NYC Mortgage Recording Tax: Rates, Who Pays, and How to Reduce It
What is the NYC mortgage recording tax?
The NYC mortgage recording tax is 2.05% of the loan amount under $500,000 and 2.175% at $500,000 or more, charged whenever a mortgage on real property is recorded in New York City. Lenders customarily pay 0.25 points of it, so buyers typically pay 1.80% or 1.925% — one of the largest and least-expected closing costs for condo and house buyers. Co-op loans are exempt.
The rates in detail
| Loan amount (1–3 family residential) | Total rate | Borrower typically pays |
|---|---|---|
| Under $500,000 | 2.05% | 1.80% |
| $500,000 or more | 2.175% | 1.925% |
The lender customarily pays 0.25 percentage points of the total, leaving the borrower with the rest. On an $800,000 condo bought with 20% down, the $640,000 loan triggers about $12,320 of recording tax at closing.
Is it 1.8% or 1.925%? The $500,000 cliff, in dollars
The higher rate applies to the whole loan the moment it reaches $500,000 — not just the excess:
| Loan amount | Borrower rate | Recording tax |
|---|---|---|
| $250,000 | 1.80% | $4,500 |
| $499,999 | 1.80% | $9,000 |
| $500,000 | 1.925% | $9,625 |
| $1,000,000 | 1.925% | $19,250 |
Crossing the line costs about $625 extra on the same $500,000 — if you’re near it, a slightly larger down payment that keeps the loan at $499,999 pays for itself immediately.
Co-ops are exempt
Buying a co-op? There is no mortgage recording tax. A co-op loan is secured by shares in the co-op corporation rather than by real property, so nothing is recorded against a deed. On large loans this single difference can save five figures, and it’s part of why co-op closing costs run far below condo closing costs in NYC.
How to pay less
- CEMA (purchase or refinance) — a Consolidation, Extension and Modification Agreement lets you take over the seller’s existing mortgage on paper and pay recording tax only on the new money above its balance. Both sides must cooperate and lenders charge CEMA fees, so it pays off mostly on larger loans — the CEMA savings calculator shows your exact break-even.
- Refinancing? Always ask for a CEMA — otherwise you pay the full tax again on the entire new loan.
- Near the $500k line? A slightly larger down payment that keeps the loan under $500,000 also keeps the borrower rate at 1.80% instead of 1.925%.
- Buy a co-op — exempt entirely, as above.
Don’t confuse it with the mansion tax
The mansion tax is a separate buyer-paid tax on the purchase price (not the loan) when it reaches $1 million:
| Purchase price | Mansion tax |
|---|---|
| $1M – under $2M | 1.00% |
| $2M – under $3M | 1.25% |
| $3M – under $5M | 1.50% |
| $5M – under $10M | 2.25% |
| $10M – under $15M | 3.25% |
| $15M – under $20M | 3.50% |
| $20M – under $25M | 3.75% |
| $25M and up | 3.90% |
Compute yours with the mansion tax calculator, or see every buyer line item at once in the buyer closing-costs calculator. Sellers, meanwhile, typically pay the NYC and NYS transfer taxes (roughly 1.4%–2% combined on most sales).
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Frequently asked questions
How much is the mortgage recording tax in NYC?
For one- to three-family residential property, the total is 2.05% of the loan amount under $500,000 and 2.175% at $500,000 or more. Lenders customarily cover 0.25%, so borrowers typically pay 1.80% or 1.925%.
Do co-op buyers pay mortgage recording tax?
No. Co-op loans are secured by shares in the co-op corporation, not by real property, so no mortgage is recorded and no recording tax is due.
What is a CEMA loan?
A Consolidation, Extension and Modification Agreement assigns an existing mortgage to your new lender so recording tax is paid only on new money above the old balance. It requires cooperation from the other party and lender fees, so it makes the most sense on larger loans.
Is the mansion tax the same as the recording tax?
No. The mansion tax is a buyer-paid tax of 1% to 3.9% on the purchase price when it is $1 million or more, regardless of financing. The recording tax applies to the mortgage amount.
Is the mortgage recording tax deductible?
Not as a tax deduction — the IRS treats it as a cost of acquiring the property, not deductible property tax or interest. It is added to your cost basis, which reduces taxable capital gains when you eventually sell.
When is the mortgage recording tax paid?
At closing. The title company collects it with your other closing costs and pays it when the mortgage is recorded with the city register — it cannot be rolled into the loan.
Figures computed from official NYC Department of Finance and NYC Open Data records, refreshed automatically — see how BlockBook sources its data. Spot an error? Tell us.
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Informational only — not financial, legal, or tax advice. See the disclaimer.