Selling a house in New York City comes with costs that surprise many first time sellers, starting with two transfer taxes that together can reach about 2% of the price. This guide walks through the main seller costs in 2026 for a one to three family house in Brooklyn or Manhattan, with simple examples. Rates and rules change, so confirm everything with your attorney and tax professional before you sign.
1. NYC Real Property Transfer Tax
In most sales, the seller pays the city’s Real Property Transfer Tax. For a one to three family house, the rate is 1% if the price is $500,000 or less and 1.425% if it is more than $500,000, applied to the full price. The NYC Department of Finance publishes the current rates.
2. New York State Transfer Tax
The seller also usually pays the state transfer tax: 0.4% of the price, rising to 0.65% for residential sales of $3 million or more in New York City. See the NYS Department of Taxation and Finance. The separate “mansion tax” on sales of $1 million or more is normally paid by the buyer.
Two Examples
| Item | $1,600,000 sale | $3,500,000 sale |
|---|---|---|
| NYC Real Property Transfer Tax (1.425%) | $22,800 | $49,875 |
| NYS Real Estate Transfer Tax (0.4% / 0.65%) | $6,400 | $22,750 |
| Total transfer taxes | $29,200 | $72,625 |
These examples cover transfer taxes only. Your contract can shift who pays what, so read it with your attorney.
3. Other Common Seller Costs
- Your attorney. In New York, a real estate attorney normally handles the contract and closing for each side. Fees vary, so ask for a quote up front.
- Broker commission. Commission is negotiable and is set in your written listing agreement.
- Mortgage payoff and recording. Your lender is paid off at closing, plus fees to record the satisfaction of the mortgage.
- Open items. Unpaid water bills, property taxes, liens, or violations may need to be cleared or held in escrow. See selling with open permits or violations.
- Moving and preparation. Repairs, cleaning, staging and moving costs. See staging tips.
4. Taxes on Your Gain
If the house was your main home, federal law may let you exclude up to $250,000 of gain, or $500,000 for a married couple filing jointly, if you meet the ownership and use tests. IRS Publication 523 explains the rules. Investment properties follow different rules, which our 1031 exchange guide touches on. Sellers who do not live in New York State may also have an estimated tax payment due at closing. Ask a tax professional about your situation.
Plan Your Net Number Early
Before you list, ask for a simple net sheet: expected price, minus transfer taxes, payoff, fees and commission. Knowing your net helps you decide on pricing and whether to sell first or buy first.
Photos in this article are illustrative images from the 555 Properties LLC library unless a caption names a specific property.
Talk With Valerie
Valerie Sebbag, Licensed Real Estate Broker at 555 Properties LLC, has more than 30 years of client-facing experience and more than 12 years in real estate. If you are thinking about selling, request a private, no-cost valuation or read about our seller services. You can also see our closed sales.
