New York real estate: property tax, closing costs & insurance
New York layers a state transfer tax under a New York City mansion tax and its own city real property transfer tax, so a Manhattan condo over $1M can face several distinct, stacking taxes that a similarly priced house upstate never sees.
Property tax in New York
The effective rate runs about 1.4% of assessed value. NYC class-based; upstate full-value. Outside NYC ~1.7–2.5%.
Transfer tax & closing costs
State 0.4% (0.65% ≥$3M NYC). Buyer mansion tax 1–3.9% ≥$1M (NYC). NYC RPTT 1–1.425% seller. Recording runs a flat $250. Title insurance is customarily paid by the buyer, with a minimum owner’s premium of $500.
Insurance & capital gains
Coastal Long Island wind deductibles 2–5%. Ordinary rates; NYC adds up to 3.876%.
Worked example: a $350,000 ARV flip in New York
Six-month hold, $45,000 rehab, 15% target profit margin, all-cash. This is the same reverse waterfall the calculator runs — see it live for your actual property.
- After-repair value$350,000
- Rehab budget−$45,000
- Closing costs — acquisition−$5,875
- Closing costs — disposition−$19,800
- Holding costs, 6 months−$3,287
- Target profit, 15%−$52,500
- Maximum Allowable Offer$223,538
If you’re investing
Below $1M outside New York City the closing-cost math is fairly ordinary; above $1M inside the five boroughs, model the mansion tax bracket explicitly — it steps up in cliffs (1% to 3.9%), so a price a few thousand dollars over a bracket line costs far more in tax.
If this is your home
The mansion tax is a buyer cost, not a seller cost, in New York — factor it into your cash-to-close alongside your down payment, since it is due at closing and cannot be financed into most loan programs.
Best suited for: Investors targeting outer-borough or upstate properties under the mansion-tax thresholds where closing costs behave more predictably.
New York FAQ
What is the New York mansion tax?+
A graduated buyer-side tax that starts at 1% on residential purchases of $1 million or more in New York City and rises in steps to 3.9% above $25 million; it stacks on top of the ordinary state and city transfer taxes paid by the seller.
Who pays New York state transfer tax, buyer or seller?+
The seller customarily pays the state transfer tax (0.4%, or 0.65% in NYC on sales of $3 million or more) and the NYC Real Property Transfer Tax; the buyer separately pays the mansion tax where it applies.
See the exact number for your New York property
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Other state guides
Sources: state and county assessor publications, state department of revenue transfer-tax schedules, and title-rate manuals filed with each state’s insurance regulator, effective 2025-01-01. Figures are estimates for planning purposes, not tax or legal advice — confirm with a licensed professional before closing. How the calculator works