At a Glance
Selling a home in New York City costs more than selling in almost any other market in the country, and the single biggest reason is that NYC imposes transfer taxes that do not exist elsewhere in New York State. Queens sellers routinely budget 5% for closing costs and are shocked when the actual deduction from their sale proceeds is 8% to 10%. On a $700,000 Queens house, that gap represents $21,000 to $35,000 — money that vanishes because the seller did not understand the fee structure before listing.
This guide breaks down every closing cost NYC sellers pay in 2026. Each line item is explained with the exact calculation, and a complete worked example shows the total cost on a $700,000 Queens house sale. If you are selling a co-op, there are additional costs — including the flip tax — that are covered in a dedicated section below.
NYC and NYS Transfer Taxes
Transfer taxes are the largest non-commission closing cost for NYC sellers, and they are paid by the seller in every transaction. There are two separate transfer taxes: one imposed by New York City and one by New York State.
NYC Real Property Transfer Tax (RPTT)
The NYC RPTT applies to every transfer of real property or economic interest in real property located in New York City. For residential properties, the rates are:
- 1.0% of the sale price when the total consideration is $500,000 or less
- 1.425% of the sale price when the total consideration exceeds $500,000
The rate applies to the full sale price, not just the amount above the threshold. A home that sells for $501,000 is taxed at 1.425% on the entire $501,000 — not at 1% on the first $500,000 and 1.425% on the remaining $1,000. This cliff effect means sellers with properties valued near $500,000 should be aware that crossing the threshold increases the transfer tax from $5,000 to $7,139 — a $2,139 jump triggered by a single dollar of sale price.
On a $700,000 sale, the NYC RPTT is $700,000 x 1.425% = $9,975.
New York State Transfer Tax
The NYS transfer tax applies statewide and is calculated at $2 per $500 of consideration, which works out to an effective rate of 0.4% of the sale price. This tax is paid by the seller unless the contract specifies otherwise (which is uncommon in residential transactions).
On a $700,000 sale, the NYS transfer tax is $700,000 x 0.4% = $2,800.
Combined Transfer Tax Impact
On a $700,000 Queens house, the seller pays $9,975 (NYC RPTT) + $2,800 (NYS) = $12,775 in transfer taxes alone. This is approximately 1.825% of the sale price and is a mandatory cost that cannot be negotiated, reduced, or avoided. It is deducted from seller proceeds at closing.
Mansion Tax — Who Actually Pays It
The NYC mansion tax is frequently misunderstood. It is paid by the buyer, not the seller. The mansion tax applies to residential purchases of $1 million or more and is structured as a graduated surcharge:
- 1.00% for purchases of $1,000,000 to $1,999,999
- 1.25% for $2,000,000 to $2,999,999
- 1.50% for $3,000,000 to $4,999,999
- 2.25% for $5,000,000 to $9,999,999
- 3.25% for $10,000,000 to $14,999,999
- 3.50% for $15,000,000 to $19,999,999
- 3.75% for $20,000,000 to $24,999,999
- 3.90% for $25,000,000 and above
While the mansion tax is the buyer's responsibility, it directly affects sellers with properties priced near or above $1 million. Buyers at the $1 million threshold face a sudden $10,000 tax that does not exist at $999,999. This creates buyer resistance at the threshold — a buyer who might accept a $1,010,000 price will push back harder than one accepting $990,000, because the mansion tax adds $10,100 to their closing costs. Sellers pricing near this range should discuss the threshold effect with their agent. For a deeper analysis, see our NYC mansion tax guide.
Attorney Fees
In New York, both the buyer and seller are represented by real estate attorneys who negotiate the contract of sale, review title, manage escrow, and conduct the closing. This is standard practice — not optional — in every NYC residential transaction.
Seller-side attorney fees in Queens typically range from $2,000 to $3,500. The attorney handles contract review, negotiation of contingencies and rider clauses, communication with the buyer's attorney throughout the transaction, review of the title report and resolution of any title issues, preparation of closing documents, and representation at the closing itself.
Attorney fees are somewhat negotiable, but the range is well-established. An attorney charging significantly below $2,000 may be handling too many transactions to give your deal adequate attention. An attorney charging above $3,500 should be handling a complex transaction (multiple liens, estate sales, co-op conversions) that justifies the premium.
Broker Commission
Broker commission is typically the single largest closing cost for sellers. Commission rates in New York are fully negotiable — they are not set by law, regulation, or MLS rule. The total commission historically has ranged from 5% to 6% of the sale price, split between the listing agent's brokerage and the buyer's agent's brokerage.
Following the 2024 NAR settlement, the structure of buyer-agent compensation has changed. Sellers are no longer required to offer compensation to the buyer's agent through the MLS. The buyer-agent commission may be paid by the buyer directly, negotiated as a seller concession, or structured in other ways. Sellers should have a detailed conversation with their listing agent about commission structure before signing a listing agreement.
On a $700,000 sale with a 5% total commission, the commission cost is $35,000. On a 6% commission, it is $42,000. This is the most variable and most negotiable cost in the entire closing process, and the difference between 5% and 6% on a $700,000 sale is $7,000.
Co-Op Specific Costs
If you are selling a co-op apartment in Queens — common in Forest Hills, Rego Park, Kew Gardens, Briarwood, and Jackson Heights — there are additional costs that do not apply to house sales.
Flip Tax
The flip tax is a transfer fee charged by the co-op corporation when shares change hands. It is specified in the co-op's proprietary lease and is almost always paid by the seller. Most Queens co-ops charge a flip tax of 1% to 3% of the sale price, though some older co-ops use a per-share formula that may produce a different amount.
On a $400,000 co-op sale with a 2% flip tax, the seller pays $8,000 to the co-op corporation. This is a direct deduction from your proceeds and is non-negotiable — it is a contractual obligation set by the co-op's governing documents.
Move-Out Fees and Other Co-Op Charges
Many co-ops charge additional fees at the time of sale, including move-out deposits ($500 to $1,500, partially refundable), transfer agent fees ($500 to $1,000), and working capital contributions. These vary by building and are specified in the co-op's house rules. Review your proprietary lease and house rules before listing so you can accurately estimate your total closing costs.
Note on Transfer Tax for Co-Ops
Co-op sales are technically transfers of shares in a corporation, not transfers of real property. However, both NYC RPTT and NYS transfer tax still apply to co-op transfers. The tax is calculated on the total consideration, which includes the sale price of the shares plus the buyer's proportionate share of the co-op's underlying mortgage (if any). Your attorney will calculate the exact amount based on the co-op's financial statements.
Other Seller Closing Costs
Mortgage Payoff and Recording Fees
If you have an existing mortgage, the outstanding balance is paid off from your sale proceeds at closing. Your lender will provide a payoff statement that includes the remaining principal balance, accrued interest through the closing date, and any prepayment penalties (uncommon but possible with some loan products). There is typically a recording fee of $50 to $75 for the satisfaction of mortgage document that is filed with the county clerk's office to clear the lien from the property.
NYC and NYS Transfer Tax Filing Fees
Filing the transfer tax returns with the NYC Department of Finance and the NYS Department of Taxation incurs nominal fees — typically $50 to $100 combined. Your attorney handles these filings as part of the closing.
Title-Related Costs (If Applicable)
In most NYC house transactions, the buyer purchases title insurance, which is a buyer cost. However, the seller may incur costs related to clearing title defects discovered during the title search. Common title issues in Queens include open DOB violations, unpaid water and sewer charges, tax liens, and judgments. The cost of clearing these issues varies — resolving a DOB violation might cost $500 to $5,000 depending on the nature of the violation, while paying off an old water bill might be $200 to $2,000. These are not standard closing costs, but they are expenses that can arise during the closing process.
Miscellaneous Costs
Additional seller costs may include: a property survey update ($400 to $800, sometimes required), smoke and carbon monoxide detector compliance certification ($50 to $200), any credits agreed upon during negotiation (inspection credits, repair credits), and overnight wire transfer fees ($25 to $50) for receiving your proceeds.
Know Your Net Proceeds Before You List
Nitin Gadura will calculate your estimated net proceeds — what you actually take home after every closing cost — before you commit to listing. Free, no obligation.
Get Your Free Net Proceeds Estimate Call (917) 705-0132 or send a message. No obligation.Worked Example: $700,000 Queens House Sale
The following table shows every seller closing cost for a $700,000 single-family house sale in Queens, assuming a 5% total broker commission and no co-op-specific costs. This represents a typical transaction for a brick two-family or detached colonial in neighborhoods like Ozone Park, Woodhaven, Jamaica Estates, or Bayside.
| Cost Item | Rate / Amount | Amount |
|---|---|---|
| NYC Transfer Tax (RPTT) | 1.425% | $9,975 |
| NYS Transfer Tax | 0.4% | $2,800 |
| Broker Commission (total) | 5.0% | $35,000 |
| Seller Attorney Fees | Flat fee | $3,000 |
| Transfer Tax Filing Fees | Flat fee | $75 |
| Mortgage Satisfaction Recording | Flat fee | $75 |
| Smoke/CO Detector Compliance | Flat fee | $150 |
| Wire Transfer Fee (proceeds) | Flat fee | $50 |
| Miscellaneous (payoff statement, courier, etc.) | Estimated | $250 |
| Total Seller Closing Costs | ~7.4% | $51,375 |
| Estimated Net Proceeds (before mortgage payoff) | $648,625 |
Important notes on this example: The net proceeds figure of $648,625 is before any outstanding mortgage balance is paid off at closing. If you owe $300,000 on your mortgage, your actual take-home proceeds would be $648,625 - $300,000 = $348,625. If commission is 6% instead of 5%, add $7,000 to the cost column, reducing net proceeds to $641,625. Co-op sellers should add their flip tax (1% to 3%) and any building-specific fees to the total.
How to Reduce Your Closing Costs
Transfer taxes are non-negotiable. They are set by law and apply uniformly. However, several other costs offer room for optimization:
Commission structure. Commission is the single largest variable cost. Negotiate the total commission rate with your listing agent before signing. Discuss the post-2024 NAR settlement landscape and whether the buyer-agent commission will be offered as a seller concession or handled separately. Even a half-point reduction (from 5.5% to 5%) on a $700,000 sale saves $3,500.
Attorney selection. Get quotes from at least two real estate attorneys. The fee range of $2,000 to $3,500 allows for meaningful savings by comparing options. However, do not choose an attorney solely on price — experienced real estate attorneys earn their fee by preventing problems that cost far more than the fee differential.
Pre-sale title clearing. Address known title issues — open DOB violations, unpaid water charges, old liens — before listing. Clearing these issues proactively costs less than resolving them under closing pressure, and it prevents buyers from using title defects as negotiating leverage for additional credits.
Minimize negotiated credits. Properly staging your home, completing pre-sale repairs, and addressing inspection items before listing reduces the likelihood of buyers requesting post-inspection credits. Sellers who invest in preparation sell with fewer concessions at the closing table. For staging guidance specific to Queens housing stock, see our home staging tips for Queens sellers.
Plan Your Sale
Understanding closing costs is one component of the full selling process. For a complete walkthrough covering pricing strategy, agent selection, preparation, negotiation, and closing mechanics, read our step-by-step guide to selling your house in Queens in 2026.
If you are selling an inherited property, your closing cost calculations will intersect with probate, stepped-up basis, and capital gains considerations. Our guide to selling inherited property in Queens covers the additional legal and tax steps that apply to estate sales.
For sellers focused on maximizing their net proceeds, proper home staging reduces the likelihood of buyer negotiation credits and can increase the final sale price by 3% to 5%. Our 10 home staging tips for Queens sellers covers practical improvements specific to Queens row houses, two-families, and co-ops.
