The complete guide to NYC closing costs.

Closing costs in New York City are some of the highest in the country. For buyers, expect 2% to 6% of the purchase price on top of the down payment — sometimes more on new construction or co-ops. For sellers, expect 8% to 10% of the sale price, mostly going to broker commissions and transfer taxes. On a $1.5 million transaction, that's between $30,000 and $90,000 for the buyer and $120,000 to $150,000 for the seller.

This guide explains every cost line by line: what it is, who pays it, how it's calculated, and how to estimate it for your specific transaction. Numbers reflect current 2026 rates.

Buyer closing costs at a glance

If you're buying a residential property in NYC, your closing costs typically fall into five categories. Here's what most buyers pay on a $1.5 million condo purchase with 20% down ($1.2 million loan):

Total: roughly $46,000 to $50,000 on a $1.5M condo with financing. That's about 3.1% of purchase price. Buyers paying cash skip the mortgage recording tax entirely, which knocks about $20,000 off the bill.

Each line item has its own rules. The largest costs — mansion tax, mortgage recording tax, and title insurance — are explained in detail below.

Mansion tax (the big one)

The mansion tax is a progressive tax on residential purchases of $1 million or more. It's paid by the buyer at closing. The tax was revised in 2019 from a flat 1% to a tiered structure that scales with purchase price.

2026 mansion tax rates

Who pays it, when

The mansion tax is paid by the buyer at closing, typically by certified check or wire transfer to New York State alongside the rest of the closing funds. Your attorney handles the paperwork (Form TP-584 if you're curious).

It applies to all residential purchases — co-ops, condos, single-family homes, and multi-family up to three units. Commercial properties have a separate tax structure that we won't get into here.

Mortgage recording tax

If you're financing your purchase, the mortgage recording tax is one of the largest closing costs. It's a tax on the mortgage itself — calculated on the loan amount, not the purchase price.

How it's calculated

The combined NYC + NYS mortgage recording tax is:

• 1.8% on mortgages under $500,000
• 1.925% on mortgages of $500,000 or more

The lender contributes 0.25% of the tax, leaving the buyer responsible for 1.55% (under $500K) or 1.675% (over $500K) effectively.

Important: it doesn't apply to co-ops

Co-op purchases involve a transfer of shares in a corporation rather than real property. Because the mortgage recording tax is on real property mortgages, it doesn't apply to co-op share loans. This is one of the largest cost differences between buying a co-op and buying a condo. On a $1.2M loan, that's about $20,000 saved.

We explain the broader differences in co-op vs. condo: what's different below.

Can it be reduced?

Yes — through a Consolidation, Extension, and Modification Agreement, or "Purchase CEMA." When the seller has an existing mortgage and the buyer is financing, both sides can agree to consolidate the seller's existing loan into the buyer's new loan. The mortgage recording tax is then paid only on the new portion of the loan, not the consolidated total. On a transaction where the seller has a $400K balance and the buyer is taking $900K of new financing, a Purchase CEMA can save the buyer roughly $7,500.

CEMAs require coordination between the buyer's lender, the seller's lender, and both attorneys. Not every transaction qualifies, and not every lender will participate. But when it works, the savings are real.

Title insurance

Title insurance protects the buyer (and the lender) from defects in the property's title that weren't discovered during the title search. Defects include things like prior unpaid liens, fraudulent deeds, errors in public records, or claims from heirs of a previous owner.

Two policies

There are two separate policies a buyer typically pays for:

• Owner's policy — protects the buyer's equity in the property. Optional but strongly recommended. One-time premium at closing.
• Lender's policy — protects the mortgage lender. Required by virtually every lender as a condition of the loan.

How much it costs

Title insurance premiums in New York are regulated by the state. The owner's policy costs approximately $4.50 per $1,000 of coverage (i.e., the purchase price). On a $1.5M condo purchase, that's about $6,750 for the owner's policy. The lender's policy adds another $5–$10 per $1,000 of loan amount.

You typically pay both policies at closing in a single line item, and the title company that performs the search is usually the same one issuing the policy.

Co-op buyers don't pay title insurance because, again, co-ops are share transfers rather than real property transfers.

Attorney fees (buyer)

New York effectively requires both parties in a residential real estate transaction to be represented by attorneys. The buyer's attorney handles contract review and negotiation, due diligence on the property and (for co-ops) the building, coordination with the lender and title company, and attendance at the closing.

Typical range

Most NYC real estate attorneys charge between $2,000 and $4,000 for a standard residential closing. New construction (sponsor sales) tends to price higher because of the additional contract complexity.

At our firm, we charge a flat fee for residential closings — set in writing before any work begins, no hourly billing. The fee is the price. Read more about our flat-fee real estate practice or get a free quote in under an hour.

Sponsor / new development costs

When you buy a unit directly from the developer (a "sponsor sale"), several additional costs typically shift to the buyer that wouldn't exist in a resale transaction.

What sponsors typically pass to buyers

• Sponsor's attorney fee — typically $2,000 to $3,500. In a resale, each party pays their own attorney; in a sponsor sale, the buyer often pays both sides' fees.
• NYC and NYS transfer taxes — typically paid by the seller, but in sponsor sales, the buyer commonly absorbs these. Combined, about 1.825% of the purchase price.
• Working capital contribution — typically 1 to 3 months of common charges paid into the building's reserve fund.
• Sponsor's portion of the building's reserve fund — varies by building.

On a $2M new development purchase, these sponsor-pass-through costs can add $40,000 to $50,000 above the resale-equivalent costs. Always negotiate these — they're not always set in stone, especially if the project has unsold inventory.

Co-op vs. condo: what's different

The single biggest cost difference between a co-op and a condo isn't the purchase price — it's the closing costs. Here's why.

What co-op buyers don't pay

• Mortgage recording tax — saves ~$20,000 on a $1.2M loan
• Title insurance — saves ~$5,000 to $7,000 on a $1.5M purchase
• Recording fees — small but real, ~$300

What co-op buyers do pay (that condo buyers don't)

• Co-op application and processing fees — $500 to $2,000
• Move-in deposit — usually refundable, $500 to $2,500
• UCC-1 filing fee — $100 to $200, instead of the larger title-and-recording fees
• Stock transfer fee — $0.05 per share

Net effect: closing costs on a co-op are typically $20,000 to $25,000 less than on an equivalently priced condo with financing. This often surprises first-time buyers who assumed the differences were minor.

For more on which type of property fits your situation, talk to one of our attorneys — we handle both throughout NYC.

Seller closing costs at a glance

If you're selling a residential property in NYC, your closing costs are dominated by two line items: broker commissions and transfer taxes. On a $1.5M sale, here's what most sellers pay:

Total for a non-co-op condo: roughly $93,000 to $124,000 on a $1.5M sale, or 6% to 8%. For a co-op with a 2% flip tax, add another $30,000 — putting total seller costs in the 8% to 10% range that's standard for NYC.

Broker commission

The single largest cost for most NYC sellers is the broker commission. Traditionally 6% (3% to the listing agent, 3% to the buyer's agent), commissions are now widely negotiable — and following 2024 industry rule changes, the structure is shifting in ways that affect both sellers and buyers.

What's standard now

Most NYC residential sellers in 2026 negotiate listing-side commissions between 2.5% and 3.5%. Buyer-side compensation is now negotiated separately under the new rules — sellers can choose to offer it (most do, to stay competitive in marketing the listing) or not (more common at the high end, where buyers more often pay their own agent directly).

On a $1.5M sale, a seller paying a 5% total commission pays $75,000. Negotiating that to 4.5% saves $7,500 — the kind of savings worth pushing on. Listings priced over $2M often command lower percentages; flat-fee or discount brokerages exist but trade off marketing reach.

One important note

Commissions are always negotiable. There is no rule, regulation, or law that sets a fixed rate. If a broker tells you "this is the standard rate" — that's a pricing tactic, not a fact.

NYC and NYS transfer taxes

Two transfer taxes apply to virtually every residential sale in New York City. Both are paid by the seller at closing.

NYC Real Property Transfer Tax (RPTT)

• 1.0% on residential sales under $500,000
• 1.425% on residential sales of $500,000 or more

For commercial properties and residential properties with four or more units, higher rates apply (2.625% over $500K).

NYS Transfer Tax

• 0.4% on all residential sales
• 0.65% additional on residential sales of $3 million or more

So on a sale at $3.1M, the seller pays a combined 1.05% NYS tax. Below that threshold, just 0.4%.

Mansion tax surcharge (seller's side)

On sales of $1 million or more, the seller also pays an additional 0.25% NYC mansion tax surcharge. This is separate from the buyer-side mansion tax (1% to 3.9%) and applies in addition.

Combined transfer tax on a $1.5M sale: NYC RPTT (1.425%) + NYS (0.4%) + mansion surcharge (0.25%) = 2.075%, or $31,125.

Flip tax

If you're selling a co-op apartment, your building may impose a flip tax — also called a transfer fee. Despite the name, a flip tax isn't a government tax. It's a fee charged by the cooperative corporation, set in the building's proprietary lease and bylaws.

Common flip tax structures

• Percentage of sale price — most common, typically 1% to 3%
• Percentage of the seller's profit — less common, sometimes 10% of profit
• Per-share fee — older buildings, typically $1 to $5 per share
• Flat fee — uncommon, typically $5,000 to $25,000

Flip tax is paid by the seller in most buildings, but some buildings split it between buyer and seller, and a small number have the buyer pay it entirely. The structure is binding — you can't negotiate it out at closing. Always check the proprietary lease before listing your co-op so you know what's coming.

Attorney fees (seller)

Sellers' attorneys handle drafting and negotiating the contract, responding to buyer's due diligence requests, coordinating with the buyer's attorney and title company, preparing closing documents, and attending the closing. Typical NYC seller attorney fees range from $2,000 to $3,500 for a standard residential transaction.

Our firm offers flat-fee representation for sellers. Get a free quote for your specific transaction.

Calculate your specific costs

The numbers above are typical. Your specific transaction will vary based on purchase price, property type, financing, and building-specific costs.

Use our free calculators to estimate your costs in under a minute:

Frequently asked questions