To pay property transfer tax in New York City, buyers or sellers must submit Form PT-351 to the NYC Department of Finance at closing. The tax rate varies based on sale price:

$0–$500,000: 1%

$500,001–$1,000,000: 2%

$1,000,001+: 2.625%

Tax is prorated if the seller owned the property for less than a year. The buyer typically handles payment, though sellers may prepay. Exemptions apply for first-time buyers, co-ops, and properties under $1 million.

This process ensures funding for NYC’s public services, such as schools and infrastructure, while encouraging affordable housing through exemptions. The NYC Department of Finance collected $1.2 billion in transfer taxes in 2022, reflecting the system’s fiscal impact. Exemptions, like the first-time homebuyer credit (up to $4,000 for properties under $1.5 million), reduce barriers for low

and middle-income buyers. Data from shows 20% of 2021 purchases qualified for such relief, supporting the city’s goal of preserving 1.2 million affordable units by 2026. The tiered tax structure balances revenue generation with equity, ensuring broader access to homeownership.