By Rellia editorial team — The Rellia editorial team prepares source-linked educational pages for Long Island sellers.

Published 2026-09-28 · Updated 2026-10-13

How does the New York transfer tax work for Long Island sellers?

Quick answer

Long Island sellers normally pay New York State's real estate transfer tax, unless the contract says otherwise. The tax is $2 for each $500, or fraction of $500, of the sale price (0.4%), which is $3,040 on a $760,000 sale and $3,644 on a $911,000 sale. The 1% "mansion tax" on residences of $1 million or more is a separate tax that the buyer normally pays. The extra New York City transfer taxes do not apply in Nassau or Suffolk.

The rate, in plain numbers

The Tax Department's rule is $2 per $500 of consideration, rounded up to the next $500. The Suffolk County Clerk's deed page gives a small example: $750 of consideration produces $4 of tax, because $750 counts as two $500 increments.

• $600,000: transfer tax (seller) $2,400; mansion tax (buyer) none
• $760,000: transfer tax (seller) $3,040; mansion tax (buyer) none
• $911,000: transfer tax (seller) $3,644; mansion tax (buyer) none
• $999,999: transfer tax (seller) $4,000; mansion tax (buyer) none
• $1,000,000: transfer tax (seller) $4,000; mansion tax (buyer) $10,000
• $1,250,000: transfer tax (seller) $5,000; mansion tax (buyer) $12,500

These are arithmetic examples only. The $760,000 and $911,000 examples match the August 2026 median prices of closed home sales in Suffolk and Nassau, as reported by Long Island Business News from OneKey MLS numbers on September 17, 2026.

Who pays

The Tax Department says the base transfer tax is paid by the grantor (the seller) and is not to be paid directly or indirectly by the grantee (the buyer) except as provided in a contract between them. If the seller does not pay, or is exempt, the buyer must pay, and the tax becomes a joint and several liability of both parties. In that case the buyer has a right to recover the payment from the seller.

For residential property, if the buyer pays the transfer tax under the contract, the amount of that tax is excluded from the consideration used to compute it.

The mansion tax: buyer-side context for sellers

The Tax Department adds a 1% tax on the sale price of residences where consideration is $1 million or more. The buyer pays it. If the buyer does not pay or is exempt, the seller must pay, and it becomes a joint and several liability.

The threshold matters to sellers because it matters to buyers. In the examples above, a $1,000,000 price costs the buyer $10,000 more in mansion tax than a $999,999 price. When you price your home near that line, expect buyers to notice.

For mansion-tax purposes, the Tax Department defines consideration broadly, including the amount of any mortgage or lien, whether or not it is assumed.

New York City rates do not apply on Long Island

Since July 1, 2019, certain conveyances in New York City also carry an additional base tax on residential property of $3 million or more and a supplemental tax on residential property of $2 million or more, the latter at incremental rates between 0.25% and 2.9%. Those apply only to property located in New York City. Nassau and Suffolk sales use the statewide rate and the flat 1% mansion tax. This is one reason to confirm that a property near the Queens border is actually in Nassau.

Filing: Form TP-584

For property outside New York City, the parties file Form TP-584 with the county clerk where the property is located. The Tax Department says the form and payment are due no later than the 15th day after the deed is delivered. In practice, the closing attorneys or title closer usually prepare and submit it with the deed. Both county clerks charge a $5 fee for the TP-584 filing, according to the Suffolk Clerk's deed fee list and the Nassau Clerk's posted schedule.

If the seller is a nonresident of New York, the Tax Department says the seller may need to compute any gain and pay estimated personal income tax using Form IT-2663, unless an exemption on Form TP-584 applies.

Exemptions and special cases

The Tax Department lists conveyances that are not taxable, including bona fide gifts made without consideration, conveyances that only correct or confirm a prior deed, a change in the form of ownership where the beneficial ownership does not change, and deeds of partition. It also lists exempt governmental entities. Transfers by inheritance (devise, bequest, or inheritance) are not treated as conveyances for this tax.

The continuing lien deduction excludes the value of a lien that stays on the property after the transfer, for a one-, two-, or three-family house or an individual residential condominium unit. In a typical Long Island sale the seller's mortgage is paid off at closing, so this rarely applies, but ask your attorney if a mortgage is being assumed.

When a limited liability company is the buyer or seller of a building with up to four family units, the Tax Department says Form TP-584 must include the names and addresses of the LLC's members, managers, and other authorized persons.

East End towns: a separate buyer-side tax

In five East End towns in Suffolk (Riverhead, Southampton, East Hampton, Shelter Island, and Southold), the Suffolk Clerk requires a Peconic Bay Region Community Preservation Form. New York Tax Law Section 1449-dd places that transfer tax on the buyer. It does not apply in Nassau or in western and central Suffolk. See the Suffolk closing-cost guide for details.

Where the transfer tax fits in your net proceeds

The transfer tax is usually the largest government charge a Long Island seller pays, but it is small next to brokerage compensation or a platform fee. Rellia's seller platform fee is 2% of the final sale price, payable at closing. On a $760,000 sale that is $15,200, compared with $3,040 of transfer tax. See pricing, estimate your value with the free estimator, and review the buyer closing cost calculator to see the mansion tax from the buyer's side. When you are ready, start at /sell.

Before you rely on this guide

Please note: This guide is general information, not legal, tax or financial advice. It may contain inaccuracies or become outdated. Before you act, confirm the details for your sale with your own attorney, tax adviser or title company.

Rates and rules are as of October 13, 2026, from New York Tax Law Article 31, the NYS Tax Department and the Form TP-584 instructions.