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A blog from CityRealty (Links below will take you to the 6sqft site)


Gramercy North Condo model living room (Compass) Gramercy North Condo model living room (Compass)
If you’re selling an NYC property, you’ll likely realize a strong return on your initial investment, but before you start planning how to spend your profits or reinvestment, it is important to consider the substantial closing costs you’ll also incur. In New York City, closing costs not only include brokerage fees but also include transfer taxes. There are generally three different types of transfer taxes that apply to sellers in New York City—the NYC transfer tax known as the Real Property Transfer Tax (RPTT), New York State transfer tax, and in the case of co-ops, an additional flip tax may be levied against you.

NYC transfer taxes


As outlined by the NYC Department of Finance, the Real Property Transfer Tax (RPTT) is applied to sales, grants, assignments, transfers, or surrenders of real estate in New York City whenever 50 percent or more of the ownership is transferred and that transfer is worth $25,000 or more. There are a few exceptions to this rule—for example, the United States Government and its agencies are exempt. In addition, while inherited properties are exempt from the NYC transfer tax, they must still be reported on any RPTT returns. If an inherited property is subsequently sold, however, all transfer taxes still apply.


The amount one pays depends on the value and type of property. In most residential transfers of property (this includes one- to three-family homes, co-ops, and condos), if the value is $500,000 or less, the rate is 1 percent of the sale price. If the value is more than $500,000, the transfer tax rate is 1.425 percent. Other types of property transfers, including multi-unit dwellings have different rates: 1.425 percent for properties worth $500,000 or less and 2.625 percent for those valued at more than $500,000.

New York State transfer taxes


New York City sellers not only pay a local transfer tax but also a statewide tax. As outlined by the New York State Department of Taxation and Finance, a real estate transfer tax is imposed whenever a sale exceeds $500. The tax rate is calculated at a rate of two dollars for each $500, or fractional part thereof. At present, an additional tax of 1 percent of the sale price applies to residences over $1 million or more. But as of July 1, 2019, a new set of guidelines will come into effect. Beginning on July 1, 2019, New York City properties worth over $2 million will be subject to new tax rules and additional transfer taxes. The additional transfer taxes will be paid by the seller.


Notably, these transfer taxes are separate from the mansion tax, which is typically paid by the buyer, and as we comprehensively reported on Market Insight, also currently on the rise. Currently, New York buyers pay a tax of 1 percent on all home purchases of $1 million or more, but soon, homes worth $2 million or more will be subject to a tax of 1.25 percent or higher, depending on the value of the home.

Photo via Pixabay

Flip taxes


This brings us to the final set of taxes one may need to pay when selling a property in New York City. These taxes are generally known as “flip taxes.” Flip taxes can be as high as 20 percent of the sale price of a property, and they generally only apply to co-ops. This reflects the fact that flip taxes are designed to prevent owners from frequently flipping their units—a practice that can have an impact on a building’s culture or demographic.


Flip taxes can be determined in several different ways. First, the flip tax can be calculated as a percentage of the gross sale price (e.g., 5 percent or 15 percent of the sale price). Second, it can be a set dollar amount per co-op share owned. Third, there can be a flat flip tax fee (e.g., $3000). Finally, in some cases, co-ops use a hybrid model (e.g., a combination of a flat fee and amount per share).

What this means for a typical New York City seller


If you’re selling a property in New York City, chances are, you’re going to pay more than you would like to in taxes. Assuming your property is worth more than $500,000, you’ll need to be prepared to pay at least 1.425 percent in local transfer taxes, $2 on every $500 in state taxes, and if the unit is a co-op, you’ll likely also face a flip tax, which may range from a nominal fee of $500 to as much as 20 percent of the value of the unit. In the end, this combination of taxes can and often does eat into one’s return on investment. This is one reason why in New York City, renting remains more affordable than buying unless you plan to hold your property for at least 12 years. At that point, even with the city’s high transfer taxes, you’re statically likely to yield a high return on your investment.

Seller will pay first year of common charges and taxes! This 1,143 square feet, 2-Bed, 2.5-Bath duplexed condo with a home office and two terraces is simply everything. Designed to be a seamless hybrid of Minimarisuto Design [Japanese minimalism] and Scandinavian Design, this home is truly the epitome of modern living and provokes style and function. Simplicity sits at the heart of this home's design, with a focus on natural materials, clean lines, and light. It is dramatic and cozy all at the same time, and extremely inspiring. Full listing here.

Bright amd spacious 2-BED/2-BATH Apt. with elegant finishes and magnificent views over City Hall and Brooklyn Bridge/Park. Floor-to-ceiling windows provide sunny exposures to the South and East." Full listing here.

This home features; high ceilings, 5-inch hardwood floors throughout, and oversize windows. Chef's open kitchen with Top-of-line appliances include Miele Dishwasher, Bertazzoni Stove and vented hood, Liebrierr Refrigerator, Garbage disposal, and marble premium countertops. The spacious sunny Living room with floor to ceiling windows and a large balcony (7 X 14) is perfect for entertaining family and friends with open southern views onto brownstone gardens. Full listing here.

Conrad COndo
This gorgeous one bedroom Penthouse can be delivered furnished as well Northern exposure Floor-to-ceiling windows Lots of natural light Open kitchen concept with Stainless steel appliances Washer and dryer in the unit Walk-in closet Gym Roof deck Outdoor Recreation area Virtual doorman Full listing here.

The Gramercy North raises the bar for urban living, new construction, and chic design, offering a limited collection of 14 full floor condominium residences at the nexus of downtown Manhattan. Interiors are soothing and timeless with an Italian edge, customized by designer Stefano Pasqualetti. Residents of this unparalleled enclave enjoy virtual doorman service, a secure package room, bike room and an intimate landscaped rooftop with striking views. Arrive via private elevator to this floor-through 1,535 square foot two-bedroom, two-bathroom showplace, illuminated by oversized windows and designer light fixtures. Full listing here.

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Contributing Writer Cait Etherington Cait Etherington has over twenty years of experience working as a journalist and communications consultant. Her articles and reviews have been published in newspapers and magazines across the United States and internationally. An experienced financial writer, Cait is committed to exposing the human side of stories about contemporary business, banking and workplace relations. She also enjoys writing about trends, lifestyles and real estate in New York City where she lives with her family in a cozy apartment on the twentieth floor of a Manhattan high rise.