What taxes need to pay for buying and selling houses in New York State?

There are many tax laws in the United States: states, cities and counties may have different provisions. Therefore, before making a major decision, please consult with experienced real estate agents, lawyers and accountants based on your own situation.

Taxes of buying houses:

Luxury Tax

A 1 % Luxury tax is charged on houses worth more than 1 million dollars transaction in New York State. (here means, the house transaction price plus transaction tax total over $1,000,000).

Loan Record Tax

If the house is bought by a loan, New York State will receive a loan tax, 1.8% of total loan amount if the loan is under or equal to $500, 000 and 1.925% if the load is more than $500,000. In some special cases, in different areas, for different building types, the rate will differ from 0.8% to 2.8%. If a house is bought by cash, this tax can be waived.

New apartment sale transfer tax

An exception: In the transaction of New York City New developed apartments (Buying from Sponsor), buyers will pay sellers New York City and New York State transfer tax: New York City 1% if apartment is under or equal to $500,000 and 1.425% if over $500,000 and New York State is uniformly 0.4%.

Taxes of selling houses:

Personal Capital Gain Tax

8.97%. The exception to this rule is that when a house is sold after homeowner living more than 2 years, a single  can obtain $ 25,000 exempt from tax, while a married couple are entitled to a $ 50,000 income tax exemption.

Transfer Tax

New York City 1% (500,000 or less) or 1.425% (500,000 more). New York State: All 0.4% (Long Island is not in New York City, so the transfer tax is only 0.4% in New York State)

Commercial real estate transfer tax

If you sell two or more independent real estates for the same buyer, you have to pay commercial tax of 1.425% (500,000 or less) or 2.625% (500,000 more).

Foreigners pay tax (FIRPTA)

The 10% pre-paid tax is a “temporary” pre tax made by “foreigners” who are not U.S. residents.  It can be applied for a refund when filing the current year tax.