New york state transfer tax

The New York State transfer tax is a tax imposed on the transfer of real property, such as a house or apartment, from one person to another. The tax is typically paid by the buyer, but in some cases, the seller may be responsible for paying the tax.

Here are some key facts about the New York State transfer tax:

  1. Rate: The transfer tax rate in New York State is 0.4% of the sale price of the property, with a minimum tax of $175 and a maximum tax of $15,000.
  2. Who pays: The buyer typically pays the transfer tax, but in some cases, the seller may be responsible for paying the tax. For example, if the seller is a corporation or a limited liability company (LLC), the seller may be required to pay the tax.
  3. Exemptions: There are some exemptions from the transfer tax, including:
    • Transfers between spouses or domestic partners
    • Transfers between parents and children
    • Transfers between siblings
    • Transfers between grandparents and grandchildren
    • Transfers between great-grandparents and great-grandchildren
    • Transfers between trusts
    • Transfers of property used for charitable purposes
  4. How to pay: The transfer tax is typically paid at the time of closing, when the property is transferred from the seller to the buyer. The buyer's attorney or title company will typically collect the tax and remit it to the New York State Department of Taxation and Finance.
  5. Recording fees: In addition to the transfer tax, there may be additional recording fees associated with transferring the property. These fees are typically paid by the buyer and can range from $100 to $500, depending on the county where the property is located.
  6. New York City transfer tax: New York City also imposes a transfer tax, which is in addition to the state transfer tax. The New York City transfer tax rate is 0.4% of the sale price of the property, with a minimum tax of $100 and a maximum tax of $15,000.

It's worth noting that the transfer tax is just one of the many costs associated with buying or selling a property in New York State. Other costs may include closing costs, attorney fees, and title insurance premiums.