NY · #4 by population

Buying a home in New York

Costs and rules that are specific to New York. Main city: New York City.

In short

New York taxes property sales through its real estate transfer tax, requires an attorney for part of the closing and requires a seller disclosure form. It forecloses through the courts and is not a community property state.

Calculate for New York

If you buy

New York state transfer tax

Real estate transfer tax (Tax Law 1402), plus mansion tax (1402-a): $2 per $500 of consideration, or fraction of $500 (0.4%), when consideration is over $500. Change the price: the amount is recalculated instantly.

Price$449,800
State transfer tax$1,800
Share of the price0.4% of the price
Who paysThe seller

Default price: the New York median value of owner-occupied homes, $449,800 (Census ACS 2024). Rule: Divide consideration by $500, round up to the next whole unit, multiply by $2. Applies when consideration is more than $500. The 1% mansion tax (buyer) on residential sales of $1,000,000 or more is separate and not included. Who pays: State base tax and additional base tax: seller (grantor), with the buyer liable if the seller fails to pay or is exempt. Mansion tax and NYC supplemental tax: buyer. NYC RPTT: the city page does not assign it to one side, so the contract controls. Not included: county and city transfer taxes, the tax on the mortgage, recording fees, title insurance and lender charges. New York transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: New York state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

New York in short

Is there a real estate transfer tax in New York?

New York State taxes every deed at $2 per $500 of price, or 0.4%, and the seller pays.

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How much is the state transfer tax on a $449,800 home in New York?

On $449,800, the median value of owner-occupied homes in New York (Census ACS 2024), the state real estate transfer tax comes to $1,800 ($2 per $500 of consideration, or fraction of $500 (0.4%), when consideration is over $500). County and city taxes are not included.

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What closing costs does New York law set?

New York has no official typical closing-cost total. On a $640,000 loan in New York City the mortgage recording tax is $13,890 (buyer about $12,290, lender $1,600), and sellers pay the 0.4% state transfer tax.

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How is property tax calculated in New York?

New York has no single property tax system: outside New York City, local assessors set values and local governments and school districts set rates, with STAR credits for primary residences, while in the city a one- to three-family home is Class 1, assessed at 6% of market value and taxed at 19.843% for tax year 2026.

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What is the deadline to appeal a property tax assessment in New York?

In New York outside New York City, file Form RP-524 with your assessor or board of assessment review by Grievance Day, usually the fourth Tuesday in May, and in New York City file with the NYC Tax Commission by March 15 for Class 1 properties (March 1 for all others).

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Do you need a real estate attorney to close in New York?

New York does not make a buyer or seller hire a lawyer, but Judiciary Law 484 bars non-lawyers from charging to prepare deeds and mortgages, and brokers may fill in only a simple contract that is subject to each party attorney approval.

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What must a home seller disclose in New York?

A New York seller of a one-to-four family home must deliver a signed Department of State Property Condition Disclosure Statement before the buyer signs a binding contract (Real Property Law 462). Since March 20, 2024, the old $500 credit that let sellers skip the form is gone.

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How does foreclosure work in New York?

New York foreclosures are judicial: for a home loan the lender must first send a notice at least 90 days before suing, and the court holds a settlement conference within 60 days after proof of service is filed.

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What first-time home buyer programs does New York offer?

In New York, SONYMA, the state mortgage agency, adds a 0% down payment loan of 3% of the price, up to $15,000, to any of its mortgages. In New York City, HPD's HomeFirst program lends up to $100,000 to first-time buyers earning up to 120% of area median income.

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How much tax when you sell a home in New York?

The federal rule is the same in New York as in every state: if you owned and lived in the home as your main home for at least 2 of the last 5 years, the first $250,000 of gain is excluded, $500,000 for a married couple filing jointly (Section 121, IRS Publication 523). Bought $400,000, sold $750,000: a single owner has $100,000 of taxable gain, $15,000 of federal tax at the 15% long-term rate; a couple filing jointly owes nothing. New York income tax on the gain is not computed here.

Capital gains on a home sale

New York guides

New York City

Buying a home in New York City, New York

Professionals in New York

Other key facts

  • Rent-stabilized leases: 0% for one- and two-year leases starting October 1, 2026 to September 30, 2027 (Rent Guidelines Board Order #58). Details

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