NYC Seller Closing Costs & Taxes: What You'll Pay to Sell

NYC sellers should budget roughly 8% to 10% of the sale price in total when a full brokerage commission is included. The largest items are the brokerage commission, the NYC and NYS transfer taxes (together 1.4% to 2.075% of price), any co-op or condo flip tax, and your attorney's fee. Smaller items include managing agent and move-out fees, lien payoffs and filing costs. Because commissions are negotiable and flip taxes vary by building, your actual total can be meaningfully higher or lower.

In a typical NYC resale, the seller pays both the NYC Real Property Transfer Tax and the New York State transfer tax. Legally both parties are responsible, and if the tax goes unpaid, the city can pursue either one. The main exception is new development: sponsors commonly require buyers to pay transfer taxes by contract. The buyer, not the seller, pays the separate state mansion tax on homes of $1 million or more. Who pays can be negotiated in the contract, which is why your attorney should review the tax allocation before you sign.

For a one- to three-family house, condo unit or co-op apartment, the NYC Real Property Transfer Tax (RPTT) is 1% of the price if it is $500,000 or less and 1.425% if it is more than $500,000, according to the NYC Department of Finance. The rate applies to the whole price, not just the portion above $500,000. For example, a $1.5 million sale carries $21,375 in city transfer tax. The return must be filed and the tax paid within 30 days of the transfer, which your attorney handles at closing.

The New York State real estate transfer tax is 0.4% of the price ($2 per $500). In New York City, residential sales of $3 million or more carry an additional 0.25%, for a total of 0.65%, according to the NYS Department of Taxation and Finance. It applies to houses, condo units and co-op shares. Combined with the city tax, a seller typically pays 1.4% (at $500,000 or less), 1.825% (above $500,000) or 2.075% (at $3 million or more). A $1.5 million sale, for example, incurs $6,000 in state tax plus $21,375 in city tax.

No. The New York State mansion tax is paid by the buyer on residential purchases of $1 million or more. In New York City it starts at 1% and rises with price through a supplemental tax, reaching a combined 3.9% at the top bracket, according to the NYS Department of Taxation and Finance. The seller becomes liable only if the buyer does not pay or is exempt. Sellers should still understand it, because it raises a buyer's cash needs and can influence pricing just above thresholds such as $1 million or $2 million.

There is no standard or legally set commission in New York; every fee is negotiable. Historically, total commissions around 5% to 6% of the price were common in NYC, usually split between the listing and buyer's brokerages. Since the 2024 changes to industry rules, the listing broker's fee and any compensation for the buyer's agent are separate decisions. When comparing agents, look at the full picture: marketing plan, pricing advice, negotiation track record and what services are included, rather than the percentage alone. Get the agreed fee and when it is earned in writing in your listing agreement.

Not automatically. Since August 2024, the NAR settlement rules bar offers of buyer-agent compensation on MLSs and require buyers to sign written agreements with their agents. In NYC, REBNY's Residential Listing Service already changed its rules in January 2024 so that any offer of buyer-broker compensation comes from the seller, not the listing broker. Sellers may still choose to pay a buyer's agent or offer a concession, and many do to widen the buyer pool. It is a negotiable, strategic choice that you should discuss with your agent and attorney.

A flip tax is a transfer fee charged by a co-op (and occasionally a condo) when an apartment is sold. Despite the name, it is not a government tax; it goes to the building's reserves. Each building sets its own formula, commonly a percentage of the sale price, often cited as 1% to 3%, but sometimes a percentage of profit or a fee per share. The seller usually pays, though it can be negotiated. Check your proprietary lease, house rules or managing agent before pricing so the cost is built into your net proceeds.

In practice, yes. In New York City, contracts of sale are drafted and negotiated by real estate attorneys, not agents, and your attorney also holds the buyer's deposit in escrow, coordinates with the managing agent, clears liens and handles the closing and transfer tax filings. Most residential sale attorneys charge a flat fee, often in the low-to-mid thousands of dollars, with higher fees for complex deals such as estates, townhouses or contentious negotiations. Ask for the fee and what it covers in writing, and hire the attorney before you accept an offer.

Possibly, but many owners can exclude a large part of the gain. Under federal law (Section 121), if you owned and lived in the home as your main residence for at least two of the five years before the sale, you can generally exclude up to $250,000 of gain, or $500,000 for married couples filing jointly. Gain above that is taxable, and New York State and, for city residents, NYC income taxes may also apply. Selling costs and qualifying improvements reduce your gain. See IRS Publication 523 and confirm your situation with your accountant.

The Section 121 exclusion generally does not apply to a second home or investment property, so the full gain may be taxable. For a property you rented out, depreciation you claimed (or could have claimed) is generally taxed on sale as well. Investors sometimes defer gain through a Section 1031 like-kind exchange into another investment property, which has strict timing rules and requires a qualified intermediary. Mixed-use histories, such as a home you later rented, have special rules. Model the after-tax outcome with your accountant before you list, since it can affect timing and pricing.

Often less than people expect. Inherited property generally receives a stepped-up basis equal to its fair market value on the date of death, so only the increase in value after that date is taxable when you sell, according to IRS Publication 551. That makes a professional date-of-death appraisal important. The estate or heirs may also face other obligations, such as estate tax filings, and the sale still carries normal transfer taxes and closing costs. An estate attorney and accountant should confirm how basis, timing and any estate taxes apply to you.

If you are a foreign person for U.S. tax purposes, the Foreign Investment in Real Property Tax Act (FIRPTA) generally requires the buyer to withhold 15% of the sale price and send it to the IRS. Reduced rates or exemptions can apply when the buyer will live in the home and the price is $1 million or less. Because the withholding is based on price, not profit, it can far exceed your actual tax; you can apply for a lower amount with Form 8288-B or claim a refund on your U.S. return. Start early with a cross-border accountant.

Often, yes. Nonresident individuals, estates and trusts selling New York real property generally must calculate the gain and pay estimated New York income tax at closing: with Form IT-2663 when a deed is recorded (houses, condos), or Form IT-2664 for co-op shares. The payment is credited when you file your New York nonresident return, so any overpayment can be refunded. Some sales, such as those qualifying for the federal home-sale exclusion, may be exempt. Foreign sellers may also face FIRPTA withholding. Your attorney and accountant should prepare these forms well before closing.

Beyond any flip tax, buildings commonly charge sellers administrative fees: a managing agent processing or transfer fee, fees for issuing the lien search or estoppel letter, and sometimes a stock transfer or recognition-agreement fee. Many buildings also require a refundable move-out deposit to cover elevator use and potential damage, plus a certificate of insurance from your movers. Amounts vary widely by building and managing agent. Ask your managing agent for the current fee schedule and move-out rules when you list, so they are included in your net-proceeds estimate.

Because co-op owners hold shares and a proprietary lease rather than a deed, liens on them are recorded as UCC filings instead of mortgages. Before closing, a lien search checks for share loans, judgments or other claims against you and the shares. If you have a co-op loan, it must be paid off at closing and the lender's UCC-1 filing terminated (typically with a UCC-3) so the buyer receives clear shares. Unexpected judgments or old unreleased loans are a common cause of delay, so give your attorney your loan details early and resolve anything old in advance.

Start with what is negotiable: brokerage commission and services, whether and how much to offer a buyer's agent, attorney fees, and sometimes who pays a flip tax. Transfer taxes are set by law, but pricing strategy matters: a sale that closes near a tax threshold can shift the rate. Keep receipts, since selling expenses and capital improvements generally reduce your taxable gain under IRS Publication 523. Clearing liens and preparing documents early avoids costly delays. Finally, focus on net proceeds, not just fees: a stronger sale price often outweighs a small commission saving.