The short answer
Budget about 2% of the purchase price for a co-op and about 3% to 5% for a condo or a one- to three-family house. Two items make most of the difference: the mortgage recording tax (1.8% of the loan under $500,000 and 1.925% at $500,000 or more), which co-op loans don't pay, and New York's mansion tax, which starts at 1% of the price on homes of $1 million or more.
Key numbers
- Co-op
- About 2% of the price, with no mortgage recording tax or title insurance
- Condo or house
- About 3% to 5% of the price
- Mortgage recording tax (NYC)
- 1.8% of the loan under $500,000; 1.925% at $500,000 or more
- Mansion tax
- 1% from $1 million; NYC rates rise from $2 million to 3.9% at $25 million
- Usually paid by the seller
- NYC and NYS transfer taxes, except in many new-development sales
Closing costs at a glance
| Cost | Co-op | Condo | House (1–3 family) |
|---|---|---|---|
| Buyer's attorney | $2,000–$4,000 | $2,000–$4,500 | $2,000–$4,500 |
| Mortgage recording tax (if financed) | None | 1.8% or 1.925% of the loan | 1.8% or 1.925% of the loan |
| Mansion tax ($1 million and up) | 1% or more of the price | 1% or more of the price | 1% or more of the price |
| Title insurance | None; a lien search instead | About 0.4%–0.6% of the price for the owner's policy, plus the lender's policy | Same as a condo |
| Lender and bank-attorney fees | Yes | Yes | Yes |
| Building fees | Lien search, recognition agreement, managing agent and move-in fees | Application, right-of-first-refusal waiver and move-in fees | None |
| New-development extras | Rare | Often the NYC and NYS transfer taxes and the sponsor's attorney fee | Sometimes |
These are typical ranges. Your attorney and lender will give you exact figures before closing.
The mansion tax, bracket by bracket
New York State charges a 1% mansion tax on residential purchases of $1 million or more, and the buyer pays it. In New York City, a supplemental tax raises the total rate for homes from $2 million. The rate applies to the whole price, including the first million.
| Price | Total mansion tax rate in NYC |
|---|---|
| Under $1,000,000 | None |
| $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 and up | 3.90% |
Outside the city, including Nassau County on Long Island, the mansion tax is a flat 1% from $1 million. A State Senate bill introduced in June 2026 (S10652) would raise the threshold to $2 million. It has not become law.
Because the tax applies to the full price, a home at $1,000,000 carries $10,000 more in tax than one at $999,999. Buyers near the line often negotiate with that in mind.
The mortgage recording tax
When you finance a condo or a house in New York City, a tax is charged on the loan amount when the mortgage is recorded. Borrowers pay 1.8% on loans under $500,000 and 1.925% on loans of $500,000 or more. The lender pays an additional 0.25%. Co-op purchases are exempt, because a co-op loan is secured by shares in the building's corporation.
In Nassau County, the borrower's share on a one- or two-family home is 0.8% of the loan.
If the seller has a mortgage and that lender agrees, a CEMA (consolidation, extension and modification agreement) lets your lender take over the seller's loan balance so that the tax applies only to the new money. It takes coordination, so raise it early.
Three examples from Queens
These estimates use typical fee ranges and leave out prepaid items such as property-tax escrow and homeowners insurance.
A $450,000 co-op with 20% down
- Loan: $360,000
- Mortgage recording tax: $0 for a co-op
- Mansion tax: $0, since the price is under $1 million
- Attorney: $2,000–$3,500
- Lender and bank-attorney fees: $1,500–$3,000
- Co-op fees for the lien search, recognition agreement and move-in: $1,000–$2,500
- Estimated total: $4,500–$9,000, or about 1% to 2% of the price
A $650,000 condo in Flushing with 20% down
- Loan: $520,000
- Mortgage recording tax: 1.925% × $520,000 = $10,010
- Mansion tax: $0
- Title insurance and title fees: about $3,500–$5,000
- Attorney: $2,500–$4,000
- Lender and bank-attorney fees: $1,500–$3,000
- Condo application and move-in fees: $500–$1,500
- Estimated total: $18,000–$23,500, or about 2.8% to 3.6% of the price
A $1,200,000 house in Bayside with 20% down
- Loan: $960,000
- Mortgage recording tax: 1.925% × $960,000 = $18,480
- Mansion tax: 1% × $1,200,000 = $12,000
- Title insurance and title fees: about $6,000–$8,500
- Attorney: $2,500–$4,500
- Lender and bank-attorney fees: $2,000–$4,000
- Estimated total: $41,000–$47,500, or about 3.4% to 4.0% of the price
Costs that catch buyers off guard
- The mansion tax is due in cash at closing. It can't be added to your mortgage.
- New construction can shift the seller's taxes to you. In many new-development condos, the offering plan makes the buyer pay the NYC and NYS transfer taxes and the sponsor's attorney fee.
- Co-op buyers pay building fees for the lien search, the recognition agreement your lender needs, the managing agent's processing and the move-in deposit.
- Adjustments are settled at closing. Property taxes, maintenance or common charges, and insurance are prorated on top of the costs above.
How to keep closing costs down
- Get written Loan Estimates from at least two lenders and compare them line by line.
- Ask whether a CEMA is possible when the seller has a mortgage.
- Compare attorney fees, and ask what each quote includes.
- On new construction, negotiate who pays the transfer taxes before you sign.
Questions people ask
Who pays the mansion tax in New York?
The buyer. It is 1% of the price on residential purchases of $1 million or more, and higher in New York City from $2 million, up to 3.9% at $25 million and above.
Do co-op buyers pay the mortgage recording tax?
No. A co-op loan is secured by shares in the co-op corporation rather than by a recorded mortgage on real property, so the tax doesn't apply. Co-op buyers also don't buy title insurance.
Are closing costs lower on Long Island?
For financed purchases they often are. In Nassau County the borrower's mortgage recording tax on a one- or two-family home is 0.8% of the loan, compared with 1.8% or 1.925% in New York City. The 1% mansion tax still applies from $1 million.
Can I roll closing costs into my mortgage?
Generally no. Most closing costs, including the mansion tax, are paid at closing. Some lenders offer a credit toward closing costs in exchange for a higher interest rate.
Sources
- NY Department of Taxation and Finance, TSB-M-19(1)R: transfer tax and mansion tax
- NYC Department of Finance, Real Property Transfer Tax
- New York State Senate Bill S10652 (2026), mansion tax adjustment act
- Hauseit, The mortgage recording tax in NYC
- Pro National Title, New York fee and recording tax schedule
- Milton Coste, NYC buyer closing costs: co-op vs. condo
- Alta Real Estate, Title insurance owner's policy premiums in NYC
This guide is general information about New York real estate as of October 30, 2026. It isn't legal, tax or financial advice. Rates, programs and rules change, so confirm the details of your purchase or sale with your attorney, lender or tax advisor.