What a New York Home Seller Pays at Closing
Quick answer: A New York seller usually pays the state transfer tax, the city transfer tax in the five boroughs, any mortgage payoff or liens, their own attorney and any agent’s commission, mostly from the sale proceeds. Your own attorney reviews the contract and confirms the exact figures before closing.
Before you choose how to sell, it helps to know what comes out of the sale price on the way to you. Some costs are set by law, some depend on what you owe on the property, and some depend on how you sell. Here is how each one works in New York.
The transfer taxes: state, and city in the five boroughs
New York State charges a transfer tax when real property changes hands. According to the NYS Tax Department, it is computed at two dollars for each $500 of the sale price*. The seller is the one liable for it. If the seller does not pay it or is exempt, the buyer must pay.
You may also hear about the “mansion tax.” This is a separate state tax on residential sales of $1 million or more, an extra 1% of the price*. It is paid by the buyer, not the seller.
If the property is in one of the five boroughs, the NYC Department of Finance also charges a Real Property Transfer Tax. For a one- to three-family house or an individual condominium unit, the rates are:
- 1% of the price if the price is $500,000 or less*
- 1.425% of the price if it is more than $500,000*
The city tax applies to transfers over $25,000. The return and payment are due within thirty days after the transfer, and the Department of Finance may pursue a judgment against both the seller and the buyer if it goes unpaid. Customarily, it is paid out of the seller’s proceeds at closing.
Outside the five boroughs there is no NYC tax. Some cities and towns do have their own local transfer taxes, though, so ask your attorney whether one applies where your property sits.
* Rates and thresholds are accurate as of 10/7/2026, the date this post was written. Tax rules and rates can change, so please verify current figures with the NYS Tax Department, the NYC Department of Finance or your attorney before you rely on them.
What else comes out of the proceeds
At closing, the sale money first settles what is owed against the property. Only what remains goes to you. That usually includes:
- The payoff on any mortgage
- Liens and judgments against the property
- Any unpaid property taxes or water charges
Ask your lender and your attorney for payoff figures early, so the numbers on the closing statement do not surprise you. If you already know there is a lien on the home, our guide to selling a house with liens in Queens walks through how that part of a sale is handled.
Then there is your attorney. In New York, closings are handled by attorneys, and sellers almost always hire their own real estate attorney to review the contract, gather the payoff figures and handle the closing for them. Their fee is part of what it costs you to sell.
One more item sits outside the closing itself. Income or capital gains tax on any profit from the sale depends on your own situation, so talk to a tax professional before you sign.
What an agent listing adds
When a home is listed with a real estate agent, the agent’s commission is usually paid by the seller from the sale. It comes out of the proceeds at closing along with everything above, so it belongs in your math from the start.
When you compare a listing with other ways to sell, line up the same costs on each side: transfer taxes, payoffs, attorney fees and commission. For a wider look at how these add up, read whether selling could cost you money in New York City.
If you are selling a condo
Condo sellers have one more thing to request. Ask the condo board for a statement of any unpaid common charges, since those also need to be settled from the sale. Your attorney will want that statement alongside the mortgage payoff. Our page on selling a condo for cash in New York covers the rest of the condo process.
How a Fair Offer NY offer fits
Selling to Fair Offer NY involves no agent commissions and no fees charged by us. We do not always pay a seller’s closing costs, and we do not pay any taxes owed on the sale, so the transfer taxes described above remain yours. If you are in financial hardship and need money for an attorney, we can pay your attorney fees, and that is taken into account in the overall price of our offer. Either way, your attorney’s closing statement shows what you actually keep.
You receive a written, no-obligation cash offer within 24 hours, you choose the closing date whenever you are ready, and you can review the offer with your own attorney. Here is how our cash offers for New York City houses work.
Before you decide
Whichever way you sell, the same questions apply: which transfer taxes apply to your property, what is owed against it, what your attorney charges, and whether a commission is involved. Get those answers in writing, then compare your options side by side.
Frequently asked questions
Who pays the New York State transfer tax?
The seller is liable for the New York State transfer tax, which is computed at two dollars for each $500 of the sale price*. If the seller does not pay it or is exempt, the buyer must pay.
Does the NYC transfer tax apply to my sale?
Only if the property is in one of the five boroughs. For a one- to three-family house or an individual condo unit, it is 1% of the price at $500,000 or less and 1.425% above that*, and it is usually paid out of the seller’s proceeds at closing.
Does the seller pay the mansion tax?
No. The additional state tax of 1% on residential sales of $1 million or more* is paid by the buyer.
Does Fair Offer NY pay my closing costs?
Not always. There are no agent commissions and no fees charged by us, but we do not pay any taxes owed on the sale. If you are in financial hardship and need money for an attorney, we can pay your attorney fees, and that is taken into account in the overall price of our offer.
* Accurate as of 10/7/2026; please verify current rates.
This article is general information, not legal or tax advice. Talk to a New York real estate attorney and a tax professional about your specific situation.