Short answer: the NYC mortgage recording tax (MRT) is charged when a mortgage on a NYC condo or one- to three-family house is recorded. The borrower pays 1.8% of the loan amount on loans under $500,000 and 1.925% on loans of $500,000 or more; the lender pays an additional 0.25%. Co-op loans are exempt, and a CEMA can limit the tax to new money on a refinance or purchase.
After the mansion tax, the mortgage recording tax is usually the largest tax a NYC buyer pays at closing, and it is often the biggest line item that surprises first-time buyers. Because it is calculated on the loan rather than the price, putting more money down directly reduces it.
NYC Mortgage Recording Tax Rates (2026)
| Loan amount | Total NYC rate | Borrower pays | Lender pays |
|---|---|---|---|
| Under $500,000 | 2.05% | 1.80% | 0.25% |
| $500,000 or more | 2.175% | 1.925% | 0.25% |
Rates for mortgages on one- to three-family homes and individual condo units in NYC. Commercial mortgages of $500,000 or more are taxed at 2.8% in total. The lender’s 0.25% share applies to residential properties of one to six units.
Like the transfer tax, the MRT is not a marginal bracket. Once the loan reaches $500,000, the higher rate applies to the whole loan amount. A $499,000 loan owes about $8,982, while a $500,000 loan owes $9,625.
Mortgage Recording Tax Examples
| Purchase | Loan | Borrower’s MRT |
|---|---|---|
| $500,000 condo | $400,000 (under $500K) | $7,200 |
| $1,000,000 condo | $800,000 ($500K+) | $15,400 |
| $1,200,000 townhouse | $960,000 ($500K+) | $18,480 |
| $1,200,000 co-op | $960,000 (share loan) | $0 — co-op loans are not recorded mortgages |
Run your own numbers with the NYC buyer closing cost calculator, which adds the MRT to the mansion tax, title insurance and other buyer costs.
Who Pays the Mortgage Recording Tax?
The borrower pays most of it, as a buyer closing cost or refinance cost. On residential mortgages the lender pays a 0.25% share. A seller credit negotiated in the contract can offset the buyer’s MRT along with other closing costs, within the lender’s limits on seller contributions. See who pays closing costs in New York.
Do Co-op Buyers Pay Mortgage Recording Tax?
No. A co-op buyer purchases shares in a corporation and receives a proprietary lease; the loan is secured by those shares and the lease, not by a recorded mortgage on real property. Because nothing is recorded, no MRT applies. This is one of the main reasons co-op closing costs are lower than condo closing costs at the same price.
How a CEMA Reduces Mortgage Recording Tax
A Consolidation, Extension and Modification Agreement (CEMA) lets a new loan take over an existing recorded mortgage instead of paying it off. Because MRT has already been paid on the existing balance, tax is due only on the new money.
- Refinance CEMA. A homeowner with a $600,000 balance who refinances into a $650,000 loan pays MRT only on the $50,000 of new money, rather than on $650,000.
- Purchase CEMA. The seller’s lender assigns the seller’s existing mortgage to the buyer’s lender, and the buyer pays MRT only on the difference between the new loan and the assigned balance. This requires cooperation from the seller and both lenders, so it has to be negotiated early.
CEMAs involve lender fees and extra legal work, so they make the most sense when the existing balance is large. Not every lender offers them.
Mortgage Recording Tax Outside NYC
Outside the five boroughs the rates are lower. In Nassau, Suffolk and Westchester counties the total rate is about 1.05%, with the borrower on a one- to six-family home typically paying 0.8% and the lender 0.25%; some cities, such as Yonkers, add their own tax. New Jersey has no mortgage recording tax at all, only county recording fees.
The Law Behind the Tax
The mortgage recording tax is imposed under New York Tax Law Article 11 (beginning at §250), with the basic, additional and special additional taxes set out in §253, and a separate NYC tax authorized for the city. The tax is paid when the mortgage is recorded, through ACRIS in NYC, and the lender’s share is paid by the lender.
Buying or refinancing in NYC? Our NYC real estate attorneys calculate your closing costs up front and coordinate CEMAs with the seller and lenders when they can save you tax.
Frequently Asked Questions
How much is the mortgage recording tax in NYC?
For NYC condos and one- to three-family homes, the borrower pays 1.8% of the loan amount on loans under $500,000 and 1.925% on loans of $500,000 or more. The lender pays an additional 0.25%. On an $800,000 loan, the borrower’s share is $15,400.
Do you pay mortgage recording tax on a co-op?
No. Co-op loans are secured by shares and a proprietary lease rather than a recorded mortgage, so no mortgage recording tax applies.
Can you avoid mortgage recording tax on a refinance?
You can reduce it with a CEMA, which lets the new loan take over the existing mortgage so tax is due only on the new money. It requires your lender to participate and adds some fees.
Who pays the mortgage recording tax, the buyer or the seller?
The buyer (borrower) pays it, because it is a tax on recording the buyer’s mortgage. The lender pays a 0.25% share on residential loans. A seller credit can offset it as part of the buyer’s closing costs.
Is the $500,000 threshold a marginal bracket?
No. If the loan is $500,000 or more, the higher 1.925% borrower rate applies to the entire loan amount.
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