.…regarding New York State Real Estate Transfer Taxes

 …regarding New York State Real Estate Transfer Taxes 

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A transfer tax is a tax on the passing of title to property from one person (or entity) to another. In a narrow legal sense, a transfer tax is essentially a transaction fee imposed on the transfer of title to property from one entity to another. This kind of tax is typically imposed where there is a legal requirement for registration of the transfer, such as transfers of real estate, shares, or bond.

The New York State Transfer Tax is calculated at the rate of $2 for every $500 of consideration, or fraction thereof, as a transfer tax paid by real estate sellers in the state of New York.  Additionally, New York State charges another New York State Transfer Tax known as ‘Mansion Tax’ on residential real estate purchasers in transactions with a consideration of $1 million or greater.

A recent tax law change guarantees two important exceptions.

1. While the New York State Transfer Tax and Mansion Tax are New York State taxes, these changes only apply to transfers in New York City or other cities  in New York State with a population of 1 million or above.  All other jurisdictions in New York remain unchanged.

2. Only transfers made after July 1, 2019 (except for those transactions which started as binding contracts of sale prior to April 1, 2019) are subject to the new tax rates.

CONSIDERATION     RESIDENTIAL     COMMERCIAL

                                                    MATTERS          MATTERS

Les than $2 million 0.4% 0.4%

$2 million - $3 million 0.4% 0.65%

Greater than $3 million 0.65% 0.65%

PS: Rates are rounded.  0.4% rate is $2 for every $500 of consideration (or fraction thereof) and the 0.65% rate is $3.25 for every $500 of consideration (or fraction thereof)

CONSIDERATION         MANSION TAX

Less than $1 million     0%

$1 million or greater, but less than $2 million 1%

$2 million or greater, but less than $3 million 1.25%

$3 million or greater, but less than $5 million 1.5%

$5 million or greater, but less than $10 million 2.25%

$10 million or greater, but less than $15 million 3.25%

$15 million or greater, but less than $20 million 3.5%

$20 million or greater, but less than $25 million 3.75%

Greater than $25 million 3.9%

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