Costs of Selling Land in New York

Selling Costs in New York: What to Know

When you sell land in New York, the biggest fixed cost is usually the state real estate transfer tax, which the seller normally pays. Some places add their own transfer tax on top, most notably New York City. You also pay your share of closing fees and, later, tax on any gain.

This page lists each cost, who usually pays it, and where the rule comes from. A worked example shows the government charges on a $25,000 lot. Rules change, so confirm current amounts with the county clerk or the Tax Department before you close.

Who pays what by custom in New York

State law puts the transfer tax on the seller. If the seller does not pay or is exempt, the buyer becomes liable. The contract sets everything else, such as who records the deed and who pays the transfer report fee.

In practice the seller pays the transfer tax and their own lawyer. The buyer usually pays for the title search, their own title policy and recording the deed. Property taxes are split to the closing date.

• Seller: state transfer tax, NYC transfer tax in the city, own lawyer, mortgage payoff if any
• Buyer: title insurance, deed recording, mansion tax on residences of $1 million or more
• Split by contract: property taxes, transfer report fee

NYC and other local transfer taxes

New York City charges its own real property transfer tax. For property that is not a one to three family house, condo or co-op, the rate is 1.425% when the price is $500,000 or less and 2.625% above that. The state also adds $1.25 per $500 on NYC non-residential sales of $2 million or more.

Outside the city, a few places have their own tax. The City of Yonkers charges a transfer tax on sales there. The five East End towns of the Peconic Bay region fund their Community Preservation Fund with a local transfer tax. Ask the county clerk if any local tax applies to your parcel.

The state mansion tax is 1% of the price on residences sold for $1 million or more, paid by the buyer. Vacant land is not a residence, so it does not apply to a typical lot sale.

Forms filed at closing

Every deed needs a transfer tax return. Use Form TP-584 outside the city or TP-584-NYC inside it, filed within 15 days of delivering the deed. The county clerk also collects Form RP-5217, the real property transfer report, with a $125 or $250 fee.

If you do not live in New York, you must file Form IT-2663 and prepay estimated income tax on any gain when the deed is recorded. For 2026 sales the form uses a 10.9% rate on the gain. You then settle up on your New York return.

Attorney or title company closing

In New York, buyers and sellers usually each hire a lawyer to draft and review the contract and deed, while a title company searches title and insures it. Land sales follow the same pattern. Your lawyer prepares the deed and the transfer tax forms.

Recording fees are set by CPLR 8021: $5 plus $3 per page, and counties may raise this to $20 plus $5 per page. Most clerks post their current fee schedule.

Capital gains basics (federal and New York)

Federal tax applies to your gain, not the sale price. Gain is the price minus your basis (what you paid plus improvements) and minus selling costs. If you owned the land more than one year, the gain is long-term and the IRS rates are 0%, 15% or 20% depending on your income. If you owned it one year or less, the gain is taxed as ordinary income.

Higher earners can also owe the 3.8% net investment income tax. The closing agent usually reports the sale to the IRS on Form 1099-S. Inherited land usually takes a basis equal to its value at the date of death, which can shrink the gain. This page is general information, not legal or tax advice; ask a tax professional about your own sale.

New York taxes capital gains as regular income at graduated rates. The top rate for 2026 is 10.9%, which is the rate Form IT-2663 uses for nonresident prepayments. New York City residents also pay city income tax.

How selling to a cash buyer changes the costs

A listed sale in New York often carries an agent commission plus the seller's share of closing costs. When you sell to EasyLotBuyer, you pay no fees or commissions and we pay the closing costs. We make a cash offer within 24 hours and can close in as few as 7 days.

Taxes on your own gain stay with you whoever buys, because they come from your income, not the closing. If the land has back taxes or liens, they are paid at closing from the sale. We also buy land with title issues or no road access, and land from heirs and estates.

• No agent commission
• No closing costs for you: we pay them
• Back taxes paid at closing from the sale
• Cash offer within 24 hours