New York Closing Costs Guide 2026
What buyers and sellers pay at closing in New York — the mortgage recording tax, mansion tax, required attorney fees, transfer taxes, and tips for reducing your total cash to close in one of the country’s most complex closing states.
Buyer Closing Costs in New York
New York has some of the highest buyer closing costs in the country due to the mortgage recording tax, required attorney fees, and the mansion tax on purchases over $1 million.
| Fee | Typical Amount | On a $600,000 Purchase ($480K Loan) |
|---|---|---|
| Mortgage Recording Tax (outside NYC) | 1.05% of loan amount | ~$5,040 |
| Mortgage Recording Tax (NYC) | 2.05% (loans under $500K) / 2.175% (loans $500K+) | ~$10,440 |
| Buyer real estate attorney | $1,500–$3,000 (residential) | ~$2,000 |
| Title insurance (owner’s + lender’s) | NY-regulated rates | ~$3,000–$5,000 |
| Lender fees (origination, underwriting) | 0.5–1% of loan | ~$2,400–$4,800 |
| Appraisal | Paid upfront or at closing | ~$600–$900 |
| Homeowner’s insurance (prepaid) | First year premium | ~$1,200–$2,500 |
| Property tax escrow | 2–6 months impound | Varies significantly by county |
| Recording fees | County-set fees | ~$100–$250 |
These are estimates only. Actual closing costs depend on your lender, title company, loan type, closing date, and what’s negotiated in your purchase contract. Always request a Loan Estimate from your lender within 3 business days of application, and review your Closing Disclosure carefully at least 3 days before closing.
New York Mortgage Recording Tax (MRT)
The New York Mortgage Recording Tax is imposed on the recording of a mortgage on real property in New York State. It is one of the largest buyer closing costs and has no equivalent in most other states.
| Location | MRT Rate | On a $400K Loan | On a $800K Loan |
|---|---|---|---|
| Most upstate NY counties | 1.05% | $4,200 | $8,400 |
| New York City (loans under $500K) | 2.05% | $8,200 | N/A |
| New York City (loans $500K and over) | 2.175% | N/A | $17,400 |
The MRT consists of a basic tax and additional taxes that vary by county. Some counties impose higher rates than the state minimum. The MRT is paid by the buyer and recorded with the county clerk. VA loans receive a partial MRT exemption in New York — consult your attorney for current exemption rules.
New York Mansion Tax
New York State imposes a Mansion Tax — a graduated transfer tax paid by the buyer — on residential real property purchases of $1,000,000 or more. The tax is particularly relevant for buyers in New York City, Westchester, Nassau, and other high-cost markets.
| Purchase Price | Mansion Tax Rate | Total Tax |
|---|---|---|
| Under $1,000,000 | No mansion tax | $0 |
| $1,000,000–$1,999,999 | 1.00% | $10,000–$19,999 |
| $2,000,000–$2,999,999 | 1.25% | $25,000–$37,499 |
| $3,000,000–$4,999,999 | 1.50% | $45,000–$74,999 |
| $5,000,000–$9,999,999 | 2.25% | $112,500–$224,999 |
| $10,000,000–$14,999,999 | 3.25% | $325,000–$487,499 |
| $15,000,000–$19,999,999 | 3.50% | $525,000–$699,999 |
| $20,000,000–$24,999,999 | 3.75% | $750,000–$937,499 |
| $25,000,000 or more | 3.90% | $975,000+ |
The mansion tax applies to the entire purchase price at the applicable rate — it is not applied only to the amount above the threshold. A $1,000,001 purchase triggers 1% on the entire amount.
Seller Closing Costs in New York
| Fee | Typical Amount | On a $600,000 Sale |
|---|---|---|
| Real estate agent commissions | Varies (per NAR settlement rules) | Varies |
| NY State Transfer Tax | 0.4% of purchase price | $2,400 |
| NYC Transfer Tax (if applicable) | 1.0% (under $500K) / 1.425% ($500K+) | $8,550 (NYC) |
| NY State Transfer Tax (over $3M) | Additional 0.25% “mansion seller tax” | N/A below $3M |
| Seller real estate attorney | $1,500–$2,500 | ~$2,000 |
| Mortgage payoff / reconveyance | Varies | Varies |
Attorney Requirements at New York Closings
New York is one of a minority of states that requires both the buyer and seller to be represented by their own licensed real estate attorneys at closing. This is not an optional expense — it is required by New York legal practice and strongly expected by all parties.
- Both parties need separate attorneys — The buyer’s attorney and seller’s attorney are different people; they cannot share representation
- Attorney reviews the contract — In New York, the real estate contract is typically prepared by the seller’s attorney and reviewed by the buyer’s attorney before signing. This “attorney review” period is a standard part of the NY buying process
- Attorney handles title search — Your attorney typically coordinates with the title company and reviews the title report
- Attorney attends closing — Your attorney represents you at the closing table and reviews all loan documents
- Typical buyer attorney fee: $1,500–$3,000 for a standard residential transaction; more for complex deals or co-ops
How to Reduce Your Closing Costs in New York
- Negotiate seller concessions: Ask the seller to contribute toward buyer closing costs — up to 3% (conventional), 6% (FHA), unlimited (VA). In NYC, ask the seller to pay the attorney fee and title insurance
- VA loan MRT exemption: If you’re an eligible veteran, the partial MRT exemption can save thousands — confirm the exemption with a NY real estate attorney
- Shop for title insurance: Title insurance rates are regulated in NY but you can compare service quality and fees among title companies
- Close strategically: Closing near month-end reduces prepaid interest
- Lender credits: Accept a slightly higher rate in exchange for lender credits to offset MRT and other upfront costs
