New York Closing Costs for Buyers: How Much You'll Pay

Transfer tax in New York

See NYC Mortgage Recording Tax under other_buyer_costs, a separate, buyer-paid tax on the mortgage (loan) amount, not the transfer tax.

Who pays: State base transfer tax and NYC RPTT: paid by the seller/grantor by default (may shift to buyer by contract, or if the seller fails to pay or is exempt). The statewide 1% 'mansion tax' (Tax Law §1402-a) and the NYC-specific 'additional base tax' and 'supplemental tax' (imposed since 7/1/2019) are paid by the buyer/grantee by default. Source

Worked example: Statewide (outside NYC) at the $595,900 median price: state transfer tax is about $2,384 (0.4%, computed as $2 per $500 or fractional part, seller-paid); no mansion tax applies because the price is under $1,000,000. In NYC at the same $595,900 price: add NYC RPTT of about $8,492 (1.425% since price is over $500,000, seller-paid) on top of the $2,384 state transfer tax; still no mansion tax (under $1,000,000).

How much is title insurance in New York?

On a $595,900 home in New York, an owner's title policy costs about $2,342 and the lender's policy about $578 when both are issued together (the simultaneous-issue discount). The buyer customarily pays for the owner's policy and the lender's policy. New York uses a filed uniform rate: insurers file one rate schedule with the state, so premiums are the same from company to company and shopping only affects settlement fees. Premiums computed from First American Title Fee Calculator (filed rates), Kings County (Brooklyn), New York, read September 11, 2026.

Who pays the owner's policy: buyer (First American's calculator default allocation for Kings County (Brooklyn); negotiable by contract) Source

Owner's policy on the full $595,900 price and the lender's policy on an 80% loan ($476,720), quoted together so the simultaneous-issue rate applies; First American filed rates for Kings County (Brooklyn).

New York-specific buyer costs on a $595,900 home

These are the line items set by New York law or filed rates. Lender fees, appraisal, escrow and prepaid taxes and insurance come on top and depend on your loan.

Do you need a closing attorney in New York?

Yes. New York has no single statute that says in so many words 'an attorney must attend the closing,' but real estate closings in New York are conducted by attorneys as near-universal, essentially mandatory practice statewide (especially downstate/NYC), because non-attorney title closers and real estate brokers are barred from performing legal tasks (contract drafting/negotiation, title curative work, closing document preparation) under New York's unauthorized-practice-of-law rules. Buyers and sellers each typically retain their own attorney; contracts are customarily attorney-reviewed/negotiated before becoming binding. Source

Other New York specifics

• NYC Mortgage Recording Tax (MRT), buyer-paid. New York State imposes a tax on recording a mortgage (Tax Law Article 11); New York City adds its own local mortgage tax on top. Per the NYS Tax Department's official Form MT-15 rate table (Table 4, New York City counties): for ALL mortgages under $500,000 in NYC, the combined rate is $2.05 per $100 of mortgage debt (2.05%); for a 1-, 2-, or 3-family house or individual residential condo unit with a mortgage of $500,000 or more, the combined rate is $2.175 per $100 (2.175%); for other mortgages of $500,000+, it is $2.80 per $100 (2.80%). By NY Tax Law, the 'special additional tax' component (0.25% / $0.25 per $100) on a mortgage secured by 1-6 family residential real property must legally be paid by the LENDER, not the borrower, this reduces the buyer/borrower's net out-of-pocket NYC MRT to about 1.80% (mortgages under $500,000) or about 1.925% (1-3 family/condo mortgages of $500,000+). WORKED EXAMPLE 1 (illustrative mortgage of $595,900 in NYC, i.e. financing the full median purchase price): total MRT is about $12,959 (2.175% bracket applies since $500,000+); buyer's net share is about $11,468 (1.925%) and the lender pays about $1,490 (0.25%). WORKED EXAMPLE 2 ($1,200,000 mortgage in NYC): total MRT is about $26,100; buyer's net share is about $23,100 (1.925%) and the lender pays about $3,000 (0.25%). Actual buyer cost depends on the real loan amount (typically less than the purchase price after a down payment), not the purchase price itself. Source
• NYC 'mansion tax' worked example at $1,200,000. On a $1,200,000 NYC residential purchase: state base transfer tax is about $4,800 (0.4%, seller-paid); NYC RPTT is about $17,100 (1.425%, seller-paid); the statewide 1% mansion tax (price is $1M-$2M, so only the flat 1% tier applies, no NYC supplemental tax since that starts at $2M) is $12,000 (buyer-paid). Total buyer-paid transfer-tax-family costs: $12,000 (mansion tax) plus the buyer's net MRT share of about $23,100 if financing the full $1,200,000 (see MRT entry above) = about $35,100, before title insurance and recording fees. Source

How much are closing costs in New York?

For a buyer, closing costs usually run 2% to 5% of the purchase price. On New York's median-priced home (about $595,900), that is roughly $11,918 to $29,795, and it is separate from your down payment. The exact figure depends on your lender, your loan, and local taxes.

What closing costs include

Closing costs are a bundle of one-time fees due at settlement: lender or origination fees, an appraisal, title insurance, escrow and settlement fees, recording fees and any New York transfer tax, plus prepaid property taxes and homeowners insurance.

Why New York closing costs vary

The single biggest reason closing costs differ from state to state is transfer taxes, which states and sometimes counties and cities charge on the sale. Title insurance customs and whether an attorney is required at settlement also matter. New York is among the highest-cost states: a state transfer tax, plus in New York City a mortgage recording tax, a mansion tax on higher-priced homes, and customary attorney fees.

How a rebate offsets New York closing costs

Buyer commission rebates are legal in New York. Because a rebate can be paid as a credit at closing, it can erase a meaningful share of these costs. On a $595,900 home, a 2% rebate is about $11,918, often enough to cover much of the closing bill.

See New York buyer rebates and how to get one →

Sources

• New York transfer tax statute
• New York City (all five boroughs) transfer tax
• First American Title Fee Calculator (filed rates), Kings County (Brooklyn), New York, read September 11, 2026
• New York closing attorney rule
• New York City Register / ACRIS (covers Manhattan, Brooklyn, Queens, the Bronx; Staten Island records with the Richmond County Clerk) recording fees
• NYC Mortgage Recording Tax (MRT), buyer-paid
• NYC 'mansion tax' worked example at $1,200,000
• NY Dept. of Taxation and Finance, Mortgage recording tax overview
• Consumer Financial Protection Bureau: buyer closing costs are typically 2% to 5% of the purchase price

New York figures last verified against official sources on September 11, 2026.