Selling your Sunset Park home? Transfer taxes can be the surprise line item that shrinks your net. You want a clear picture of what you will owe, who pays what, and how to handle the filings so your closing stays on track. In this guide, you will learn the NYC and New York State transfer tax rules, see real examples, and get a simple checklist to prepare for closing. Let’s dive in.
Transfer taxes that apply in Sunset Park
If your property is in Sunset Park, you are inside New York City. That means two main transfer taxes usually apply at closing unless an exemption applies.
- New York State Real Estate Transfer Tax (RETT). The base rate is 0.4% of the sale price. It applies when the consideration exceeds $500. You can review details on the state site under real estate transfer tax rules. See the NYS RETT overview.
- New York City Real Property Transfer Tax (RPTT). For residential transfers of one to three family homes, individual condo units, and individual co-op apartments, the rate is 1.00% up to $500,000 and 1.425% over $500,000. For most other property types, the rate is 1.425% up to $500,000 and 2.625% over $500,000. See NYC RPTT rates and filing.
Who normally pays?
- Seller typically pays the NYS RETT and NYC RPTT. Parties can agree otherwise in the contract.
- Buyer typically pays the NYS additional tax, often called the mansion tax, of 1% on residential sales of $1,000,000 or more. See the NYS mansion tax bulletin.
Note on very high price sales in NYC: New York State also administers additional and supplemental taxes that affect some high value conveyances. These rules are more complex and are addressed in state guidance and the TP-584-NYC instructions. Review NYS transfer tax guidance.
How much might you pay? Two quick examples
These examples use the official rates above and show typical seller transfer tax costs.
Example 1: Condo or co-op at $700,000
- NYS RETT at 0.4%: 700,000 × 0.004 = $2,800. Rate source: NYS
- NYC RPTT at 1.425%: 700,000 × 0.01425 = $9,975. Rate source: NYC
- Seller’s transfer taxes at closing: about $12,775.
- Buyer would not owe the mansion tax at this price.
Example 2: Condo at $1,200,000
- NYS RETT at 0.4%: 1,200,000 × 0.004 = $4,800. NYS
- NYC RPTT at 1.425%: 1,200,000 × 0.01425 = $17,100. NYC
- Buyer’s mansion tax at 1%: 1,200,000 × 0.01 = $12,000. NYS mansion tax
- Seller transfer taxes: about $21,900. Buyer transfer tax: about $12,000.
For very high price residential sales, state-administered supplemental taxes may also apply in NYC. These are handled under NYS guidance. Review NYS transfer tax guidance.
Forms, filings, and deadlines
Plan these steps early so your closing does not stall.
- TP-584 or TP-584-NYC. This is the New York State combined real estate transfer tax return used to calculate and remit the state RETT and certify details of the transfer. See TP-584 filing guidance.
- NYC RPTT return via ACRIS. The NYC Real Property Transfer Tax Return is prepared and filed through ACRIS or as required by the City Register for recording. See NYC RPTT filing.
- RP-5217. New York State’s Real Property Transfer Report is often required for recording to update assessment records. See RP-5217 info.
Timing and penalties
- NYC requires the RPTT return and payment within 30 days after the transfer if not handled at recording. Late filing or payment can trigger interest and penalties. See NYC rules and penalties.
Special situations Sunset Park sellers face
Co-ops and condos
Individual co-op apartment transfers are treated as residential transfers for NYC and NYS. You still complete transfer tax forms, but the documents reflect a sale of stock and a proprietary lease rather than a deed. Always confirm building requirements with the managing agent. See NYC RPTT guidance.
Multi-family, mixed-use, and commercial
Buildings with four or more units, mixed-use, and most commercial properties fall under the “all other transfers” RPTT rates, which can be as high as 2.625% over $500,000. Be sure the calculation of consideration accounts for any personal property and any mortgage amounts assumed. See NYC RPTT rates.
LLCs and controlling interests
If you transfer a controlling interest in an entity that owns NYC real property, RPTT and RETT can still apply. Expect enhanced disclosures for LLCs in many residential transfers. Get your ownership information ready early. See NYC RPTT guidance.
Mortgage recording tax context
Mortgage recording tax is separate from transfer taxes and is typically paid by the borrower when a new mortgage is recorded. It can affect negotiations and financing strategies on the buyer’s side. See NYC Comptroller context.
High-value sales in NYC
For residential sales at $1,000,000 or more, the buyer typically pays the 1% mansion tax. At higher price points, state-administered additional or supplemental taxes may apply to NYC transfers. Model these early and confirm with your attorney and title company. Review NYS transfer tax guidance.
Simple seller checklist
- Get a written estimate of your NYC RPTT and NYS RETT from your attorney or title company. NYC RPTT basics
- Confirm in the contract who pays which taxes and whether any credits will offset them. NYS RETT overview
- Provide any requested LLC member or ownership disclosures early if an entity is involved. NYC RPTT guidance
- Prepare and sign TP-584 and the NYC RPTT return, and confirm RP-5217 filing if required. TP-584 guidance
- Review your final settlement statement to verify transfer tax debits are accurate. NYC RPTT filing
Net proceeds and negotiation tips
- Price strategy. In Sunset Park, many sales land above $500,000, so the 1.425% NYC RPTT tier often applies. Model your net early so there are no surprises at the table.
- Contract allocations. While sellers usually pay RPTT and RETT, you can negotiate credits or allocations that reflect overall deal terms. Your attorney will advise based on the contract and market.
- Buyer’s closing costs. If the sale price is $1,000,000 or more, the buyer’s mansion tax and mortgage recording tax can influence timing and credits. Expect this to be part of the discussion.
Ready to sell in Sunset Park?
You deserve a smooth closing and a clear plan for transfer taxes. If you want a tailored estimate, careful prep, and a calm, on-time closing, connect with Lolita Andrade. Hablo Español.
FAQs
What transfer taxes do Sunset Park sellers pay in NYC?
- Sellers typically pay New York State RETT at 0.4% and NYC RPTT based on property type and price, while buyers usually pay the 1% mansion tax at $1,000,000 or more. See NYS and NYC.
How are NYC RPTT rates set for condos, co-ops, and houses?
- For one to three family homes, individual condos, and individual co-ops, the rate is 1.00% up to $500,000 and 1.425% over $500,000. See NYC RPTT rates.
When are transfer taxes due and how are they filed?
- Returns and payments are filed at recording or within 30 days after the transfer using the TP-584 and the NYC RPTT return via ACRIS. See NYC filing rules.
Do co-op sales avoid NYC or NYS transfer taxes?
- No. Individual co-op transfers are treated as residential transfers for both NYC and NYS, with forms tailored to stock and proprietary lease transfers. See NYC guidance.
What happens if transfer taxes are late in NYC?
- NYC can assess interest and penalties for late filing or payment, and the state can do the same. Plan filings early to avoid added costs. See NYC penalty info.
Do very high price sales have extra taxes in NYC?
- Yes. Beyond the buyer’s 1% mansion tax at $1,000,000, some NYC sales face state-administered additional or supplemental taxes at higher price points. See NYS guidance.
