Cash to buy / The Peconic Bay transfer tax
The Peconic Bay transfer tax
A tax the buyer pays on buying property in the five East End towns, which funds land preservation and, in four towns, community housing. Pick the town and enter a price.
Available now, no account neededHow it works
A 2% Community Preservation Fund tax applies in all five towns. East Hampton, Shelter Island, Southampton and Southold also charge the 0.5% Community Housing Fund tax on top; Riverhead doesn't. NY Assembly release, 11 Jun 2026 · checked 21 Oct 2026 Part of the price is exempt, but only when the price is $2,000,000 or less: above that the tax is on the whole price. NY Tax Law §1449-ee · checked 21 Oct 2026
By town
| Town | Rate | Exempt, with a house | Exempt, vacant land | First-time buyer exemption |
|---|---|---|---|---|
| East Hampton | 2.5% | $400,000 | $100,000 | Yes |
| Riverhead | 2% | $200,000 | $75,000 | No |
| Shelter Island | 2.5% | $400,000 | $100,000 | Yes |
| Southampton | 2.5% | $400,000 | $100,000 | Yes |
| Southold | 2.5% | $200,000 | $75,000 | Yes |
Exemptions apply only at $2,000,000 or less. NY Tax Law §1449-ee · checked 21 Oct 2026
First-time buyers
In East Hampton, Shelter Island, Southampton and Southold a primary home bought by first-time buyers can be exempt, if the price is within the State of New York Mortgage Agency's purchase price limits (150% of them in the first three towns, 60% in Southold) and household income is within the agency's limits for Suffolk County. You apply to the town on its own form. The calculator doesn't apply this exemption. NY Tax Law §1449-ee(4) · checked 21 Oct 2026 Southampton: CPF questions · checked 21 Oct 2026
Who pays
The buyer, by law. NY Tax Law §1449-dd · checked 21 Oct 2026
Worked examples
| Example | Tax | How |
|---|---|---|
| A $1,500,000 house in Southampton | $27,500 | 2.5% × ($1,500,000 − $400,000) |
| A $2,100,000 house in East Hampton | $52,500 | 2.5% × ($2,100,000 − $0) |
| A $900,000 house in Riverhead | $14,000 | 2% × ($900,000 − $200,000) |
Common mistakes
- Missing the $2 million cliff. In Southampton $2,000,000 pays $40,000, while $2,000,001 pays $50,000: the exemption disappears.
- Using one rule for every town. Riverhead and Southold exempt $200,000, not $400,000, and Riverhead has no housing fund tax.
- Treating the exemption as a threshold. It's taken off the price; the tax is still due on the rest.
- Expecting the seller to pay. It's the buyer's tax, on top of the mansion tax and the mortgage recording tax.
Estimates for planning, not legal or tax advice; your attorney confirms the closing statement.