Transfer Taxes Buyers Pay in Westchester County
What NYC Buyers Need to Know Before Closing
When buying a home in Westchester County, most buyers focus on mortgage rates, inspections, and property taxes.
But many buyers — especially those relocating from New York City — are surprised to learn that there are additional transfer-related taxes and fees that may apply at closing.
While the seller typically pays the main transfer tax in New York, buyers can still face several closing taxes and recording charges depending on the property and municipality.
Understanding these costs ahead of time helps buyers avoid surprises on closing day.
1. New York State Transfer Tax (Typically Paid by Seller)
The primary transfer tax in New York is the New York State Real Estate Transfer Tax.
This tax is:
$4 per $1,000 of the purchase price (0.4%)
Example:
| Purchase Price | Transfer Tax |
|---|---|
| $1,000,000 | $4,000 |
| $2,000,000 | $8,000 |
In most Westchester transactions, the seller pays this tax, not the buyer.
However, it is still important for buyers to understand because it affects the overall economics of the transaction and negotiations.
2. Mansion Tax (Paid by the Buyer)
The most common transfer tax buyers actually pay is the New York Mansion Tax.
Despite the name, this tax applies to any residential property priced at $1,000,000 or more.
The rate increases as the price increases.
Mansion Tax Rates
| Purchase Price | Tax Rate |
|---|---|
| $1M – $1.99M | 1% |
| $2M – $2.99M | 1.25% |
| $3M – $4.99M | 1.5% |
| $5M – $9.99M | 2.25% |
| $10M – $14.99M | 3.25% |
| $15M – $19.99M | 3.5% |
| $20M – $24.99M | 3.75% |
| $25M+ | 3.9% |
Example
A buyer purchasing a home in Chappaqua for $1,500,000 would pay:
$15,000 mansion tax
This tax is due at closing and cannot be rolled into the purchase price.
3. Mortgage Recording Tax
Buyers financing their purchase must also pay the New York Mortgage Recording Tax.
This tax applies to the mortgage amount, not the purchase price.
Rates vary slightly by municipality, but in most of Westchester the tax is approximately:
1.05% – 1.30% of the loan amount
Example
Home price: $1,500,000
Mortgage: $1,000,000
Mortgage recording tax:
≈ $10,500 – $13,000
Unlike the mansion tax, cash buyers do not pay this tax.
4. Local Recording and Filing Fees
In addition to taxes, buyers pay a series of smaller recording fees when the deed and mortgage are filed with Westchester County Clerk's Office.
Typical costs include:
• deed recording fees
• mortgage recording fees
• filing charges
• title-related recording costs
These generally total:
$500 – $1,500
depending on the transaction.
Example: Total Buyer Transfer Taxes
Let’s look at a common example in Westchester.
Purchase Price
$1,500,000 home
Mortgage
$1,000,000 loan
| Cost | Amount |
|---|---|
| Mansion Tax | $15,000 |
| Mortgage Recording Tax | ~$11,500 |
| Recording Fees | ~$1,000 |
Total Buyer Transfer Costs:
≈ $27,500
This is in addition to other closing costs such as title insurance, legal fees, and lender charges.
Why NYC Buyers Are Often Surprised
Buyers relocating from Manhattan or Brooklyn sometimes assume taxes will be similar to co-op purchases.
But in New York City:
-
many co-op transactions avoid mortgage recording tax
-
some transfer taxes are structured differently
In Westchester, the structure is more straightforward but can still add tens of thousands of dollars to closing costs.
Planning for Transfer Taxes
The best strategy is simple: plan for these taxes early in the home-buying process.
Buyers should:
• estimate the mansion tax before making offers
• understand mortgage recording tax if financing
• discuss closing costs with their lender and attorney early
Experienced agents and lenders can typically provide accurate estimates long before closing.
Final Thoughts
Transfer taxes are an unavoidable part of buying real estate in New York, but they shouldn’t come as a surprise.
Understanding these costs early allows buyers to:
• budget accurately
• structure offers more intelligently
• avoid last-minute closing surprises
For buyers relocating from New York City to Westchester, working with a local real estate professional who understands these details can make the process significantly smoother.
