Closing Costs for NYC Buyers: Co-op and Condo

By Hillel Fried, Licensed Associate Real Estate Broker (NY license 10301213249), founder of The Hillel Team at Compass. Updated November 2026.

Quick answer

• There's no single percentage. What you pay depends on the price, whether it's a co-op or a condo, and whether you're financing.
• At $1 million and up, the buyer pays the mansion tax: 1% to start, rising to 3.9% at $25 million and above.
• A condo mortgage carries New York's mortgage recording tax. A co-op loan doesn't carry the city's.
• Buying new construction from a sponsor, your contract can make you pay the transfer taxes the seller would normally pay.

What are closing costs?

Closing costs are the taxes and fees you pay on top of the purchase price to complete the purchase. In New York City they come from four places: the government, your bank, the building, and your attorney.

The biggest differences between a co-op and a condo

On a financed purchase, the mortgage recording tax row alone can run to five figures. The worked example below shows how.

Mansion tax: who pays and how much

The mansion tax is paid by the buyer. New York State's tax department says "the additional tax (mansion tax) and supplemental tax are paid by the buyer." It starts at 1% when the price is $1 million or more, and in New York City a supplemental tax is added from $2 million.

The rate applies to the whole price, not just the part above each line. At $2,500,000, that's 1.25%, or $31,250.

Mortgage recording tax

If you finance a condo, you pay mortgage recording tax on the loan amount. New York City's Department of Finance puts the combined state and city rate at 2.050% for residential mortgages under $500,000 and 2.175% at $500,000 or more. The lender pays 0.25% of that. The state's tax department, in a 2014 advisory opinion, splits the 2.175% so that "$1.925 would be paid by the mortgagor and 25 cents would be paid by the mortgagee."

On a co-op the answer is simpler. The Department of Finance says "mortgages on individual cooperative apartments do not incur liability under the mortgage recording tax."

A worked example

Two apartments at $1,200,000, each bought with a $900,000 loan:

The two taxes alone are $17,325 apart, before any fees.

How to estimate your closing costs, step by step

1. Start with the price. At $1 million or more, apply the mansion tax rate from the table above.
2. Add the mortgage recording tax if it's a condo. 1.8% or 1.925% of the loan, depending on its size.
3. Ask the bank for its fees in writing. Points, origination, appraisal and the bank's attorney.
4. Get the building's fees. The managing agent has the list for the board package, credit checks and move-in.
5. Get your attorney's fee. Plus title insurance for a condo, or a lien search for a co-op.
6. Read your contract for transfer taxes. Especially in new development.
7. Check the closing statement against all of it before you close.

These are estimates. Your attorney, your bank and the building give you the exact figures.

What our buyers say about closing

We've worked in New York since 2014, across 800+ transactions and $1.3 billion in sales, and we've been named the #1 Team at LGF Compass eight times.

"He spotted a problem during the pre-closing walk-through, and helped us to get it documented and taken care of by the seller" Buyer, Gramercy, 2020 (Zillow review)

"He is also resourceful, helping to connect me with lawyers and contractors." Angela M Mao, first-time buyer, Upper East Side, 2021 (Zillow review)

Questions buyers ask about closing costs

How much are closing costs for a buyer in NYC?

There's no single percentage. Add the mansion tax if the price is $1 million or more, the mortgage recording tax if you're financing a condo, and the bank, building and attorney fees.

Who pays the mansion tax in NYC?

The buyer. The state's tax department says the mansion tax and the supplemental tax are paid by the buyer.

Does the mansion tax apply to co-ops?

Yes. It applies at $1 million and up whether you're buying a co-op or a condo.

Is there mortgage recording tax on a co-op?

Not the city's. The Department of Finance says mortgages on individual co-op apartments don't incur its mortgage recording tax.

Who pays the transfer tax in NYC?

Normally the seller. The state's rules let a contract shift it to the buyer, and new development contracts can do exactly that.

Do co-op buyers need title insurance?

No. In a co-op you buy shares, so your attorney orders a lien search instead.

What is the NYC transfer tax rate?

1% for residential sales of $500,000 or less, and 1.425% above that, per the Department of Finance. The state adds its own transfer tax on top.

Related guides

• Condo vs co-op in NYC
• Buyer's agent commission in NYC: how much and who pays
• Co-op board package: what goes in it
• All buyer guides

Want a closing cost estimate for a specific apartment? Call us with the price and how you're financing, and we'll walk you through the numbers.