On a typical Brooklyn home sale, the seller pays two transfer taxes — the NYC Real Property Transfer Tax (RPTT) and the New York State Transfer Tax — that together come to roughly 1.825% of the sale price on a home over $500,000. The buyer pays the New York State Mansion Tax, a separate progressive tax that begins at 1.0% on any purchase of $1,000,000 or more. So on a $1.1 million Brooklyn brownstone or condo, the seller owes about $20,075 in transfer taxes and the buyer owes $11,000 in mansion tax. These are the headline numbers — below, this guide breaks down each tax, shows exactly who pays what, and walks through a full worked example so you can budget your closing with no surprises.
> Rates current as of 2026. Tax rates and brackets change. Confirm the figures that apply to your specific transaction with a New York real estate attorney and a CPA before you sign anything.
The Three Taxes on a Brooklyn Real Estate Transfer
Every standard residential sale in Brooklyn can trigger up to three separate conveyance taxes. They are calculated on the gross sale price, not on your profit or equity — meaning you can owe them even on a break-even sale.
1. NYC Real Property Transfer Tax (RPTT)
The RPTT is a New York City tax on the transfer of real property within the five boroughs. For residential property — one-, two-, and three-family homes, individual condominium units, and co-op apartments — the rate depends on price:
- 1.0% of the consideration when the price is $500,000 or less
- 1.425% of the consideration when the price is more than $500,000
The full rate applies to the entire price, not just the portion above $500,000. Higher RPTT rates (1.425% and 2.625%) apply to commercial property and to residential buildings with four or more units; those are outside the scope of this buyer/seller guide. By NYC convention, the seller pays the RPTT.
2. New York State Transfer Tax
New York State also imposes a transfer tax — sometimes called the “documentary” or “conveyance” tax — on real estate transfers statewide:
- 0.4% of the price, calculated at $2 for every $500 (or fraction thereof) of consideration
- The rate rises to 0.65% for residential transfers where the price is $3 million or more
Like the RPTT, the New York State Transfer Tax is conventionally paid by the seller.
3. New York State Mansion Tax
The Mansion Tax is a New York State tax paid by the buyer on residential purchases of $1,000,000 or more. Despite the name, it has nothing to do with mansions — in Brooklyn’s market, a great many ordinary brownstones, townhouses, and two-bedroom condos cross the $1 million line and trigger it.
Since 2019, the Mansion Tax has been progressive, climbing through a series of brackets as the purchase price rises. Important: the bracket rate applies to the entire purchase price, not just the slice within that bracket. A $2,000,000 purchase is taxed at the 1.25% rate on the whole $2,000,000.
Mansion Tax Bracket Table (2026)
| Purchase Price | Mansion Tax Rate | Tax on a Purchase at the Bottom of the Bracket |
|---|---|---|
| $1,000,000 – $1,999,999 | 1.00% | $10,000 |
| $2,000,000 – $2,999,999 | 1.25% | $25,000 |
| $3,000,000 – $4,999,999 | 1.50% | $45,000 |
| $5,000,000 – $9,999,999 | 2.25% | $112,500 |
| $10,000,000 – $14,999,999 | 3.25% | $325,000 |
| $15,000,000 – $19,999,999 | 3.50% | $525,000 |
| $20,000,000 – $24,999,999 | 3.75% | $750,000 |
| $25,000,000 and above | 3.90% | $975,000 |
Purchases under $1,000,000 owe no Mansion Tax at all — which is why the difference between a $999,000 and a $1,000,000 contract price is far more than $1,000 to a buyer.
Who Pays What: Buyer vs. Seller
Under standard New York City practice, the obligations split cleanly between the two sides. The table below summarizes a typical resale of a Brooklyn 1–3 family home, condo, or co-op.
| Tax | Standard 2026 Rate | Who Pays (by convention) |
|---|---|---|
| NYC Real Property Transfer Tax (RPTT) | 1.0% (price ≤ $500K); 1.425% (price > $500K) | Seller |
| New York State Transfer Tax | 0.4% (under $3M); 0.65% (residential, $3M+) | Seller |
| New York State Mansion Tax | 1.0%–3.9% progressive (purchases $1M+) | Buyer |
The new-development exception
There is one major exception that catches buyers off guard. In new-development and sponsor sales — buying directly from a developer in a newly built or newly converted condo — the purchase agreement frequently shifts the transfer taxes to the buyer. In that scenario, the buyer can end up paying the RPTT and the State Transfer Tax and the Mansion Tax. Always have your attorney read the sponsor’s contract carefully; this single clause can add tens of thousands of dollars to a new-construction closing.
Worked Example: A $1.1M Brooklyn Brownstone or Condo
Consider a Brooklyn buyer and seller agreeing on a $1,100,000 purchase price for a resale two-family brownstone or a condominium — a realistic mid-market figure in neighborhoods like Bedford-Stuyvesant, Crown Heights, Ditmas Park, or Sunset Park.
What the SELLER owes:
- NYC RPTT: The price is above $500,000, so the rate is 1.425%. → $1,100,000 × 0.01425 = $15,675
- NY State Transfer Tax: The price is under $3M, so the rate is 0.4%. → $1,100,000 × 0.004 = $4,400
- Total transfer taxes for the seller: $20,075
What the BUYER owes:
- NY State Mansion Tax: The price falls in the $1,000,000–$1,999,999 bracket, taxed at 1.0%. → $1,100,000 × 0.01 = $11,000
- Total mansion tax for the buyer: $11,000
On this $1.1M deal, conveyance taxes alone move $31,075 to the government — split roughly $20K from the seller and $11K from the buyer. These figures are only the transfer/mansion taxes. They do not include other closing costs such as attorney fees, title insurance (buyer), mortgage recording tax (buyer, on financed purchases), broker commission (typically seller), or co-op flip taxes where applicable. Budget for the full picture, not just the transfer taxes.
A quick contrast — staying under $1M
If the same parties had instead closed at $999,000, the buyer would owe $0 in Mansion Tax instead of $11,000 (the threshold is $1,000,000). The seller’s transfer taxes would drop only slightly — to about $18,232. This “cliff” at $1,000,000 is why pricing and negotiation around that threshold matter so much in Brooklyn.
How and When These Taxes Are Paid
- All three taxes are settled at closing. Your attorney and the title company handle the filings and remittance from the closing proceeds.
- The RPTT and State Transfer Tax are reported on NYC Form NYC-RPT and the New York State TP-584 form, filed with the deed.
- The Mansion Tax is reported on the same TP-584 and is collected from the buyer.
- Sellers should expect the transfer taxes to be deducted from their net proceeds; buyers should have the Mansion Tax in cash at closing, as lenders generally will not finance it.
Disclaimer
This article is general information, not legal or tax advice. Transfer tax and Mansion Tax rules contain exceptions, exemptions, and definitions that depend on the specific property type, transaction structure, and parties involved — and rates and brackets are subject to change. Before you buy or sell, consult a licensed New York real estate attorney and a CPA to confirm exactly what applies to your transaction.
Frequently Asked Questions
1. Who pays the mansion tax in a Brooklyn home sale — the buyer or the seller?
The buyer pays the New York State Mansion Tax. It applies to residential purchases of $1,000,000 or more and is collected at closing. The one common exception is a new-development or sponsor sale, where the contract may shift the transfer taxes — and sometimes effectively the cost of the mansion tax — onto the buyer.
2. Does the mansion tax apply to a $1 million Brooklyn brownstone?
Yes. The Mansion Tax kicks in at exactly $1,000,000. A purchase at $1,000,000 is taxed at 1.0%, which is $10,000. A purchase one dollar lower, at $999,999, owes nothing — the threshold creates a hard cliff, so the price relative to $1M matters a great deal.
3. How much is the NYC transfer tax on a Brooklyn home over $500,000?
The NYC Real Property Transfer Tax is 1.425% of the full sale price for residential property priced above $500,000 (it is 1.0% at or below $500,000). On top of that, the seller also pays the New York State Transfer Tax of 0.4%, for a combined seller transfer-tax burden of about 1.825%.
4. Can the buyer and seller negotiate who pays the transfer taxes?
Yes — these conventions are customary, not legally fixed. In standard Brooklyn resales the seller pays the RPTT and State Transfer Tax and the buyer pays the Mansion Tax, but the purchase contract controls. New-development sponsor sales routinely shift the transfer taxes to the buyer. Have your attorney review every transfer-tax clause before you sign.
5. Are transfer taxes calculated on my profit or on the full sale price?
On the full gross sale price (the “consideration”), not on your gain or equity. You can owe transfer taxes even if you sell at a loss or break even. This is one reason it is critical to model these costs into your net-proceeds estimate before listing.
Talk to an Own a Piece of Brooklyn Agent
Transfer taxes and the Mansion Tax can swing a Brooklyn closing by tens of thousands of dollars — and the right pricing and negotiation strategy can make a real difference. An Own a Piece of Brooklyn agent can help you estimate your true net proceeds as a seller, or your full cash-to-close as a buyer, and connect you with experienced local real estate attorneys. Reach out to an Own a Piece of Brooklyn agent to plan your next move with clear numbers in hand.