Who pays the mansion tax in New York?

The buyer. New York Tax Law section 1402-A sets a 1 percent additional tax on residential purchases of $1 million or more and says it is paid by the buyer.

Are closing costs different for a co-op?

Yes. Co-op buyers usually pay board application fees and a lien search instead of title insurance, and share loans are not recorded like a mortgage.

Who pays transfer taxes in New York City?

On most resale purchases the seller pays the city and state transfer taxes. New development contracts can shift them to the buyer, so read the sponsor contract with your attorney.

When will I know my final costs?

Your lender must give you the Closing Disclosure three business days before closing. Your attorney can estimate the rest earlier.

Buyer Closing Costs in New York: What to Expect

By the MoveMatched editorial team · Last updated 2026-10-29

General information, not legal or tax advice. Rules change, so confirm with the official source or a licensed professional.

In New York, closing costs vary a lot by property type. A house or condo purchase looks different from a co-op share purchase, and New York City adds its own taxes. Here are the categories to expect and where to find your real numbers.

Start with your Loan Estimate and Closing Disclosure

If you use a mortgage, your lender gives you a Loan Estimate after you apply and a Closing Disclosure before closing. Federal rules require the Closing Disclosure three business days before your scheduled closing. Use both to see your actual costs.

Costs most buyers see

Your attorney's fee. Buyers in New York usually hire an attorney for the contract and closing.
Lender fees, points if you choose them, appraisal and credit report.
Title insurance and title search for houses and condos.
Recording fees for the deed and mortgage.
Prepaid homeowners insurance, interest and escrow deposits.
Adjustments with the seller for taxes or common charges already paid.

The mansion tax

New York Tax Law section 1402-A sets an additional tax of 1 percent on the purchase of residential property when the price is $1 million or more. The law says the buyer pays it. It applies across New York State, including New York City.

Mortgage recording tax

When you finance a house or condo, New York charges a mortgage recording tax when the mortgage is recorded. The rate depends on the location and loan amount. Your lender and attorney will show it on your estimate. Co-op share loans are not recorded the same way, so this works differently for co-ops.

Co-op specific costs

Board application and processing fees set by the building.
Lien search instead of a full title search.
A flip tax in some buildings, which is usually a seller cost but check the building's rules.
Move in deposits or fees set by building management.

New York City transfer taxes

New York City has its own real property transfer tax, and New York State has a transfer tax too. These are usually seller costs on resale purchases, but new development deals can shift them to the buyer. The NYC Department of Finance explains the city tax on its site. Ask your attorney before you sign a sponsor contract.

How to keep costs down

Compare Loan Estimates from at least two or three lenders.
Ask about first-time buyer programs, such as SONYMA's.
Negotiate credits after inspection or due diligence.
Ask your attorney for a full closing cost estimate before you sign the contract.

Protect your money on closing day

Your cash to close includes your down payment and closing costs, minus your deposit and any credits. It is usually sent by wire or certified check. Before you wire anything, call your attorney at a number you already have to confirm the instructions. Scammers send fake wiring emails that look real, and once the money is gone it is very hard to recover.

Bring a government ID to the closing, and ask your attorney which other documents you need.

Who to ask about each cost

Your lender: loan fees, points, appraisal, mortgage recording tax and escrow deposits.
Your attorney: title, lien search, transfer taxes, the mansion tax and building fees.
Your insurance agent: homeowners or apartment insurance.
The building's managing agent: board application, move in fees and deposits for co-ops and condos.

Questions people ask

Who pays the mansion tax in New York?: The buyer. New York Tax Law section 1402-A sets a 1 percent additional tax on residential purchases of $1 million or more and says it is paid by the buyer.
Are closing costs different for a co-op?: Yes. Co-op buyers usually pay board application fees and a lien search instead of title insurance, and share loans are not recorded like a mortgage.
Who pays transfer taxes in New York City?: On most resale purchases the seller pays the city and state transfer taxes. New development contracts can shift them to the buyer, so read the sponsor contract with your attorney.
When will I know my final costs?: Your lender must give you the Closing Disclosure three business days before closing. Your attorney can estimate the rest earlier.