NYC Transfer Taxes For Nolita Sellers: An Overview

Are transfer taxes going to surprise you at closing? If you are selling a Nolita condo or co-op, the city and state can take a bigger bite than you expect. You want a clear, simple way to see what applies, how much to budget, and when to lock the numbers. This guide gives you a plain‑English overview tailored to Nolita sellers, with quick math at common price points and practical steps to protect your net. Let’s dive in.

What counts as transfer taxes in Nolita

When you sell a Nolita condo or co-op, three primary levies may apply. Together, they often land between roughly 1.5% and 3% of the sale price, depending on whether your price crosses $1 million.

NYC Real Property Transfer Tax (RPTT)

• Residential rate structure most sellers see:
  • 1.00% on consideration up to and including $500,000.
  • 1.425% on consideration over $500,000.
• NYC applies a single rate to the full sale price based on which bracket your price falls into. There is no marginal ladder.
• It applies to condominiums and to co-op share transfers that change beneficial ownership.
• The tax is due when the deed or co-op transfer documents are recorded with the city.

NYS Real Estate Transfer Tax (RETT)

• Rate: 0.4% of the sale price.
• Applies to most real property transfers and to co-op share transfers.
• Paid at closing when transfer documents are filed.

NYS “Mansion Tax”

• Rate: 1.0% for residential transfers at $1,000,000 or more.
• Collected in addition to the NYC and NYS transfer taxes.
• Historically collected from the buyer, but it can be negotiated in the contract.

Who typically pays what in Manhattan resales

Allocation is a contract term. Market practice guides expectations, but the purchase agreement controls the outcome.

• In many Manhattan resales, buyers commonly pay the NYS mansion tax and the NYS RETT. Allocation of NYC RPTT varies by deal and market conditions and is negotiated in the contract.
• Sellers typically cover broker commissions and may share or allocate other costs by agreement.
• In co-ops, boards can impose building transfer fees or flip taxes. These are building specific and paid by the seller or buyer depending on board rules and your contract.

Bottom line: never assume. Confirm allocation in writing before you sign.

Quick math for common Nolita price points

Use these examples to estimate your transfer-tax exposure. Amounts reflect the rates above.

Example A: $750,000 sale price

• NYC RPTT at 1.425%: $10,687.50
• NYS RETT at 0.4%: $3,000.00
• NYS mansion tax: none (price under $1,000,000)
• Total transfer taxes: about $13,687.50 (roughly 1.82% of price)

Example B: $1,200,000 sale price

• NYC RPTT at 1.425%: $17,100.00
• NYS RETT at 0.4%: $4,800.00
• NYS mansion tax at 1%: $12,000.00
• Total transfer taxes: about $33,900.00 (roughly 2.83% of price)

Example C: $3,000,000 sale price

• NYC RPTT at 1.425%: $42,750.00
• NYS RETT at 0.4%: $12,000.00
• NYS mansion tax at 1%: $30,000.00
• Total transfer taxes: about $84,750.00 (roughly 2.82% of price)

What this means for you: on sales at or above $1 million, the mansion tax becomes a major line item. The NYC RPTT is also a meaningful percentage cost at Nolita price points because the 1.425% rate applies when your price is over $500,000.

Special situations and exemptions

A few transfers can be exempt or partially exempt, such as certain transfers between spouses or from parent to child, transfers to government entities, or specific court-ordered transfers. These require formal documentation and are not automatic. Co-op share transfers are treated differently in form, but they generally trigger the same NYC and NYS transfer taxes when there is a change in beneficial ownership.

If your situation involves an estate, trust, partnership, corporation, or an intra-entity reorganization, there may be technical rules that change the filing or liability. Have your attorney verify any exemption or special structure early.

Sponsor deals versus resales

If you are selling directly as a sponsor, cost allocations are part of the offering terms and purchase contract. Practice varies. In some sponsor deals, purchasers expect to pay the mansion tax and the NYS RETT. In other offerings, the sponsor may agree to absorb certain transfer taxes or offer concessions. The specific allocation is disclosed in the offering plan and negotiated in the purchase contract.

For owner-to-owner resales, the contract sets the split. Many Manhattan resales place the mansion tax and state transfer tax on the buyer. Allocation of the city RPTT can vary and is negotiated. Always confirm the draft contract reflects what you intend before you sign.

Your action plan to protect net proceeds

Follow these steps to reduce surprises and keep your closing on track.

• Request a preliminary net-proceeds statement. Ask your listing broker or attorney for a seller net sheet early. It should show your price, broker commission, estimated NYC RPTT, NYS RETT, any mansion tax allocation, building flip taxes, unpaid common charges or assessments to be prorated, and estimated legal or closing fees.
• Confirm allocation in the contract. Ask your attorney to itemize who pays each transfer tax in the purchase agreement. If anything is ambiguous, clarify before you ratify the contract.
• Check building-specific fees. Co-ops and some condos impose flip taxes or transfer fees. Verify the fee, who pays it, and how it is calculated.
• Coordinate funds and timing. Transfer taxes are remitted at closing when the deed or co-op documents are filed. Confirm wiring instructions and whether any funds will be held in escrow until liens or clearances are released.
• Consult your tax adviser on income taxes. Capital gains, depreciation recapture, or a 1031 exchange for investment property are separate from transfer taxes. Coordinate early to avoid timing conflicts.

Co-op sellers: practical notes

Co-op mechanics differ from condos, but the tax result is similar when ownership changes. NYC RPTT and NYS RETT generally apply to co-op share transfers, and the mansion tax can apply based on price. Your board may also have a flip tax or transfer fee with its own calculation method. Ask for the formula and an estimate before you list so you can price and negotiate with full information.

When you will know your exact net

Once your contract is signed, ask your attorney or the closing agent for a draft closing statement. This draft will show estimated transfer taxes, prorations, and fees based on the contract and the building. The final, itemized statement will be delivered at closing. Review both carefully so you know your exact take-home amount before funds move.

Selling in Nolita is about precision. When you understand which taxes apply, how they are allocated, and what they cost at your price point, you can negotiate with confidence and protect your proceeds. If you want a tailored net sheet and guidance on allocation strategy, connect with Charlar Acar. Get Access To Our Private Listings and a clear plan to close.

FAQs

What are NYC transfer taxes for a Nolita condo or co-op sale?

• Three main levies may apply: NYC Real Property Transfer Tax, NYS Real Estate Transfer Tax at 0.4%, and the NYS mansion tax at 1% for prices at or above $1,000,000.

Who typically pays transfer taxes in a Manhattan resale contract?

• Allocation is negotiated, but buyers commonly pay the NYS mansion tax and NYS RETT in resales; NYC RPTT allocation varies and should be confirmed in the contract.

Do co-op share transfers in Nolita owe the same taxes as condos?

• Yes in effect; co-op share transfers that change beneficial ownership generally trigger the same NYC and NYS transfer taxes, though mechanics differ and boards may add a flip tax.

How can I estimate transfer taxes on a $1.2 million Nolita sale?

• Use 1.425% for NYC RPTT, 0.4% for NYS RETT, and 1% for the mansion tax; at $1.2 million the total is about $33,900 or roughly 2.83% of the price.

Can a seller reduce transfer taxes in Nolita?

• Statutory rates do not change, but you can negotiate allocation in the contract or explore exemptions and structures with counsel; investors may also evaluate 1031 exchanges.

When are transfer taxes paid at a Nolita closing?

• Transfer taxes are remitted at closing when the deed or co-op transfer documents are recorded, usually through your closing attorney or title company.