A Brooklyn home seller pays two transfer taxes, 0.4% to New York State and 1.425% to New York City when the price is over $500,000.
At the 2026 Midwood median of $900,000, that’s $16,425, and it normally comes out of your proceeds at closing. The 1% mansion tax on sales of $1,000,000 or more belongs to the buyer.
New York State and NYC real property transfer tax rates
A Brooklyn sale owes a state transfer tax and a separate city one. The state tax is $2 for every $500 of the price. The city tax is the Real Property Transfer Tax, usually shortened to RPTT.
| Tax | Rate on a home sale | Who pays |
|---|---|---|
| New York State transfer tax | 0.4% ($2 per $500) | Seller |
| New York City RPTT | 1% up to $500K, 1.425% above | Seller |
| State additional base tax, city sales only | 0.25% at $3M and up | Seller |
| Mansion tax | 1% at $1M and up | Buyer |
| Supplemental tax, city sales only | 0.25% to 2.9% at $2M and up | Buyer |
Sources: NYS Department of Taxation and Finance, Real estate transfer tax and Form TP-584-NYC-I; New York City Department of Finance, Real Property Transfer Tax.
These rates apply to residential real property: a one, two or three family house, a condo unit or a co-op apartment. A building with four or more apartments falls under the city’s other rate, 1.425% up to $500K and 2.625% above it.
The city rate applies to the whole price once you cross the line. A sale at exactly $500,000 owes $5,000 in city tax. One dollar more and the bill is $7,125.
How the real estate transfer tax is calculated at 2026 Brooklyn prices
Here’s the math at what homes in our three neighborhoods actually sold for this year. Past $500K, the seller’s combined rate is a flat 1.825%, so the tax due is simply the price times that rate.
| 2026 median sale | Price | State tax | City tax | Seller total |
|---|---|---|---|---|
| Midwood, all homes | $900K | $3,600 | $12,825 | $16,425 |
| Madison, all homes | $996K | $3,984 | $14,193 | $18,177 |
| Marine Park, all homes | $820K | $3,280 | $11,685 | $14,965 |
| Midwood, one-family house | $1.44M | $5,760 | $20,520 | $26,280 |
Prices: New York City Department of Finance Rolling Sales, Brooklyn, file dated September 9, 2026. Median of recorded sales from January 1 to August 31, 2026 of houses with one to three families, condos and co-ops at $100,000 or more, with multi-lot package sales counted once. Tax math uses the rates above.
The buyer of that Midwood one-family house also owes $14,400 in mansion tax, which the state calls the additional tax. It’s their cost, yet it shapes what they can offer, so it’s worth knowing when you set a price. Our guide to selling a Brooklyn home walks through what you keep after commission and transfer taxes.
Co-op sellers pay too. The city taxes transfers of co-op shares, and the state counts a co-op apartment as residential property. Midwood’s 2026 co-op median was $320K, under the $500K line, so that seller owes $1,280 to the state and $3,200 to the city.
Who pays the transfer tax and the mansion tax in NYC
The seller pays both transfer taxes. Under New York’s tax law, the buyer can’t pay the state’s share directly or indirectly unless the contract says so. The city puts the RPTT on the seller as well.
A buyer only has to pay the tax if the seller doesn’t or is exempt, such as a government agency selling a property. The mansion tax runs in reverse. The buyer owes it, and the seller is on the hook only if the buyer doesn’t pay.
Who is exempt from transfer tax in New York
Very few home sales are exempt. Most exemptions turn on who the seller is, or on deeds where nothing is sold.
- Government and the United Nations. New York State, the United States, their agencies and the UN are exempt under state rules. The city also exempts religious, charitable and educational nonprofits, though the return still gets filed.
- Gifts. A bona fide gift with no money behind it isn’t a taxable sale.
- Inheritance. Passing a house by will isn’t a conveyance of real property under state rules, and the city exempts a deed from an executor carrying out a will. If the executor sells the house to a buyer, that sale is taxed.
- A change in form only. Moving a house into an entity with the same owners holding the same shares isn’t taxed.
Selling part of an LLC can be taxed. Both the state and the city tax a transfer of 50% or more of an entity that holds an interest in real property.
When New York real property transfer taxes are due
In practice both get paid at the closing table. For real property located in New York City, the state return is Form TP-584-NYC, due by the 15th day after the deed is delivered. The city’s real property transfer tax return is filed through ACRIS within 30 days, even when no tax is owed, and buyer and seller both sign it.
Filing the city return late adds 5% of the tax for each month, up to 25%. Closing attorneys usually prepare these forms, so the part you control is knowing the number before you price. Here’s what we handle for Brooklyn sellers between pricing and that closing.
Common follow-up questions
Who pays transfer tax in NYC, the buyer or the seller?
The seller pays the NYS transfer tax and the city RPTT. The buyer pays the 1% mansion tax at $1M and up, plus the city supplemental tax at $2M and up.
How much is transfer tax on a $1 million house in Brooklyn?
At $1,000,000, the seller owes $4,000 to the state and $14,250 to the city, $18,250 in all. The buyer owes $10,000 in mansion tax. At $999,999 the mansion tax would be zero.
Can the seller pass the transfer tax to the buyer?
Only if the contract says so. State rules allow it by agreement, and when a buyer takes on the tax that way, the amount of tax isn’t added to the price it’s figured on.
What if an LLC owns the house I’m selling?
The sale is taxed at the same rates. For a building with up to four family units, the state won’t accept the transfer tax return unless it names every member and manager of the LLC, with addresses.
From The Behfar Team
We work from our office at 1524 East 23rd Street in Midwood and have closed 494 buyer and seller transactions. So far in 2026 the team reports 60 closed sales worth $80.7 million, 34 of them for sellers. Our 144 Google reviews are the most of any Midwood agency, and our agents speak six languages.
Know your number before you list
We’ll give you a price read based on what actually sold near you, so you can run the transfer tax math on a real figure. You can also call the office at 347-988-2526.
Rates, deadlines and exemptions here come from the New York State Department of Taxation and Finance and the New York City Department of Finance. This is general information, not tax or legal advice. Talk to your accountant or attorney about your own sale.
