New York has some of the highest closing costs in the country. Buyers and sellers in the Empire State pay thousands of dollars in taxes, fees, and charges beyond the purchase price. For a $500,000 home, total closing costs can run anywhere from $15,000 to $30,000 or more depending on the property type and location.
If you are buying a home in Staten Island or selling a house in New York, knowing these numbers ahead of time makes a real difference. The last thing you want is surprise fees eating into your budget at the closing table.
This guide breaks down every closing cost for New York buyers and sellers in 2026. You will find exact dollar amounts, tax rates, and tips to keep more money in your pocket.
What Are Closing Costs?
Closing costs are the fees and taxes you pay when a real estate transaction closes. They cover everything from government transfer taxes to lender charges to attorney fees. In New York, both the buyer and the seller have their own set of closing costs.
New York is unique for several reasons. The state requires attorneys for real estate transactions. New York City adds its own layer of taxes on top of state taxes. Co-ops, condos, and houses each carry different fee structures. These factors make NY closing costs higher than the national average of 2% to 5% of the purchase price.
Average Closing Costs in New York: Buyer vs. Seller
Here is a quick look at what each side typically pays.
Buyers in New York pay between 2% and 5% of the purchase price in closing costs. In New York City, that number climbs to 3% to 6% because of the mortgage recording tax and mansion tax.
Sellers in New York pay between 8% and 10% of the sale price. The bulk of that goes toward broker commissions (typically 5% to 6%), with transfer taxes and attorney fees making up the rest.
For a $750,000 home in NYC, the buyer might pay $22,500 to $45,000 in closing costs. The seller could pay $60,000 to $75,000. Outside the city, both sides pay less because several NYC-specific taxes do not apply.
| Cost Category | Buyer Range | Seller Range |
|---|---|---|
| Total Closing Costs (% of price) | 2% to 6% | 8% to 10% |
| On a $500,000 home | $10,000 to $30,000 | $40,000 to $50,000 |
| On a $750,000 home | $15,000 to $45,000 | $60,000 to $75,000 |
| On a $1,000,000 home | $30,000 to $60,000 | $80,000 to $100,000 |
These ranges assume standard broker commissions for sellers. If you negotiate a lower commission or sell without a broker, your costs drop.
Buyer Closing Costs in New York: Full Breakdown
Buyers in New York face a long list of fees. Some are fixed. Others depend on your loan amount, purchase price, and property location. Let’s go through each one.
Mortgage Recording Tax
This is one of the biggest closing costs for NYC buyers. New York State charges a mortgage recording tax on every new mortgage. In New York City, the combined state and city rate is:
- 1.8% of the mortgage amount for loans under $500,000
- 1.925% of the mortgage amount for loans of $500,000 or more
Outside NYC, the rate is lower at roughly 1.05% to 1.3% depending on the county.
On a $600,000 mortgage in NYC, you would pay $11,550 in mortgage recording tax at the 1.925% rate. That is a serious chunk of change. This tax is one of the main reasons NYC closing costs are higher than the rest of the state.
If you are buying a co-op, you do not pay mortgage recording tax because co-op purchases involve share transfers rather than property deeds. This is one of the financial differences between co-ops and condos.
Mansion Tax
New York’s mansion tax applies to residential purchases of $1 million or more. The tax rate increases as the price goes up. Here are the 2026 rates:
| Purchase Price | Mansion Tax Rate |
|---|---|
| $1,000,000 to $1,999,999 | 1.00% |
| $2,000,000 to $2,999,999 | 1.25% |
| $3,000,000 to $4,999,999 | 1.50% |
| $5,000,000 to $9,999,999 | 2.25% |
| $10,000,000 to $14,999,999 | 3.25% |
| $15,000,000 to $19,999,999 | 3.50% |
| $20,000,000 to $24,999,999 | 3.75% |
| $25,000,000+ | 3.90% |
On a $1,500,000 condo purchase, the mansion tax would be $15,000. The buyer pays this tax in full. Read our NYC mansion tax complete guide for strategies to manage this cost.
Title Insurance
Title insurance protects the buyer (and lender) from ownership claims, liens, or defects in the property title. New York has regulated title insurance rates set by the state.
For a $500,000 property, expect to pay roughly $2,000 to $3,500 for a lender’s title policy and an owner’s title policy. Many buyers purchase both. The lender’s policy is required if you have a mortgage. The owner’s policy is optional but strongly recommended.
You can learn more in our title insurance guide for NY and NJ.
Attorney Fees
New York is one of the few states that requires an attorney at closing. Buyer’s attorney fees typically range from $2,000 to $4,000 depending on the complexity of the deal and the attorney’s experience. For NYC transactions and co-op purchases, fees can run higher at $3,000 to $5,000.
Your attorney reviews the contract, orders title searches, coordinates with the lender, and represents you at the closing table.
Bank Attorney Fee
If you are taking out a mortgage, the lender will have its own attorney present at closing. The buyer pays this fee. Bank attorney fees typically run $750 to $1,500 in New York.
Loan Origination Fee
Your lender may charge an origination fee for processing your mortgage. This fee is usually 0.5% to 1% of the loan amount. On a $400,000 mortgage, that works out to $2,000 to $4,000.
Some lenders offer no-origination-fee loans in exchange for a slightly higher interest rate. Compare options carefully. Our guide on mortgage points and buydowns explains how these tradeoffs work.
Appraisal Fee
The lender requires an appraisal to confirm the property’s value. In New York, appraisal fees range from $400 to $750 for a single-family home. Multi-family properties and co-ops may cost more at $500 to $1,000.
Home Inspection Fee
While not a closing cost in the strictest sense, most buyers pay for an inspection during the contract period. Expect to pay $400 to $800 for a standard home inspection in New York. Specialized inspections (termite, radon, sewer scope) add $150 to $400 each.
Recording Fees
The county clerk charges a fee to record the deed and mortgage. Recording fees in New York are typically $200 to $500 depending on the county and the number of pages in the documents.
Application and Credit Report Fees
Lenders often charge $50 to $100 for pulling your credit report and $300 to $500 for the mortgage application fee. Some lenders bundle these into the origination fee.
Prepaid Costs (Escrow)
At closing, you will prepay certain items that go into your escrow account. These include:
- Homeowner’s insurance: 1 year prepaid, typically $1,000 to $3,000
- Property taxes: 2 to 6 months prepaid, varies by location
- Prepaid interest: Daily interest from closing day to the end of the month
- PMI/MIP (if applicable): If your down payment is less than 20%, you will pay private mortgage insurance. See our PMI vs. MIP guide for details.
Sample Buyer Closing Costs: $600,000 NYC Condo Purchase
| Fee | Estimated Cost |
|---|---|
| Mortgage Recording Tax (1.925% on $480,000 loan) | $9,240 |
| Attorney Fee | $3,000 |
| Bank Attorney Fee | $1,000 |
| Title Insurance (lender + owner) | $2,800 |
| Appraisal | $500 |
| Home Inspection | $600 |
| Loan Origination (0.5%) | $2,400 |
| Recording Fees | $300 |
| Application/Credit Fees | $400 |
| Prepaid Escrow (taxes, insurance, interest) | $3,500 |
| Total Estimated Buyer Costs | $23,740 |
That comes out to about 4% of the purchase price. If the property were $1 million or more, add the mansion tax on top.
Seller Closing Costs in New York: Full Breakdown
Sellers in New York pay their own set of fees. The biggest line item by far is the broker commission.
Broker Commission
The standard real estate commission in New York is 5% to 6% of the sale price, split between the listing agent and the buyer’s agent. On a $600,000 sale, that is $30,000 to $36,000.
Commission rates are always negotiable. Some sellers negotiate lower rates, especially on higher-priced properties. At Robert DeFalco Realty, our agents work with you to structure fair commission terms that align with your goals.
New York State Transfer Tax
The seller pays the NYS transfer tax at closing. The rates are:
- 0.4% of the sale price for properties under $3,000,000
- 0.65% of the sale price for residential properties of $3,000,000 or more
On a $600,000 sale, the transfer tax is $2,400. On a $4,000,000 sale, it jumps to $26,000.
NYC Transfer Tax (RPTT)
If the property is in New York City, the seller also pays the city’s Real Property Transfer Tax (RPTT). The rates depend on property type and price:
Residential Properties:
- 1% for sales of $500,000 or less
- 1.425% for sales over $500,000
Commercial Properties:
- 1.425% for sales of $500,000 or less
- 2.625% for sales over $500,000
On a $600,000 residential sale in NYC, the city transfer tax is $8,550. Combined with the state transfer tax of $2,400, the seller pays $10,950 in transfer taxes alone.
Seller’s Attorney Fee
The seller needs their own attorney. Fees range from $2,000 to $3,500 for a straightforward sale. Complex transactions, short sales, or properties with title issues can push fees higher.
Flip Tax (Co-ops Only)
Many co-op buildings charge a “flip tax” when an owner sells their unit. This is not a government tax. It is a fee paid to the co-op corporation. Flip taxes typically range from 1% to 3% of the sale price or a flat dollar amount per share.
On a $500,000 co-op sale with a 2% flip tax, the seller pays $10,000 to the building. Always check the co-op’s proprietary lease and house rules for the exact flip tax structure.
Capital Gains Tax
If you sell your home for a profit, you may owe federal and state capital gains taxes. The federal rate ranges from 0% to 20% depending on your income. New York State adds 4% to 10.9% in state income tax on the gain.
The IRS allows a capital gains exclusion of up to $250,000 for single filers and $500,000 for married couples filing jointly. You must have lived in the home as your primary residence for at least 2 of the last 5 years.
Use our capital gains tax calculator to estimate what you might owe.
Payoff Costs
If you still have a mortgage, you will pay it off at closing. Some lenders charge a payoff processing fee of $100 to $500. Check your loan documents for any prepayment penalties, though these are rare on most residential mortgages issued after 2014.
Sample Seller Closing Costs: $600,000 NYC Condo Sale
| Fee | Estimated Cost |
|---|---|
| Broker Commission (5.5%) | $33,000 |
| NYS Transfer Tax (0.4%) | $2,400 |
| NYC Transfer Tax / RPTT (1.425%) | $8,550 |
| Attorney Fee | $2,500 |
| Payoff Processing Fee | $250 |
| Miscellaneous (messenger, filing) | $500 |
| Total Estimated Seller Costs | $47,200 |
That is roughly 7.9% of the sale price. A co-op seller would also add the flip tax on top of this.
NYC-Specific Closing Costs
New York City adds layers of cost that do not exist in the rest of the state. Here is a summary of every NYC-specific charge.
NYC Mortgage Recording Tax
As noted above, this tax applies to all new mortgage recordings in the five boroughs. It is the single largest closing cost for many NYC buyers. The combined city and state rate of 1.8% to 1.925% applies only within NYC limits.
If you are buying in Westchester, Long Island, or upstate, you pay only the state portion at roughly 0.5%, plus a county-specific surcharge that brings the total to about 1.05% to 1.3%.
NYC Real Property Transfer Tax (RPTT)
This seller-paid tax adds 1% to 2.625% on top of the state transfer tax. The RPTT applies to every property sale in the five boroughs, including co-ops.
Mansion Tax (Statewide but Mainly Impacts NYC)
While the mansion tax technically applies statewide, it hits NYC buyers hardest because property values are so much higher. A starter apartment in Manhattan can easily cross the $1 million threshold that triggers this tax.
The progressive rate structure (1% to 3.9%) was introduced in 2019 and remains in effect for 2026. Read the full breakdown in our mansion tax guide.
Peconic Bay Region Transfer Tax (Long Island)
Buyers in the five East End towns of Suffolk County (East Hampton, Riverhead, Shelter Island, Southampton, and Southold) pay an additional 2% transfer tax known as the Peconic Bay Region Community Preservation Fund tax. This applies to all real estate transfers in these towns, on top of the standard state transfer tax.
New York State Transfer Tax: Detailed Look
The NYS transfer tax is straightforward, but the numbers add up fast.
| Sale Price | NYS Transfer Tax Rate | Tax on $600,000 Sale |
|---|---|---|
| Under $3,000,000 | 0.4% ($2 per $500) | $2,400 |
| $3,000,000 and above | 0.65% | N/A at this price |
The seller customarily pays this tax, though the parties can negotiate a different arrangement. The tax is due at closing and recorded with the deed.
For properties in NYC, the combined transfer tax burden (state + city) on a $600,000 sale is:
- State: $2,400 (0.4%)
- City: $8,550 (1.425%)
- Total: $10,950 (1.825%)
Outside NYC, the seller only pays the state’s 0.4%, which comes to $2,400 on that same sale.
Attorney Fees in New York Real Estate
New York and a handful of other states require attorneys for real estate transactions. This is actually a benefit. Your attorney protects your interests, catches contract issues, and handles title problems before they become expensive headaches.
What Does a Real Estate Attorney Do?
For the buyer:
- Reviews and negotiates the purchase contract
- Orders and reviews the title search
- Coordinates with the lender and title company
- Calculates and verifies closing costs
- Represents you at the closing table
- Records the deed
For the seller:
- Reviews and negotiates the contract of sale
- Resolves title issues (liens, judgments, outstanding violations)
- Prepares the deed and transfer documents
- Calculates net proceeds
- Represents you at closing
Typical Attorney Fee Ranges in 2026
| Transaction Type | Buyer’s Attorney | Seller’s Attorney |
|---|---|---|
| Standard house sale (outside NYC) | $1,500 to $3,000 | $1,500 to $2,500 |
| NYC condo or house | $2,500 to $4,000 | $2,000 to $3,500 |
| Co-op purchase or sale | $3,000 to $5,000 | $2,500 to $4,000 |
| New construction | $3,000 to $5,000 | $2,000 to $3,500 |
Co-op transactions cost more because the attorney must review the building’s financial statements, proprietary lease, house rules, and board application. New construction deals also require extra due diligence on offering plans and sponsor documents.
Title Insurance Costs in New York
New York regulates title insurance premiums, so rates are consistent across providers. The New York State Department of Financial Services sets the rate schedule.
How Title Insurance Pricing Works
Title insurance in NY is based on a “per thousand” rate structure. The premium decreases on a sliding scale as the property value increases.
For a $500,000 property, a standard owner’s policy costs roughly $2,000 to $2,500. A lender’s policy on the same property runs about $1,200 to $1,800. You can save by purchasing both from the same company, which gives you a “simultaneous issue” discount.
Who Pays for Title Insurance?
In New York, the buyer typically pays for both the lender’s policy and the owner’s policy. This is different from some states where the seller pays for the owner’s policy.
For a deeper look, read our title insurance guide.
How to Reduce Closing Costs in New York
Closing costs in New York are steep, but you do have options to bring them down.
1. Negotiate Seller Concessions
Sellers can contribute toward your closing costs as part of the deal. This is common in buyer’s markets. On a conventional loan, the seller can cover up to 3% to 9% of the sale price in closing costs, depending on your down payment. Check our seller concessions guide for specifics.
2. Shop Around for Lender Fees
Origination fees, application fees, and rate lock fees vary from lender to lender. Get quotes from at least three lenders. Even a 0.25% difference in origination fees saves $1,000 on a $400,000 loan. Start with a mortgage preapproval to see where you stand.
3. Buy a Co-op Instead of a Condo
Co-op buyers skip the mortgage recording tax because there is no real property deed. On a $600,000 purchase with a $480,000 mortgage, that saves roughly $9,000 in NYC. The tradeoff is the co-op flip tax when you sell and the sometimes lengthy board approval process.
4. Ask About CEMA Loans (Assignment of Mortgage)
If you are buying a property where the seller has an existing mortgage, you may be able to use a Consolidation, Extension, and Modification Agreement (CEMA). Instead of recording an entirely new mortgage, the buyer “assumes” the seller’s existing mortgage recording and only pays the mortgage recording tax on the difference.
For example, if the seller’s remaining mortgage is $300,000 and your new mortgage is $500,000, you only pay the mortgage recording tax on the $200,000 difference. At the 1.925% rate, that saves over $5,700.
CEMA transactions are common in NYC and can save buyers thousands. Your attorney can coordinate this with both lenders.
5. Choose a No-Fee or Low-Fee Lender
Some lenders offer reduced closing cost packages. You may pay a slightly higher interest rate, but this can make sense if you plan to refinance or sell within a few years.
6. Time Your Purchase to Reduce Prepaid Interest
Closing at the end of the month reduces the amount of prepaid interest you owe. If you close on the 28th, you prepay just 2 to 3 days of interest. Close on the 1st, and you prepay nearly a full month.
7. Use an Affordability Calculator
Before you commit, run the numbers through our home affordability calculator to make sure you can handle both the purchase price and the closing costs.
Closing Costs for Co-ops vs. Condos vs. Houses
The type of property you buy (or sell) in New York changes your closing cost picture. Here is a side-by-side comparison.
Co-ops
Buyer costs:
- No mortgage recording tax (shares, not real property)
- No title insurance (not real property)
- Attorney fee: $3,000 to $5,000 (higher due to board package review)
- Application fee to the co-op board: $500 to $1,000
- Move-in deposit: $500 to $2,000 (refundable)
- Mansion tax: Still applies if price is $1 million or more
Seller costs:
- Flip tax: 1% to 3% of sale price (paid to the building)
- NYS transfer tax: 0.4%
- NYC RPTT: 1% to 1.425%
- Attorney fee: $2,500 to $4,000
- Broker commission: 5% to 6%
Condos
Buyer costs:
- Mortgage recording tax: 1.8% to 1.925% (NYC)
- Title insurance: $2,000 to $3,500
- Attorney fee: $2,500 to $4,000
- Mansion tax: Applies if $1 million or more
- Recording fees: $200 to $500
Seller costs:
- NYS transfer tax: 0.4%
- NYC RPTT: 1% to 1.425%
- Attorney fee: $2,000 to $3,500
- Broker commission: 5% to 6%
- No flip tax (condos do not have flip taxes)
Houses (1-4 Family)
Buyer costs:
- Mortgage recording tax: 1.05% to 1.925% (varies by location)
- Title insurance: $2,000 to $3,500
- Attorney fee: $1,500 to $4,000
- Home inspection: $400 to $800
- Mansion tax: Applies in NYC if $1 million or more
- Recording fees: $200 to $500
Seller costs:
- NYS transfer tax: 0.4%
- NYC RPTT (if in NYC): 1% to 1.425%
- Attorney fee: $1,500 to $3,500
- Broker commission: 5% to 6%
For more on co-op versus condo fees, including monthly maintenance and HOA charges, check our detailed comparison.
Quick Comparison Table
| Cost Item | Co-op | Condo | House |
|---|---|---|---|
| Mortgage Recording Tax | No | Yes | Yes |
| Title Insurance | No | Yes | Yes |
| Flip Tax (seller) | Yes (1-3%) | No | No |
| Mansion Tax (buyer) | Yes | Yes | Yes (NYC) |
| Home Inspection | Rarely | Sometimes | Yes |
| Board Approval | Yes | Sometimes | No |
New York vs. New Jersey Closing Costs Comparison
Many buyers in the metro area consider homes on both sides of the Hudson River. The closing cost structures differ between the two states.
| Cost Item | New York | New Jersey |
|---|---|---|
| Attorney Required | Yes | Yes (customary) |
| Buyer Attorney Fee | $1,500 to $5,000 | $1,000 to $3,000 |
| Transfer Tax (seller) | 0.4% to 0.65% (state) + up to 2.625% (NYC) | 0.4% to 1.21% (varies by price) |
| Mortgage Recording Tax | 1.05% to 1.925% | None |
| Mansion Tax | 1% to 3.9% (on $1M+) | 1% (on $1M+) |
| Title Insurance | Buyer pays | Seller typically pays |
| Realty Transfer Fee | N/A | ~1% (split buyer/seller) |
The biggest difference is the mortgage recording tax, which does not exist in New Jersey. This alone can save a buyer $5,000 to $15,000 or more on an NYC-equivalent purchase.
For a full breakdown of Garden State fees, read our closing costs in New Jersey guide.
Frequently Asked Questions About Closing Costs in New York
How much are closing costs in New York for a buyer?
Buyers in New York typically pay 2% to 6% of the purchase price in closing costs. Outside NYC, costs run 2% to 4%. In NYC, the mortgage recording tax and potential mansion tax push costs to 3% to 6%. On a $500,000 purchase in NYC, expect $15,000 to $30,000 in buyer closing costs.
How much are closing costs in New York for a seller?
Sellers pay 8% to 10% of the sale price. Broker commissions account for the largest share at 5% to 6%. Transfer taxes add another 0.4% to 2% depending on location. Attorney fees and miscellaneous costs round out the total.
Who pays closing costs in New York, the buyer or the seller?
Both sides pay closing costs, but they pay different fees. Buyers pay mortgage-related costs, title insurance, and the mansion tax. Sellers pay broker commissions, transfer taxes, and their attorney. Some costs are negotiable between the parties. Seller concessions can shift some buyer costs to the seller.
What is the mansion tax in New York?
The mansion tax is a buyer-paid tax on residential purchases of $1 million or more. Rates start at 1% and climb to 3.9% for properties over $25 million. It applies statewide, though it mainly affects NYC buyers. Our mansion tax guide has the full rate table and planning strategies.
Are closing costs tax deductible in New York?
Some closing costs are tax deductible. Property taxes prepaid at closing, mortgage interest, and mortgage points may be deductible in the year you close. Transfer taxes and title insurance are not deductible for buyers. Sellers can deduct transfer taxes and broker commissions from their capital gains calculation.
Can I roll closing costs into my mortgage in New York?
In most cases, you cannot roll closing costs into a conventional purchase mortgage. The appraised value limits how much the lender will finance. Some loan programs, like VA loans and certain FHA streamline refinances, allow limited closing cost financing. Another option is a lender credit, where you accept a higher interest rate in exchange for reduced upfront costs.
What is a CEMA and how does it save money?
A CEMA (Consolidation, Extension, and Modification Agreement) lets a buyer avoid paying the full mortgage recording tax on a new loan. The buyer essentially takes assignment of the seller’s existing mortgage recording and only pays the tax on the difference between the old and new loan amounts. In NYC, this can save $5,000 to $20,000 or more.
Do I pay closing costs on a co-op in New York?
Yes, but co-op closing costs differ from condo and house purchases. Co-op buyers do not pay mortgage recording tax or title insurance because the transaction involves shares in a corporation, not real property. Co-op buyers do pay attorney fees, the mansion tax (if applicable), and the co-op’s application and move-in fees. Co-op sellers pay the flip tax, which most buildings charge at 1% to 3% of the sale price.
How can I estimate my closing costs before making an offer?
Ask your real estate agent or attorney for a closing cost estimate based on the property price and type. Your lender will provide a Loan Estimate within three business days of your mortgage application. This document breaks down every lender-related cost. For a general estimate, use our affordability calculator and factor in 3% to 6% for buyer costs on top of your down payment.
When do I pay closing costs in New York?
You pay closing costs at the closing table on the day of the transaction. Your attorney or the title company will prepare a closing statement showing every charge. Buyers bring a certified or cashier’s check (or wire the funds) for the total amount. Seller costs are deducted from the sale proceeds before the seller receives their net check.
Ready to Buy or Sell in New York?
Closing costs in New York are higher than most states. Knowing the exact fees ahead of time gives you the power to plan, negotiate, and save. Whether you are buying your first home in Staten Island or selling a co-op in Manhattan, the right preparation makes all the difference.
The team at Robert DeFalco Realty helps buyers and sellers across New York and New Jersey understand every dollar of their transaction. We walk you through your closing cost estimate before you ever make an offer or list your home.
Call us at (718) 987-9200 or reach out online to get a personalized closing cost estimate for your next move.
Disclaimer: This article provides general information about closing costs in New York as of 2026. Tax rates, fees, and regulations can change. Always consult with your real estate attorney and tax advisor for guidance specific to your transaction.