Free tool
NYC mortgage recording tax calculator for commercial loans
Financing or refinancing an office building, a store, a warehouse or an apartment building in New York City? Enter the loan to see the city and state mortgage recording tax line by line and, if you consolidate an existing mortgage, what a CEMA saves.
Mortgage recording tax
$56,000
2.8% of a $2,000,000 loan: $35,000 to the city, $21,000 to the state.
Paid by the borrower when the mortgage is recorded, usually at closing.
| City tax$1.75 per $100, $500,000 or more | $35,000 |
|---|---|
| State basic tax50 cents per $100 | $10,000 |
| State special additional tax25 cents per $100 | $5,000 |
| State additional tax (MCTD)30 cents per $100 | $6,000 |
| Mortgage recording tax | $56,000 |
An estimate from the published city and state rates, not tax or legal advice. It leaves out exemptions, residential rates and the fees for recording and assigning a mortgage. Confirm the numbers with your attorney or title company.
How the tax is figured
- The debt. The tax is charged on the principal the mortgage secures, in steps of $100. A remainder over $50 counts as a full $100.
- City tax. $1.00 per $100 when the loan is under $500,000, $1.75 per $100 when it is $500,000 or more. The higher rate applies to the whole loan.
- State taxes. A basic tax of 50 cents, a special additional tax of 25 cents and, because all of New York City is in the Metropolitan Commuter Transportation District, an additional tax of 30 cents: $1.05 per $100 at any loan size.
- Together. 2.05% under $500,000, 2.8% at $500,000 or more. The borrower usually pays it at the closing.
- CEMA. When an existing mortgage whose tax was paid is consolidated into the new loan, only the new money is taxed.
Sources: New York State Tax Law section 253 (the state taxes); New York State Tax Law section 255 (supplemental mortgages and CEMAs); NYS Tax Department advisory opinion TSB-A-13(3)R, quoting the city rates in Administrative Code section 11-2601.d; NYC Department of Finance, Mortgage Recording Tax, checked October 2026. The calculator uses the commercial rates. It does not model exemptions or residential rates, and it is not tax or legal advice: confirm with your attorney or title company.
What it costs at common loan sizes
City and state mortgage recording tax on a commercial loan in New York City.
| Loan | City | State | Total | Rate |
|---|---|---|---|---|
| $250,000 | $2,500 | $2,625 | $5,125 | 2.05% |
| $499,999 | $5,000 | $5,250 | $10,250 | 2.05% |
| $500,000 | $8,750 | $5,250 | $14,000 | 2.8% |
| $1,000,000 | $17,500 | $10,500 | $28,000 | 2.8% |
| $2,000,000 | $35,000 | $21,000 | $56,000 | 2.8% |
| $3,500,000 | $61,250 | $36,750 | $98,000 | 2.8% |
| $5,000,000 | $87,500 | $52,500 | $140,000 | 2.8% |
| $10,000,000 | $175,000 | $105,000 | $280,000 | 2.8% |
| $25,000,000 | $437,500 | $262,500 | $700,000 | 2.8% |
The $500,000 line and the CEMA
The two things that move the tax most on a commercial loan.
$500,000: the city rate
A loan of $499,999 pays $10,250. A loan of $500,000 pays $14,000, because the city's $1.75 rate now applies to every dollar. Near the line, borrowing a little less can save more than it costs.
A CEMA on a purchase
A buyer borrows $6,000,000 and the seller's lender assigns its $4,000,000 balance. Only the $2,000,000 of new money is taxed: $56,000 instead of $168,000, a saving of $112,000. Run this example.
A CEMA needs the existing lender to agree to assign its mortgage, and the assignment carries its own fees and legal work. Ask early: the seller's lender and the new lender both have to sign on before the closing.
Questions
How much is the mortgage recording tax on a commercial loan in NYC?
The city and state taxes together are 2.05% of a loan under $500,000 and 2.8% of a loan of $500,000 or more. That is $28,000 on a $1,000,000 loan and $140,000 on a $5,000,000 loan. The state's share is $1.05 per $100 at any size; the city's is $1.00 per $100 under $500,000 and $1.75 per $100 at $500,000 or more.
Who pays the mortgage recording tax on a commercial loan?
The borrower, in practice: lenders expect it as a closing cost. The law makes the lender pay one part, the 0.25% special additional tax, only on property improved by six or fewer homes (unless the lender is a person or a credit union). So on a building with four to six apartments the lender owes that quarter point, and on an office building, a store, a warehouse or a larger apartment building the borrower usually pays all of it.
Does the 2.8% rate apply to the whole loan?
Yes. The city rate is set by the size of the whole loan, so a loan of $500,000 pays 2.8% on every dollar: $14,000, against $10,250 on a loan of $499,999. One more dollar of debt costs $3,750 more in tax.
What is a CEMA and how much can it save?
A CEMA (consolidation, extension and modification agreement) folds an existing mortgage, whose tax was already paid, into the new loan. Under section 255 of the Tax Law only the new money is taxed. If a buyer borrows $6,000,000 and the seller's lender assigns its $4,000,000 balance, the tax falls from $168,000 to $56,000, a saving of $112,000. It needs the existing lender to cooperate and adds assignment fees and legal work, so it pays off mainly on larger loans.
Is a commercial refinance taxed?
Yes. A new mortgage is taxed on its whole principal, even when it pays off an old one. To avoid paying again on the balance you still owe, the new lender can take an assignment of the old mortgage and consolidate it in a CEMA, so only the cash-out or other new money is taxed.
What are the rates for houses, condos and co-ops?
A one to three family house or an individual residential condo unit pays 2.05% under $500,000 and 2.175% at $500,000 or more (the city part is $1.125 per $100), and the lender usually pays 0.25% of it. Co-op loans are secured by shares, not real property, so no mortgage recording tax applies. This calculator uses the commercial rates, which cover everything else, including apartment buildings of four or more units and mixed-use buildings.
When and how is the mortgage recording tax paid?
When the mortgage is recorded, which is usually at the closing. The title company collects it and records the mortgage with the City Register (the Department of Finance) through ACRIS, the city's property records system, along with a mortgage recording tax return.