Buying or selling in Crown Heights and wondering how transfer and mansion taxes will affect your bottom line? You are not alone. These closing costs can add up quickly in New York City, and the rules can feel complex. In this guide, you will learn what each tax is, who typically pays, how the rates work at common Brooklyn price points, and what to do before you sign. Let’s dive in.
Crown Heights transfer taxes at a glance
New York State transfer tax
New York State charges a base real estate transfer tax of 0.4% of the sale price. This applies to most conveyances over $500 and requires a TP-584 or TP-584-NYC filing. You can review the official overview on the New York State Department of Taxation and Finance’s page for real estate transfer taxes. See NYS transfer tax guidance.
NYC Real Property Transfer Tax (RPTT)
Because Crown Heights is in NYC, the city’s Real Property Transfer Tax applies. For most residential sales, the RPTT rate is 1.0% when the price is $500,000 or less and 1.425% when it is above $500,000. The NYC Department of Finance outlines the rules and rates, including filing via ACRIS. Review NYC RPTT rates and filing.
Mansion tax in NYC
New York State imposes a mansion tax on residential purchases of $1,000,000 or more, starting at 1.0% of the price. In NYC, higher brackets add supplemental surcharges above $2,000,000, so the effective rate rises with price. The mansion tax is in addition to the state and city transfer taxes. Read NYS mansion tax basics.
Who pays these taxes
Statutory defaults vs contract terms
By statute, sellers generally pay the state transfer tax and the NYC RPTT. Buyers pay the mansion tax and any NYC supplemental mansion surcharge. In practice, a contract can reallocate costs. In some new development deals, buyers agree to pay charges typically covered by sellers. Always confirm the allocation in the executed contract. Check NYS payer rules.
Deadlines and required filings
- NYS transfer tax filings (TP-584 or TP-584-NYC) are generally due no later than the 15th day after delivery of the deed or similar document. See NYS filing guidance.
- NYC RPTT returns and payment are filed through ACRIS, with a 30-day filing requirement. Penalties and interest can apply to late filings. Review NYC RPTT instructions.
Financing the mansion tax
Lenders handle the mansion tax differently. Some require buyers to bring the full amount in certified funds at closing. Others may allow certain structures based on underwriting rules. Ask your attorney and lender early so your closing funds are ready.
Crown Heights examples you can model
Below are plain examples that mirror common Brooklyn price points. They separate who typically pays by statute. Your contract may say otherwise. Calculations are rounded.
Example A: $600,000 condo or co-op
- NYS transfer tax 0.4%: $2,400 (generally seller). NYS guidance
- NYC RPTT 1.425%: $8,550 (generally seller). NYC RPTT rates
- Mansion tax: none (under $1M).
- Approximate total transfer taxes: $10,950 (about 1.825% of price) before any contract reallocations.
Example B: $1,175,000 townhouse or larger condo
- NYS transfer tax 0.4%: $4,700 (generally seller). NYS guidance
- NYC RPTT 1.425%: about $16,744 (generally seller). NYC RPTT rates
- Mansion tax 1.0%: $11,750 (buyer).
- Combined impact across both parties: about $33,194.
Example C: $2,500,000 brownstone
- NYS transfer tax 0.4%: $10,000 (seller). NYS guidance
- NYC RPTT 1.425%: $35,625 (seller). NYC RPTT rates
- Mansion tax in this bracket: 1.25% or $31,250 (buyer).
- Combined impact: about $76,875.
Example D: $3,500,000 higher-end purchase
- NYS transfer tax for NYC sales at or above $3M: 0.65% or $22,750 (seller). NYS guidance
- NYC RPTT 1.425%: $49,875 (seller). NYC RPTT rates
- Mansion tax in this bracket: 1.5% or $52,500 (buyer).
- Combined impact: about $125,125.
Quick checklist before you sign
- Identify property type: 1–3 family, condo, co-op, or 4+ unit building. Rates differ for “residential” vs “other.” Confirm with NYC RPTT guidance.
- Use the contract price to calculate taxes. Some credits or buyer-paid seller costs can affect “consideration” for mansion tax purposes. See NYS guidance.
- Ask your attorney for exact numbers early. Request a draft closing statement that shows who pays what by contract. NYS overview.
- Confirm whether your lender allows any part of the mansion tax to be financed. If not, bring certified funds to closing.
- For new development, review whether the buyer is asked to pay customary seller costs. Negotiate this before signing.
Common pitfalls and special rules
- Co-ops and condos can trigger different filing steps. Co-op share transfers are treated as conveyances for RPTT purposes even without a deed. Review NYC RPTT rules.
- Entity and controlling-interest transfers can trigger transfer taxes and extra disclosures. LLC member lists and other schedules may be required with the TP-584. See NYS transfer tax page.
- High-value sales have graduated mansion tax brackets in NYC. Small jumps in price can change the rate you pay. NYS mansion tax basics.
- Deadlines matter. NYC and NYS can assess penalties and interest for late filings. Calendar your due dates and coordinate with your attorney and lender.
- Rules can change. Numbers in this guide reflect public guidance available in 2025. Always confirm the latest rates and forms with your attorney and the NYS and NYC pages before closing.
Plan your next steps
If you are planning a sale or purchase in Crown Heights, getting the transfer and mansion taxes right can save stress and support cleaner negotiations. I will help you work through the numbers with your attorney, set expectations before you sign, and position your deal for a smooth closing. Ready to talk strategy for your home or search? Connect with Tina Fallon for local, high-touch guidance.
FAQs
What is the NYC RPTT for a Crown Heights condo or house?
- For most residential sales: 1.0% up to $500,000 and 1.425% above $500,000, plus the separate NYS transfer tax; see NYC Department of Finance for details.
Who pays the mansion tax in NYC on a Crown Heights purchase?
- By statute the buyer pays the mansion tax and any NYC supplemental surcharge, though parties can reallocate costs by contract.
How much transfer tax is due on a $600,000 Crown Heights condo?
- About 1.825% total for NYS (0.4%) and NYC RPTT (1.425%), or roughly $10,950, before any contract reallocations.
When are transfer tax returns due for a Brooklyn closing?
- NYS filings are generally due within 15 days of delivery of the deed; NYC RPTT returns are due within 30 days and are filed via ACRIS.
Do co-op sales in Crown Heights pay transfer taxes?
- Yes, transfers of cooperative shares are subject to NYC RPTT and related filings even though no deed is recorded; confirm specifics with your attorney and the NYC guidance.
