Mortgage Recording Tax (MRT)
A NYC/NYS tax on financed real property purchases — about 1.80% of the loan under $500,000, 1.925% at or above — that applies to condos but not co-ops.
Last updated: August 12, 2026A borrower-paid tax on the loan amount (not the purchase price) for financed real property purchases in NYC. Because co-ops are technically personal property (shares in a corporation), not real property, they’re exempt — MRT applies only to condos and 1-3 family homes, and it’s one of the biggest single line items that makes condo closing costs run higher than co-op closing costs on a comparable deal.
Rate: 1.80% of the loan amount under $500,000; 1.925% at $500,000 or more.
Worked example
A condo buyer financing a $600,000 loan (above the $500,000 threshold) owes $600,000 × 1.925% = $11,550 in mortgage recording tax at closing — paid in cash, not financed into the mortgage. A buyer paying all-cash pays no MRT at all, since there’s no loan to record. See co-op vs condo costs for how this factors into the two structures’ total cost comparison, or see it calculated automatically on the Condo Calculator.