New York Home Buying Costs and Taxes

New York Home Buying Cost Breakdown

When buying a home in New York, the cost of buying a new home versus a second home can vary, and the actual cost can vary depending on the property and the housing market. Below are all the costs and taxes for buying a home in New York.

For an all cash purchase, the cost of buying a home is approximately 1% of the total amount.
For a financed purchase, the cost of the loan is an additional 1-2% of the loan amount.


If the transaction is over $1,000,000 (which most of them are), there is an additional mansion tax (below).
For new homes, depending on market conditions, roughly an additional 1.9% of the total amount is required, which is between 2.5% – 4.4%.


As a buyer, the following is a breakdown of the fees you will have to pay

  • Title Insurance 0.4% (survey and insurance fee, based on total price)
  • NYS Mansion Tax (based on the total price in stages)
    • 1,000,000 – $1,999,000: 1.00%
    • 2 million – 2.99 million: 1.25%
    • 3 million – 4.99 million: 1.50%
    • 5 million – 9.99 million: 2.25%
    • 10 million – 14.99 million: 3.25%
    • 15 million – 1999 million: 3.50%
    • 20 million – 24.99 million: 3.75%
    • 25 million or more: 3.90%
  • Loan Tax 1.9% (based on total loan amount)*
  • Attorney’s fee $1500 – $2500
  • Application fee $500 – $2000 (payable to property management company)
  • Loan application fee, etc. $1000

*NYC 1.9% / Nassau County 1.05%*

Additional costs for new homes (depending on the circumstances, there is room for negotiation on the cost of new homes)

  • Transfer Tax 1.825% (NYS 0.4% and NYC 1.425%)
  • Seller’s attorney’s fee $2,000 – $3,000 (builder’s/developer’s attorney’s fee is usually paid by the buyer in New York)
  • Building operating reserve (usually 2-4 months of property management fees)
  • Resident building manager’s apartment (varies by building)

New York Home Buying Costs and Taxes Explained

Title Insurance

A relatively new expense for Asian buyers, due to some US laws and loopholes, title insurance has become a very important part of buying a home.

For example, in New York, when a person illegally remains on another person’s land or property for more than 10 years without eviction by the landlord (also known as squatting), the person may claim the right to stay or even be entitled to the parcel/property. Other concerns include fraud, title disputes, and inadequate title registration, making title insurance an essential cost of buying a home.

In New York City, buyers pay transfer tax and seller’s attorney’s fees on new homes, and sellers pay transfer tax on resale homes. However, this rule is market dependent and in a down market, buyers can try to negotiate the price of a new home and let the developer cover the cost as “credit”.

Mansion Tax

Any property over $1,000,000 is subject to a 1% fee on the total transaction price. Since 2019, the luxury tax has been increased to a stepped-up system, raising the cost of buying a high-end property.

Application Fee

When buying a condominium, buyers will need to submit an application to the property management and homeowner’s association. The application fee varies from building to building, but is usually not excessive. Other application fees include loan application fees and loan taxes.

Foreigners Buying a Home

Although there are no additional fees for foreign buyers, there are many things to consider, including estate taxes, foreign investment in real estate tax laws, etc. For more information, click on the link Foreign Buyer Info

Jerry Wang 王傳詠

Jerry Wang 王傳詠

Hi! I am fluent in English and Chinese and have 20 years of experience, if you have any questions, please feel free to contact me through the following methods!

+1.917.225.7078 | LINE | WeChat | WhatsApp
[email protected]

LINE QR

130 William – Best Finishes in 2021

Brand New | 66 Stories | 244 Units | Spring 2021 Closing

1 bedroom Price: from 1.3 million
2 bedroom Price: 1.9 million
3 room price: from 2.8 million
4 bedroom price: from 5.4 million

11 Hoyt – The latest luxury condo in Downtown BK

Brand New | 57 Stories | 481 Units | Spring 2021 Closing

Studio price: from $675,000
1-bedroom price: from $930,000
2-bedroom price: from $1.25 million
3 bedroom price: from 1.9 million
4-bedroom price: from 3.4 million