NYC Property Taxes

If you sell real property in New York City you'll have to pay local and state transfer taxes. The combined transfer tax burden in NYC could result in a 1.4% to 2.075% tax in total. The NYC transfer tax rate is between 1% and 1.425% depending on the sale price; and in addition to what you'll owe the city, you'll also have to pay the New York state transfer tax, which is either 0.4% or 0.65% depending on the price of the property.

The average co-op flip tax in NYC is between 1% to 3% of an apartment's sale price, but the exact amount varies by building. HDFC buildings can have much higher flip taxes, and even some condos have them as well.

The NYC mansion tax is calculated based on the purchase price of a property and ranges from 1% to 3.9%. Depending on the price, the mansion tax rate increases progressively and only applies to homes that sell for $1 million or more.

In NYC, 421-a tax abatements were introduced in 1971 and were implemented to encourage developers to develop unused and underutilized land by offering them reduced property taxes for a set amount of time, typically between 10-25 years. Usually, the tax break goes with the property, as long as the project continues to qualify. 

It’s no secret that people who purchase property are often concerned with the and amount of property tax payments they will have to make, and NYC owners are no exception. We're taking a look at how rates are assessed and why some uber-luxury condos and co-ops receive tax bills that seem far too low.