Cash to buy / The mortgage recording tax
The mortgage recording tax
A tax on recording a mortgage, paid at closing when you borrow to buy a condo or a house. Enter the loan to see your share.
Available now, no account neededHow it works
It's a percentage of the loan, not the price. Several state, city and transit taxes add up to the rate; on a home of up to six units the lender pays the 0.25% special additional tax, and the rest falls to you. NY Tax Law §253 · checked 21 Oct 2026
Rates
| Loan | Total rate | Lender pays | You pay |
|---|---|---|---|
| New York City, under $500,000 | 2.05% | 0.25% | 1.8% |
| New York City, $500,000 or more (1–3 family house or condo unit) | 2.175% | 0.25% | 1.925% |
| Suffolk County (the Hamptons), any amount | 1.05% | 0.25% | 0.8% |
NY Tax Department memo TSB-M-05(4)R (rate table) · checked 21 Oct 2026 Model rates · rates checked 2026-10-14
The $10,000 rule for houses
On a one- or two-family house the first $10,000 of the loan isn't subject to the 0.30% additional tax, which takes $30 off the bill. We apply it to houses; whether a particular property qualifies is for your attorney to confirm. TSB-M-05(4)R · checked 21 Oct 2026 NY Tax Law §253(2)(a) · checked 21 Oct 2026
Co-ops
A co-op loan is secured by your shares and proprietary lease, not by a mortgage on real property, so there's no mortgage to record and no mortgage recording tax.
Who pays
You, the borrower, pay everything but the lender's 0.25% special additional tax on a home of up to six units, which the law says the lender pays. NY Tax Law §253(1-a) · checked 21 Oct 2026
Worked examples
| Example | Tax | How |
|---|---|---|
| A $450,000 loan on a Manhattan condo | $8,100 | 1.8% × $450,000 |
| A $1,200,000 loan on a Manhattan condo | $23,100 | 1.925% × $1,200,000 |
| A $4,650,000 loan on a Hamptons house | $37,170 | 0.8% × $4,650,000, less $30 for a house |
Common mistakes
- Working it out on the price. It's charged on the loan, so a bigger down payment lowers it.
- Missing the step at $500,000 in the city. The higher rate applies to the whole loan: $499,999 costs $9,000, $500,000 costs $9,625.
- Quoting the full 2.175%. On a home the lender pays 0.25% of it.
- Expecting it on a co-op loan. There isn't one.
- Not asking about a CEMA. Taking over the seller's existing mortgage can shrink the taxed amount; ask your attorney and lender whether it's possible on your purchase.
Estimates for planning, not legal or tax advice; your attorney confirms the closing statement.