Understanding NYC Transfer Taxes When Selling Your Midwood Property
What are NYC transfer taxes when selling your Midwood property?
When you sell real estate in Midwood, Brooklyn, you’re responsible for paying New York City and New York State transfer taxes. These taxes are calculated based on the sale price and are typically deducted from your proceeds at closing.
What Are Transfer Taxes?
Transfer taxes are fees imposed by state and local governments when ownership of real estate is transferred from one party to another.
In New York City, sellers are usually responsible for paying:
New York State (NYS) Transfer Tax
New York City (NYC) Real Property Transfer Tax (RPTT)
These are separate from income or capital gains taxes and are due at the time of closing.
How Much Are NYC and NYS Transfer Taxes?
1. NYS Transfer Tax
0.4% of the sale price
Applies to all property sales above $500
2. NYC Transfer Tax
The rate depends on the property type and price:
Residential properties under $500,000: 1.0%
Residential properties $500,000 or more: 1.425%
Example for a Midwood home sale:
If you sell your home for $1,000,000:
NYS Transfer Tax = $4,000
NYC Transfer Tax = $14,250
Total Transfer Taxes = $18,250 (paid by seller at closing)
Are Transfer Taxes Negotiable?
In NYC, the seller almost always pays the transfer taxes. While they are technically negotiable, it’s rare for buyers to agree to pay them in a competitive market.
In buyer’s markets, or if you’re selling an investment property, transfer tax costs can sometimes be shared or credited—but this is not typical in Midwood’s current market (as of 2025).
Who Handles the Payment?
At closing, your real estate attorney and title company coordinate the payment of transfer taxes. These amounts are deducted from your proceeds and submitted directly to the appropriate agencies.
You’ll see the tax amounts itemized on your closing disclosure or HUD-1 settlement statement.
What Happens If You Don’t Pay Transfer Taxes?
Failing to pay your transfer taxes can lead to:
A delay in closing
Legal action from the city or state
A lien placed on the property
Fortunately, with the right professionals handling your sale—including your attorney and experienced local agent Dalia Samouha—this is never a concern.
Are There Any Exemptions?
Certain transfers may be exempt from transfer taxes, such as:
Sales between spouses in a divorce
Gifts of property with no monetary exchange
Inheritances (under some conditions)
If you believe you may qualify for an exemption, speak to a real estate attorney.
Why Understanding Transfer Taxes Matters for Midwood Sellers
In Midwood, where sale prices often exceed $900,000, transfer taxes are a significant closing cost. Knowing what to expect helps you:
Accurately calculate your net proceeds
Avoid surprises during negotiation
Plan for your next move or reinvestment
How Dalia Samouha Helps Midwood Sellers Navigate Taxes
Dalia Samouha of Ideal Properties Realty provides every seller with:
A clear breakdown of estimated transfer taxes
Net sheet projections before listing
Referrals to trusted attorneys and title companies
Her goal is to make the financial side of your sale just as smooth as the marketing and negotiation.
Final Thoughts
Transfer taxes are a standard part of selling real estate in NYC—but they don’t need to be stressful.
If you’re preparing to sell your home in Midwood, reach out to Dalia Samouha at Ideal Properties Realty. She’ll help you understand all your costs and guide you through every step of the process
