NYC Affordability

Why NYC sellers pay more than buyers do

Most U.S. markets split closing costs roughly evenly between buyer and seller, with the seller mainly on the hook for broker commission. NYC tilts the balance further toward sellers: on top of the commission, sellers pay two layers of transfer tax — a city tax and a state tax — that buyers never see on a resale. Co-op sellers add a third, building-specific flip tax on top of that. Combined, it’s common for total seller costs to run 7%-10% of the sale price on a typical resale, before any capital gains tax.

The line items, in order of size

Broker commission. The largest line item on almost every NYC sale. Typical rates run 4%-6% of the sale price, historically split between the listing and buyer’s agent, though commission structures have become more negotiable since the 2024 NAR settlement changed how buyer-agent compensation is offered. This is paid entirely by the seller — NYC’s FARE Act (2025) changed who pays rental broker fees, not sale-side commissions.

NYC Real Property Transfer Tax (RPTT). A city tax on nearly every sale: 1.00% of the price up to $500,000, and 1.425% above that. It applies to condos, co-ops, and 1-3 family homes alike, and is paid by the seller (the grantor) directly to the NYC Department of Finance at closing.

NYS Real Estate Transfer Tax. A separate state tax layered on top of NYC RPTT: a flat 0.4% of the price ($2 per $500 of consideration), plus an additional 0.25% NYC tax on residential sales of $3,000,000 or more — 0.65% combined at that tier. Also seller-paid. See our mansion tax guide for the buyer-paid tax this is often confused with — they apply to opposite sides of the same transaction.

Co-op flip tax (co-ops only). Not a government tax at all — a fee set by the co-op corporation’s own proprietary lease, charged when shares change hands. Rates typically run 1%-3% of the sale price at market-rate buildings and can run far higher — commonly around 30% of profit, and up to 70% of sale price — at income-restricted HDFC co-ops. Every building sets its own rate and structure, and some charge none at all. See our full flip tax guide for how it’s typically calculated.

Attorney fees. New York requires attorney representation on both sides of a residential closing. Seller-side fees typically run $1,500-$3,000 for a straightforward resale, more for complex deals.

Title, payoff, and miscellaneous fees. A mortgage satisfaction/payoff processing fee, any move-out deposit, and small filing fees typically add $500-$1,500 combined. Co-ops also often charge a separate flat transfer/processing fee on top of the flip tax.

What’s left: capital gains

Transfer taxes and commission reduce your proceeds at closing, but they also reduce your taxable gain — the IRS lets you subtract selling expenses from your amount realized before comparing it to your cost basis. Most owner-occupied sellers who’ve lived in the home 2 of the last 5 years can exclude up to $250,000 of gain ($500,000 married filing jointly) under Section 121 before owing any capital gains tax at all. See IRS Publication 523 for the full rules, and consult a CPA — depreciation recapture, investment-property status, and other situational rules can change the math.