Mortgage Recording Tax in NYC
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The mortgage recording tax NYC buyers see has a 2.05% statutory total below a $500,000 mortgage and 2.175% at or above $500,000 for a qualifying one-to-three-family home or individual condo. The lender generally pays 0.25%, leaving common borrower arithmetic of 1.80% or 1.925%, subject to exceptions.
The tax follows the amount of new mortgage debt recorded against real property, not the purchase price. New York taxes the debt before you’ve made the first payment.
Current NYC mortgage recording tax rates
Current Form MT-15 lists these NYC totals:
| Mortgage and property | Statutory total | Common borrower arithmetic* |
|---|---|---|
| Under $500,000 | 2.05% | 1.80% |
| $500,000 or more, qualifying 1-to-3-family or individual condo | 2.175% | 1.925% |
| $500,000 or more, other NYC mortgage | 2.80% | Depends on lender and property |
*The borrower column subtracts the usual 0.25% lender component. It isn’t a second government rate.
The NYS Tax Department says the tax applies when a mortgage on real property is recorded. Put the charge on the loan side of your NYC closing-cost worksheet.
Who pays mortgage recording tax
The borrower pays most of the charge in an ordinary residential loan. The 0.25% special additional component is generally imposed on the lender for property improved, or to be improved, by six or fewer residential units. The official memorandum says that lender tax “may not be passed on to the mortgagor.”
The lender gets a tax bill and a better seat at the table. Exempt-lender cases can shift that component back to the borrower, so confirm the lender type before using the subtraction.
Our closing-cost calculators can estimate the ordinary case. Your lender and title closer produce the filing number, so you should compare it with the estimate.
Cash purchases and co-op loans
No recorded mortgage means no mortgage recording tax. An all-cash purchase therefore avoids this line, though it keeps title, transfer and other costs.
A co-op buyer purchases shares and a proprietary lease. Financing is generally secured through UCC filings rather than a mortgage on the individual unit. A co-op loan has paperwork, just not this particular tax costume.
That distinction is why a condo buyer and co-op buyer with the same price and loan can bring different cash to closing. See the separate co-op title and lien guide.
Mortgage recording tax exemptions
The familiar $10,000 residential-mortgage exclusion is narrower than it sounds. It applies only to the additional component on a qualifying one- or two-family dwelling, and only once per mortgage.
The $10,000 exclusion is smaller than its reputation. It doesn’t erase the first $10,000 from every component.
If you need to preserve cash for the tax, our disclosed buyer rebate may reduce eligible cash due when your lender approves it.
Government, credit-union and other exempt-lender situations can also change liability. Don’t turn an exemption label into a closing estimate until the lender and closer confirm its effect.
Can a CEMA mortgage recording tax refinance reduce the bill?
A refinance can use a consolidation, extension and modification agreement to preserve existing mortgage debt and tax only new money when the structure qualifies. A purchase CEMA can assign a seller’s existing debt into the buyer’s new loan.
The useful acronym is still attached to several lawyers and a deadline. It requires lender cooperation, sufficient existing debt, correct documents and a cost comparison. Legal, bank and assignment fees can consume the tax saving on a small balance.
Ask for a written net calculation:
- tax without CEMA;
- tax on new money with CEMA;
- lender, seller, legal and recording charges;
- extra time and rate-lock exposure.
How to budget it before an offer
Multiply the mortgage, not the listing photo. A $1.2 million condo with a $700,000 loan uses the mortgage amount and the qualifying $500,000-or-more rate, not $1.2 million.
Then confirm whether the lender pays the 0.25% component. If a CEMA is possible, compare net savings before adding it to your offer assumptions.
For a broader cash plan, use the buyer rebate and representation page alongside the title-insurance guide. A rebate can reduce cash due, but it doesn’t change the tax law or the recorded mortgage base.
Common questions
Is mortgage recording tax based on purchase price? No. It is calculated from the taxable mortgage amount recorded against real property.
Do cash buyers pay it? No recorded mortgage means no mortgage recording tax.
Do co-op loans pay the ordinary tax? Co-op financing generally uses UCC security rather than a mortgage on the unit, so the ordinary real-property tax doesn’t apply.
Does every lender pay the 0.25% share? No. Exempt-lender and property cases can change liability, so the closing team must confirm it.
Nicole Fishman Benoliel co-founded NestApple in 2017. She's a lawyer admitted to the New York bar - her law degree is from La Escuela Libre de Derecho in Costa Rica, with further study at IE Business School in Madrid and an LLM from Fordham in New York. She does not act in a legal capacity at NestApple; every client is referred to an attorney who handles real estate deals full time.
