Free tool
NYC transfer tax calculator for commercial property
Selling or buying a commercial property in New York City? Enter the price to see the city and state transfer taxes, what the seller keeps and, if the buyer finances, the mortgage recording tax, with the math shown line by line.
Transfer taxes
$98,250
3.3% of the price: $78,750 to the city, $19,500 to the state.
Paid by the seller unless the contract shifts them to the buyer.
| City transfer tax (RPTT)2.625% of the whole price, over $500,000 | $78,750 |
|---|---|
| State transfer tax (RETT)$2 per $500, 0.4% | $12,000 |
| Additional state tax$1.25 per $500 at $2 million or more | $7,500 |
| Transfer taxes | $98,250 |
| Price less transfer taxes | $2,901,750 |
An estimate from the published city and state rates, not tax or legal advice. It leaves out entity transfers, exemptions and reduced rates. Confirm the numbers with your attorney before you sign a contract.
How the taxes are figured
- The price. Both taxes are charged on the consideration: the price paid, including any existing mortgage the buyer takes over.
- City transfer tax. 1.425% of the price at $500,000 or less, 2.625% when it is more than $500,000. The higher rate applies to the whole price.
- State transfer tax. $2 for every $500 of the price, or part of $500 (0.4%). In New York City, a commercial sale of $2,000,000 or more adds $1.25 per $500, for 0.65% of the whole price.
- Who pays. The seller, unless the contract says otherwise. Both taxes are usually paid at closing.
- Financing. A buyer who borrows pays the mortgage recording tax on the loan: 2.05% under $500,000, 2.8% at $500,000 or more.
Sources: NYC Department of Finance, Real Property Transfer Tax; New York State Department of Taxation and Finance, real estate transfer tax; NYC Department of Finance, Mortgage Recording Tax, checked September 2026. The calculator uses the commercial rates for a straight sale. It does not model entity transfers, exemptions or reduced rates, and it is not tax or legal advice: confirm with your attorney.
What it costs at common prices
City and state transfer taxes on a commercial sale in New York City.
| Price | City | State | Total | Share |
|---|---|---|---|---|
| $400,000 | $5,700 | $1,600 | $7,300 | 1.8% |
| $500,000 | $7,125 | $2,000 | $9,125 | 1.8% |
| $750,000 | $19,688 | $3,000 | $22,688 | 3.0% |
| $1,000,000 | $26,250 | $4,000 | $30,250 | 3.0% |
| $1,500,000 | $39,375 | $6,000 | $45,375 | 3.0% |
| $2,000,000 | $52,500 | $13,000 | $65,500 | 3.3% |
| $3,000,000 | $78,750 | $19,500 | $98,250 | 3.3% |
| $5,000,000 | $131,250 | $32,500 | $163,750 | 3.3% |
| $10,000,000 | $262,500 | $65,000 | $327,500 | 3.3% |
| $25,000,000 | $656,250 | $162,500 | $818,750 | 3.3% |
The two cliffs
Both higher rates apply to the whole price, so crossing a line costs more than the extra price brings in, for a while.
$500,000: the city rate
At $500,000 the city tax is $7,125. One dollar more and it is $13,125, because 2.625% now applies to the whole price. The seller keeps less than at $500,000 until the price reaches about $506,189.
$2,000,000: the state rate
At $1,999,999 the state tax is $8,000. At $2,000,000 it is $13,000, because the additional 0.25% applies to the whole price. The seller keeps less than just under $2,000,000 until the price reaches about $2,005,171.
Worth knowing when you price a property near a line or negotiate the last few thousand dollars. Who pays the taxes is part of the same negotiation.
Questions
How much is the transfer tax on commercial property in NYC?
Two taxes apply. The city's Real Property Transfer Tax is 1.425% of the price at $500,000 or less and 2.625% above $500,000. The state's Real Estate Transfer Tax is 0.4%, rising to 0.65% for a commercial sale of $2 million or more. Together that is about 3.0% of a $1,500,000 sale ($45,375) and 3.3% of a $5,000,000 sale ($163,750).
Who pays the transfer tax in a NYC commercial sale?
The seller, by default, for both the city and the state tax. The contract can shift them to the buyer, and if the seller does not pay or is exempt, the buyer becomes responsible. They are usually paid at closing through the title company.
Does the 2.625% city rate apply to the whole price?
Yes. Once the price is more than $500,000, 2.625% applies to the entire price, not just the part above the line: a sale at $500,000 owes $7,125 in city tax and a sale one dollar higher owes $13,125. The state's additional tax works the same way at $2,000,000. Just above each line the seller nets less than just below it, until about $506,189 and $2,005,171.
Does the mansion tax apply to commercial property?
No. New York State's mansion tax of 1% or more is paid by buyers of residential property for $1 million or more. It does not apply to office buildings, stores, warehouses, development sites or other commercial property.
What is the mortgage recording tax on a commercial loan in NYC?
A buyer who finances pays the mortgage recording tax when the loan is recorded. For commercial property in New York City the combined city and state rate is 2.05% on a loan under $500,000 and 2.8% on a loan of $500,000 or more, on the whole amount: $98,000 on a $3,500,000 loan. Taking over the seller's loan with a CEMA limits the tax to the new money borrowed.
Is selling an LLC that owns the building taxed too?
Generally yes. Transferring a controlling interest (usually 50% or more) in an entity that owns New York real estate is taxed much like a deed transfer. A ground lease or other lease of 49 years or more, counting renewal options, can also be taxed. Get specific advice for these; the calculator covers a straight sale.
Are the transfer taxes different for a residential sale?
Yes. A one to three family house, an individual residential condo unit or a co-op apartment pays lower city rates and different state rules, and residential buyers can owe the mansion tax. This calculator uses the commercial rates, which cover everything else, including apartment buildings and mixed-use properties.