New York Transfer Taxes: What Sellers Should Know

Are you planning to sell a home in Albany County and wondering how New York transfer taxes will affect your bottom line? You are not alone. The rules are straightforward once you understand the basics, and a little planning goes a long way. In this guide, you will learn what the state transfer tax is, how the mansion tax works, what forms you will see at closing, and how to estimate your net proceeds. Let’s dive in.

New York transfer tax basics

New York State assesses a real property transfer tax of 0.4% of the sale price. You will see this calculated when the deed is recorded at closing. The tax applies to most deeds that transfer real property.

There is also a separate 1% mansion tax on residential sales of $1,000,000 or more. This is commonly paid by the buyer, but the purchase contract controls who pays, so confirm how your deal is structured.

The transfer-tax return is filed at the time of recording, and payment is made at that time. Your closing attorney or settlement agent typically prepares and files everything.

Who usually pays in Albany

Customs vary by region and by deal. In many Upstate New York markets, sellers often pay the state and any county transfer taxes. This is not a legal requirement. Your purchase contract sets the final allocation. Review your contract, then confirm with your agent and attorney.

Forms you will see at closing

TP-584: Combined Real Estate Transfer Tax Return

TP-584 is the primary state form that reports the sale and calculates transfer taxes. It is also where the 1% mansion tax is recorded if your sale qualifies. Your attorney or settlement agent prepares it. You should review and sign it for accuracy.

RP-5217: Real Property Transfer Report

RP-5217 is a data and reporting form used by assessors. It is not a tax payment form. It accompanies the deed when it is recorded and captures details like sale price and property type.

Local forms and recording

Some counties or cities in New York add their own transfer tax or require local forms. Albany County’s recording office can confirm whether any county or City of Albany transfer tax applies and how it is reported. Your closing attorney will include any required local forms in the recording package.

Albany County specifics to know

State rules still apply

The 0.4% state transfer tax applies to Albany County sales, and the 1% mansion tax applies to residential sales at or above $1,000,000. Who pays is determined by your contract.

Check for local transfer taxes

Some New York counties or municipalities have a separate local transfer tax. To avoid surprises, ask your attorney or the Albany County Clerk if Albany County or the City of Albany currently collects one, and at what rate. Use the county’s published fees and any local rate to refine your net proceeds estimate.

How transfer taxes affect your net proceeds

You can estimate your net proceeds with a simple framework:

• Sale price
• Less: mortgage payoff(s) and lien payoffs
• Less: real estate broker commissions
• Less: transfer taxes you are responsible for per the contract (state plus any county or city tax)
• Less: attorney fees, title and recording charges, municipal charges, and prorations
• Equals: estimated seller net proceeds

Here are two quick examples to show the math. These are illustrative. Confirm current local rates with your attorney and the county clerk.

• Example A: Sale price $350,000, assume seller pays state and a hypothetical county tax of 0.5%.

  • State tax, 0.4%: $350,000 × 0.004 = $1,400
  • County tax, 0.5%: $350,000 × 0.005 = $1,750
  • Total transfer taxes: $3,150

• Example B: Sale price $1,200,000, mansion tax applies. Who pays depends on your contract.

  • Mansion tax, 1%: $1,200,000 × 0.01 = $12,000
  • State tax, 0.4%: $1,200,000 × 0.004 = $4,800
  • Plus any local tax, if applicable

If Albany County or the City of Albany does not impose a local transfer tax, only the state tax would apply.

Exemptions and special cases

Certain transfers may be exempt from the state transfer tax, subject to documentation. Examples include some transfers between spouses, certain transfers related to a divorce agreement, gifts where no consideration is paid, transfers to or from government entities, some reorganizations, some transfers to a revocable trust, and transfers incidental to foreclosure. Exemptions must be claimed on TP-584 and usually require affidavits. Discuss any potential exemption with your attorney early.

Co-ops, condos, and commercial deals can have different treatment. Most condominium sales are real property and follow the standard rules. Many co-ops are transfers of shares rather than real property, so forms and taxes can differ. Confirm specifics with your attorney.

Negotiation tips for sellers

• Clarify who pays transfer taxes during offer negotiations and reflect it in the contract.
• If you prefer to limit your out-of-pocket at closing, consider adjusting price strategy or asking the buyer to cover some closing costs.
• Ask your agent what current Albany-area customs are so you can set expectations before you list.

Seller checklist for Albany closings

1. Ask your listing agent about current local norms for who pays transfer taxes.
2. Have your attorney or title company calculate an early net-proceeds estimate, including transfer taxes and payoffs.
3. Confirm with the Albany County Clerk whether any county or City of Albany transfer tax applies and whether a separate local form is required.
4. Order payoff statements for all mortgages and liens.
5. Review and sign TP-584 and RP-5217, and gather any exemption affidavits, if applicable.
6. Check whether the mansion tax applies and who pays per the contract.
7. If selling a co-op or other nonstandard interest, confirm the correct tax treatment and forms.

Timeline and who does what

• Listing to offer: Work with your agent to understand local customs for transfer-tax allocation and to price with net proceeds in mind.
• After the contract is signed: Your attorney confirms tax amounts, prepares TP-584 and RP-5217, verifies any local tax, and organizes the recording package.
• Closing and recording: The transfer-tax return is filed and any tax due is paid when the deed is recorded.

Where to confirm final figures

• New York State Department of Taxation and Finance for TP-584 instructions and state tax rules.
• Albany County Clerk for recording procedures, fee schedules, and any county transfer tax or local form requirements.
• City of Albany offices for any municipal transfer tax.
• Your closing attorney or title company for final calculations, exemption guidance, and filing.

Ready to price your home with clean numbers and a clear plan? For local guidance, a precise net-proceeds estimate, and hands-on support from listing to closing, connect with Christine Serafini.

FAQs

What is New York’s transfer tax for Albany home sales?

• New York’s state real property transfer tax is 0.4% of the sale price, collected when the deed is recorded in Albany County.

Does the 1% mansion tax apply in Albany County?

• Yes, the state’s 1% mansion tax applies to residential sales at or above $1,000,000. It is commonly paid by the buyer, but the contract controls who pays.

Who typically pays transfer taxes in the Albany area?

• In many Upstate markets sellers often pay the state and any county transfer taxes, but this is negotiable. Your contract sets the final allocation.

What is TP-584 and why do sellers sign it?

• TP-584 is the state’s combined transfer-tax return. It reports the sale, calculates taxes, and claims any exemptions. Your attorney prepares it and you review and sign it.

What is RP-5217 and is it a tax form?

• RP-5217 is a reporting form submitted with the deed. It is used by assessors for data and is not a tax payment form.

Does the City of Albany have its own transfer tax?

• Local taxes vary by municipality. Confirm current policy and any local rate with the Albany County Clerk and City of Albany before closing.

When are transfer taxes paid in an Albany closing?

• Transfer taxes are paid at the time of recording the deed. Your attorney or settlement agent submits the return and remits payment.

How do I estimate my net proceeds as a seller?

• Start with the sale price, subtract mortgage payoffs, broker commissions, transfer taxes allocated to you, and other closing costs. Ask your attorney for a detailed worksheet.