A Guide to Transfer & Mortgage Taxes

A Guide to Transfer & Mortgage Taxes:

Real Estate Taxes in New York State are complex. The chart below contains the tax amounts–residential and commercial–for Transfer Taxes and the Mortgage recording tax, including any local differences by county.

NEW YORK STATE TRANSFER TAX – ALL COUNTIES (Usually paid by the Seller):

$4.00 per $1,000.00 of Consideration (or $2.00 per $500.00 of Consideration)

REAL PROPERTY TRANSFER TAX (NYC) – (Usually paid by the seller):

1 – 3 Family Home, Co-op or Condominium:

$500,000.00 or less                                         1.00% of Consideration

Over $500,000.00                                            1.425% of Consideration

All other Properties (4 – 6 Family, multi-residential, commercial and vacant lot):

$500,000.00 or less                                         1.425% of Consideration

Over $500,000.00                                           2.625% of Consideration

 RPT – Yonkers:

Tax Rate is 1.50% of total consideration and the tax is payable by the seller.

 RPT – Mount Vernon:

Tax Rate is 1% of consideration in excess of $100,000.00 and the tax is payable by the seller.

RPT – Suffolk County:

Southold, East Hampton, South Hampton, Riverhead, and Shelter Island phased in local transfer taxes effective March 1st, 1999. Generally, 2% payable by the buyer, but there is a different deductible for improved and unimproved, and it varies for each town.

MANSION TAX – All Counties (Usually paid by the Purchaser)::

Tax rate is 1% of total consideration and is effective for all 1- 2 family properties where consideration is $1,000,000.00 or more.

MORTGAGE TAX – NYC:

1 – 3 Family dwellings where the consideration is:

$499,999.99 or less                              Rate is 2.05%

If Bank gives Affidavit (253) to exempt them from .25% tax, then homeowner only pays 1.80%, instead of the 2.05% Rate

$500,000.00 or more                           Rate is 2.175%

NYC – If consideration is below $10,000 – Rate is 1.75% (1 or 2 Family) (With no $30.00 deduction)

All other properties:

$499,999.99 or less                              Rate is 2.05%

$500,000.00 or more                          Rate is 2.80%

Please note that on 1 to 6 family dwellings, the lender contributes 0.25% to the above tax.

One or Two Family Dwellings benefit from a deduction of 0.30% of first $10,000.00 of the mortgage ($30.00).

MORTGAGE TAX – OUTSIDE NYC:

Dutchess 1.05%                                   Suffolk 1.05%

Nassau 1.05%                                      Sullivan 1.00%

Orange 1.05%                                      Ulster 0.75%

Putnam 1.05%                                     Westchester 1.30%

Rockland 1.30%                                  Yonkers 1.80%

 

Please note that with one to six family dwellings, the lender contributes 0.25% of the above tax unless otherwise exempt. Borrower may be responsible for the entire mortgage tax.

One or two family dwellings benefit from deduction of 0.30% of first $10,000.00 of the mortgage ($30.00) for those counties served by the MTA (Bronx, Dutchess, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, Westchester (including Yonkers)).

 

Who am I?
I am a Real Estate Transaction Attorney.  My sole practice area is real estate purchases and sales for residential and commercial properties. I have successfully closed over 5000 transactions.  I also represent local and national lenders in New York City and Long Island. My practice primarily serves the following communities in Queens, Bronx, Brooklyn, New York City and Long Island (Nassau and Suffolk):  Bangladesh, Pakistani, Indian, Arab.  My staff speaks Bengali, Urdu, and Hindi.  We understand these communities and are sensitive to their cultural and religious diversity, in particular the Islamic/Muslim faith.

By |2018-09-01T19:11:02+00:00August 20th, 2018|Blog|Comments Off on A Guide to Transfer & Mortgage Taxes