in 2021? Full tax rates and FAQ: https://www.hauseit.com/nyc-real-property-transfer-tax-rptt/

NYC Transfer Tax Calculator: https://www.hauseit.com/nyc-nys-transfer-tax-calculator-for-sellers/

We’ll demystify this topic in the following video. I’m Nick at Hauseit. Check out our website https://hauseit.com to learn how to save money if you’re buying or selling real estate here in New York City. So let’s get started!

You’re probably watching this video because you’ve recently discovered how absurdly high seller closing costs are in NYC. Seller closing costs range anywhere from 8% to 10% in NYC. The largest component is the traditional 6% broker fee. Transfer taxes are the second largest component of seller closing costs.

The good news is that there are two ways to significantly reduce your seller closing costs in NYC. You can save up to 6% on broker commissions through Hauseit’s Assisted FSBO Listing Service: https://www.hauseit.com/agent-assisted-fsbo/

We also offer a 1% Full-Service Listing for sellers who’d like to save money but prefer a more traditional approach to selling in NYC. Learn More: https://www.hauseit.com/agent-managed-listing/

Feel free to check out all of Hauseit’s New York City listings on StreetEasy: https://streeteasy.com/profile/924230-hauseit

To learn more and sign-up for either service, visit our website, hauseit.com, send us an email to team@hauseit.com or give us at a call at (888) 494-8258. We’ve saved New Yorkers millions on closing costs since we were founded in 2014, and we’d love to help you too.

So back to our original question: How Much is the NYC Transfer Tax in 2021?

Combined NYC and NYS Transfer Taxes for sellers in New York City is between 1.4% and 2.075% of the sale price. Both NYC and New York State charge a separate transfer tax.

The NYC Real Property Transfer Tax (acronym: RPTT) is 1% to 1.425% for most residential deals. The higher tax rate of 1.425% applies to sales above $500k.

There is also a higher rate of 2.625% for commercial properties and 4 or more family homes above $500k.

The New York State Transfer Tax is 0.4% for sales below $3 million and 0.65% for sales of $3 million or more. The higher rate of 0.65% kicks-in at a lower threshold of $2 million for commercial transactions and residential properties with 4 or more units.

For a more detailed estimate of seller Transfer Taxes in NYC, check out Hauseit’s free and interactive Transfer Tax Calculator: https://www.hauseit.com/nyc-nys-transfer-tax-calculator-for-sellers/

We also have a very detailed seller closing cost calculator which will give you insight on all of the costs you can expect to pay as a seller in NYC: https://www.hauseit.com/closing-cost-estimator-for-seller-nyc/

Before we let you go, here’s a bit more information about Transfer Taxes in NYC:

It’s customary for sellers to pay city & state transfer taxes when it comes to the sale of condos, co-ops and houses. The most common exception to this is in the case of sponsor sales. A sponsor sale refers to the first-time individual apartments are sold from the original owner or developer to individual buyers. Typically, this comes in the form of a new construction condo, or a condo conversion of an existing structure. It’s also possible to see ‘sponsor sale’ in a co-op building. This means that the co-op itself held onto the apartment since the original co-op conversion, and this is the first time it’s for sale to the general public.

Unlike for traditional private resales, the transfer tax is usually paid by buyers in the case of sponsor units. Buyers of sponsor units also customarily pay seller legal fees, among other closing costs.

However, sponsor closing costs are often negotiable depending on how motivated the developer is to sell inventory.

So what do you think about the NYC and NYS transfer taxes? Do you think these seller closing costs are reasonable, too low, or too high?

Let us know by leaving a comment below.

Thanks again for watching. I’m Nick at Hauseit, and we’ll see you on the next video.
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Hauseit LLC, Licensed Real Estate Broker
Tel: (888) 494-8258 | https://www.hauseit.com
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