Please note the following transfer tax increases which may affect contracts of sale in NYC entered into on or after April 1, 2019, and closing on or after July 1, 2019. Anything closing prior to July 1, 2019, will use the prior tax rates. Currently, only the City of New York meets the population requirement set forth in the statute. Please see the chart below to determine how the new law impacts your current and future transactions.
Transfer Tax, Payable by Grantor
| PROPERTY TYPE | CONSIDERATION | TAX RATE |
| Residential | Under $3MM | $2 per $500 |
| Residential | $3MM or Greater | $3.25 per $500 |
| All Other Prop. Types | Under $2MM | $2 per $500 |
| All Other Prop. Types | $2MM or Greater | $3.25 per $500 |
Mansion Tax, Payable by Grantee
| PROPERTY TYPE | CONSIDERATION | TAX RATE |
| Residential | $1MM or Greater but Less Than $2MM | 1% |
| Residential | $2MM or greater but Less Than $3MM | 1.25% |
| Residential | $3MM or Greater but Less Than $5MM | 1.50% |
| Residential | $5MM or Greater but Less Than $10MM | 2.25% |
| Residential | $10MM or Greater but Less Than $15MM | 3.25% |
| Residential | $15MM or Greater but Less Than $20MM | 3.50% |
| Residential | $20MM or Greater but Less Than $25MM | 3.75% |
| Residential | $25MM or Greater | 3.9% |
Notes: Increase affects transactions going into contract on or after 4/1/19 unless proof can be supplied that contract was executed prior to 4/1/19, i.e., proof of deposit of down payment; Continuing lien deduction still applies to New York State Transfer Tax; Residential defined as premises that is or may be improved with a 1-3 family dwelling including condos and coops; Section 1., Subdivision (a) of Section 1402 of the New York State Tax Law, as amended by chapter 170 of the laws of 1994, has been further amended to increase New York State Transfer Tax and Mansion Tax, on the transfer of real property within cities in New York State with a population of one million or greater. Section 2., Subdivision (b) of section 1402-a of the New York State Tax Law, as added by chapter 61 of the laws of 1989, is amended to impose joint and several liability for unpaid Transfer Tax on the grantee and grantor, if the responsible party fails to pay the tax. Section 1402-b has been added and sets forth a sliding scale of Mansion Tax increases, which are dependent upon the total consideration of the transaction.