To pay taxes on a non-primary first-time purchase in New York, follow these steps: (1) Classify the property as an investment or secondary residence, as non-primary purchases lack federal first-time homebuyer credits. (2) Calculate New York City (NYC) transfer taxes, which range from 1% to 2.625% of the sale price depending on the property’s value. For example, a $1 million sale incurs a 2.625% tax ($26,250). (3) File state and federal tax returns, deducting mortgage interest (up to $1 million) and property taxes if itemizing, subject to the $10,000 SALT deduction cap. (4) For NYC, apply for the NYC First Home Program if eligible (income ≤ $156,000 for single buyers, ≤ $212,000 for couples), which offers partial transfer tax relief and below-market interest rates.

Non-primary first-time purchases in New York face distinct tax obligations due to the absence of federal first-time homebuyer incentives. NYC transfer taxes are steep, with a 2.625% rate on sales over $1 million, significantly higher than the 1.825% average for purchases under $2 million. The NYC First Home Program mitigates these costs for eligible buyers but requires stringent income limits and property value caps (≤ $1.295 million in NYC). Statewide, New York property taxes average $7,500 annually for a $500,000 home, while federal mortgage interest deductions remain capped at $1 million. Data from the NYC Department of Finance shows that 60% of first-time buyers in 2022 qualified for NYC transfer tax reductions, saving an average of $15,000. However, non-primary purchases exclude access to the federal first-time homebuyer tax credit, which expired in 2009. This disparity highlights the importance of distinguishing property type and leveraging local incentives to optimize tax liability.