Selling or buying in Port Chester and not quite sure how New York transfer taxes work? You are not alone. These line items can change what you net as a seller and how much cash you need to bring as a buyer. In this guide, you will learn the essentials of New York State transfer taxes, what to verify locally in Westchester County, who typically pays what in our market, and how to work the numbers into your offer or net sheet. Let’s dive in.
What counts as a transfer tax in New York
New York applies statewide taxes to most real property transfers. These taxes are paid at closing when the deed is recorded, and your title company or closing attorney prepares the forms and remits payment.
State Real Estate Transfer Tax (RETT)
- The standard state transfer tax is 0.4% of the sale price. That is $2 for every $500 of consideration.
- Calculation is straightforward: sale price × 0.004.
- This tax generally applies to most deeded real property transfers in Port Chester.
NY “mansion tax” at or above $1,000,000
- New York imposes a 1.0% tax when the purchase price is $1,000,000 or more for residential property.
- It is calculated on the entire purchase price once the threshold is met, not just the amount over $1,000,000.
Port Chester and Westchester: local items to verify
While the state rules apply across New York, local counties and municipalities can have their own fees.
- County transfer taxes: Some New York counties add a separate transfer tax. If Westchester County assesses one, confirm the current rate and who pays with the Westchester County Clerk or a title company.
- Village fees: Most villages, including Port Chester, do not add their own transfer tax, but you should confirm any filing requirements with the Port Chester Village Clerk.
- Recording fees: The Westchester County Clerk charges recording and document fees. These are not percentage taxes but will appear on your closing statement.
- Mortgage recording tax: If a buyer uses financing, a mortgage recording tax applies when the mortgage is recorded. Rates can include state and county portions. Confirm details with your lender and title company.
Always ask your attorney or title company for a written estimate for your specific address and contract price. Local rates and practices can and do change.
Who typically pays what in Westchester
Market customs guide how taxes are split, though parties can negotiate in the contract.
- Seller commonly pays the state RETT and any customary county transfer tax if applicable.
- Buyer typically pays the 1% mansion tax on purchases of $1,000,000 or more.
- Buyer usually pays the mortgage recording tax, lender fees, and title insurance premiums, unless your contract states otherwise.
These are customs, not laws. Your signed contract controls. Have your attorney confirm current practice before you finalize terms.
Port Chester examples: how the numbers pencil out
The examples below use confirmed state rates so you can see typical impacts on proceeds and cash to close. Your title company will calculate exact figures for your transaction.
Example A: $500,000 sale
- State RETT: $500,000 × 0.004 = $2,000
- Mansion tax: $0
- Typical impact: If the seller pays the RETT, seller proceeds are reduced by $2,000, plus other seller costs.
Example B: $750,000 sale
- State RETT: $750,000 × 0.004 = $3,000
- Mansion tax: $0
- Typical impact: Seller pays about $3,000 in state RETT under local custom, subject to contract.
Example C: $1,200,000 sale
- State RETT: $1,200,000 × 0.004 = $4,800
- Mansion tax: $1,200,000 × 0.01 = $12,000
- Typical impact: Seller pays about $4,800 in state RETT. Buyer brings the $12,000 mansion tax to closing, in addition to down payment and other buyer costs. Combined state transfer-related taxes total $16,800, usually split by custom as noted.
Example D: Illustrating a hypothetical county tax
- If a county transfer tax existed at 1.0% on a $750,000 sale, that would equal $7,500.
- If custom placed that cost on the seller, the seller’s net would be reduced by that amount. This is only an illustration of how a local tax would be calculated. Confirm any real Westchester rate with your title company or the County Clerk.
How to factor transfer taxes into your numbers
Getting your math right early keeps your plans on track and avoids surprises during attorney review and underwriting.
Seller net sheet checklist
- Contract sale price
- Brokerage commission
- Mortgage payoff and any lien releases
- State RETT (0.4% of sale price)
- Any county transfer tax if applicable and assigned to seller by custom or contract
- Prorations for property taxes and any HOA or common charges
- Seller attorney and title-related fees
- Recording fees for releases or other seller documents
- Estimated net proceeds to seller
Buyer closing cost checklist
- Earnest money deposit (credited at closing)
- Down payment (total minus deposit)
- Lender fees and prepaids, including escrows
- Title insurance premiums and title charges
- Mortgage recording tax and recording fees if financing is used
- Mansion tax of 1% if the purchase price is $1,000,000 or more
- Any transfer taxes the buyer agreed to pay by contract
Tip: If you are offering at or near $1,000,000, plan for the 1% mansion tax cash requirement. Lenders and title companies will verify that you have funds for this.
Other fees often confused with transfer taxes
Mortgage recording tax
This is separate from transfer taxes. It applies when a buyer’s mortgage is recorded and is typically the buyer’s responsibility. Exact rates include state and county portions. Confirm with your lender and title company.
Title insurance and title fees
These are not transfer taxes. They protect ownership and the lender’s lien. Buyers typically pay these premiums, though parties can negotiate.
Recording fees and clerk charges
The County Clerk assesses fixed fees to record deeds, mortgages, and releases. These appear on the settlement statement and are separate from percentage-based taxes.
Condos and co-ops
Condos are generally treated like deeded real property for transfer tax purposes. Co-op share transfers follow different rules. Consult your attorney or co-op counsel for specifics.
How to verify exact amounts before you sign
- Ask your title company or closing attorney for a written estimate of transfer taxes and recording fees based on your contract price and property type.
- Check Westchester County Clerk or County Finance resources for any county transfer tax and current recording fees.
- Contact the Village of Port Chester Clerk to confirm any local filing requirements.
- If you are financing, request a detailed estimate of the mortgage recording tax from your lender and title company.
Getting written figures early helps you structure offers, negotiate who pays which items, and finalize a clean, accurate contract.
A trusted local advisor can help you plan your move, price with confidence, and navigate the details from offer to closing. If you are weighing a sale or considering a purchase in Port Chester or nearby Westchester communities, connect with Nancy Everett to request a complimentary home valuation or confidential consultation.
FAQs
Who pays New York’s state transfer tax in Westchester?
- By local custom the seller often pays the state RETT, but parties can negotiate payment responsibility in the contract.
Does the 1% mansion tax apply only to the amount over $1,000,000?
- No, once the price is at or above $1,000,000, the 1% applies to the entire purchase price.
When are transfer taxes paid in a Port Chester closing?
- They are paid at closing when the deed is recorded, and the title company or attorney files the required forms and remits payment.
Is there a Westchester County transfer tax on top of the state tax?
- Some counties impose additional taxes, so verify any Westchester county tax and current practice with the County Clerk or your title company.
Do transfer taxes affect my mortgage approval?
- They do not change your loan amount directly, but buyers must show enough funds to cover closing costs like the mansion tax in addition to the down payment.
