Q: Who pays the mansion tax in NYC? A: The buyer. NYC's mansion tax applies to residential purchases of $1 million or more and is tiered — 1% at $1M–$2M, rising to 3.9% at $25M+. It's one of the largest single line items on closing statements for most NYC buyers.

 

Q: Do co-op buyers pay mortgage recording tax? A: No. Co-ops are technically stock purchases, not real estate, so there's no mortgage to record. That's why co-op closing costs are typically lower than condo closing costs at the same price, even though co-ops often have flip taxes.

 

Q: What's a flip tax? A: A fee the co-op building charges when a shareholder sells. Rates range from 0% to 3%, set by each building's board. Some buildings charge it to the seller, some to the buyer, some split it. Always confirm the rate and who pays before signing a contract.

 

Q: Do I pay transfer taxes when buying? A: In a resale, no — the seller pays the NY State and NYC transfer taxes. In new development purchases, developers typically shift these to the buyer through the sponsor's contract, which can add 1.8–2.1% to your closing costs.

Q: How accurate are these estimates? A: The tax-driven line items (mansion tax, mortgage recording tax, transfer taxes) are exact — these rates are set by statute. Line items like attorney fees, move-in fees, and title insurance are industry averages and will vary ±10–20% based on your specific attorney, lender, and building. For a precise estimate tied to your actual building, use the contact form.