On a New York City 1-3 family rental, the city adds its own mortgage recording tax of 1.0% on loans under $500,000 and 1.125% at $500,000 or more, on top of the state layers, according to the NYC Department of Finance.
New York City stacks its own taxes and landlord duties on top of the state rules, and several of them land at closing. For the New York rules that apply statewide, see DSCR loans in New York.
How much is the mortgage recording tax on a New York City rental?
For residential mortgages on 1-3 family homes, the city rate is 1.0% under $500,000 and 1.125% at $500,000 or more, and the state adds a 0.50% basic tax, a 0.30% additional tax and a 0.25% special additional tax, per the NYC Department of Finance.
| Layer | Rate on a residential 1-3 family mortgage |
|---|---|
| NYC tax, loan under $500,000 | 1.0% |
| NYC tax, loan $500,000 or more | 1.125% |
| State basic tax | 0.50% |
| State additional tax (MCTD) | 0.30% |
| State special additional tax | 0.25% |
Exception: The Department of Finance report does not say which party pays each layer. Get the closing estimate in writing.
According to the NYC Department of Finance, Statistical Profile of the Mortgage Recording Tax, CY2022, published September 2023, as read October 2026.
What transfer tax applies when you buy a rental in New York City?
The NYC Real Property Transfer Tax on a deed for a 1-3 family house is 1% of the price at $500,000 or less and 1.425% above $500,000.
| Price of a 1-3 family house | NYC RPTT |
|---|---|
| $500,000 or less | 1% |
| Above $500,000 | 1.425% |
Exception: State transfer taxes also apply to the deed. The Department of Finance page does not name which party pays the city tax.
According to the NYC Department of Finance, Real Property Transfer Tax, as of October 2026.
Do New York City landlords have to register a rental?
Yes. HPD requires annual registration for buildings with 3 or more units and for 1-2 unit homes where neither the owner nor the owner's immediate family lives, with a September 1 registration deadline and a $13 annual fee billed on the July 1 property tax statement.
- The $13 fee is billed by the Department of Finance on the property tax statement.
- Registration must be renewed every year.
Exception: Registration rules have their own exemptions and filing steps; check HPD's page for the specific property.
According to NYC HPD, Register Your Property, as of October 2026.
What other New York City rules affect a rental's costs?
Since June 11, 2025, the FARE Act bars a broker who represents the landlord from charging the tenant a fee, and Local Law 1 of 2004 requires annual lead paint notices in covered rentals, including 1-2 unit homes with a non-owner-occupied unit, with annual inspections in units where a child under 6 lives.
- Under the FARE Act, landlords must also disclose all tenant-paid fees in writing before the lease is signed.
- Local Law 1 covers pre-1960 buildings, or 1960-1978 buildings where lead paint is known, and requires the annual notice between January 1 and 16.
Exception: Lead paint duties depend on the building's age and whether a child under 6 lives in the unit. Check HPD guidance for a specific property.
According to the NYC Department of Consumer and Worker Protection, Broker Fees FAQ and the HPD Property Owner Bulletin, November 2022, as of October 2026.
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This page is general education about business-purpose real estate financing and state law as published by official sources on the date shown. It is not legal, tax or lending advice, not an offer to lend and not a rate quote. Laws and lender guidelines change; confirm current rules with the lender, the title company and your own attorney or tax adviser.