Real Property Transfer Tax (RPTT)
Who is Subject to this Tax?
RPTT is imposed on grants, assignments, transfers, or surrenders of real
property in New York City. This includes the sale or transfer of at least a 50
percent ownership interest in a corporation, partnership, trust, or other entity
that owns or leases real property; initial transfers of shares of stock in
cooperative housing by the sponsor; and subsequent transfers of co-op stock.
RPTT applies whenever the consideration for the sale or transfer exceeds
$25,000.
Who is Exempt from Both the Tax and the Requirement to File an RPTT Return?The
United States and its agencies, insofar as they are exempt from taxation, and
New York State and its agencies, instrumentalities, political subdivisions, and
public corporations. However, a grantee from national or state governmental
bodies must still file a return and pay the tax.
A foreign government, a person acting on behalf of a foreign government, or the
head of a foreign government's diplomatic mission, if the premises are used
exclusively for diplomatic or consular purposes.
However, where such governmental bodies are transferring property, the
transferee must still file a return and pay the tax.What Transactions are Exempt
from the Tax but Must be Reported on an RPTT Return?A deed, instrument, or
transaction by or to the United Nations or any other worldwide, international
organization of which the US is a member;
A deed, instrument, or transaction by or to any non-profit organization formed
and operated exclusively for religious, charitable or educational purposes, or
for the prevention of cruelty to children or animals;
A deed, instrument, or transaction to any government body that is exempt from
payment of the tax under the first bullet above;
A deed or instrument that is given solely as security for a debt or a deed or
instrument that is given solely to return such security;
A deed, instrument, or transaction from a mere agent, dummy, straw man, or
conduit to his principal, or a deed, instrument, or transaction from the
principal to his agency dummy, straw man or conduit;
A deed given by an executor in accordance with the terms of a will. However, a
deed given by an executor in connection with a sale of an interest in real
property is taxable; and
A deed, instrument, or transaction that constitutes a mere change of identity or
form of ownership or organization but only to the extent that the beneficial
ownership remains the same. A conveyance to a cooperative housing corporation of
the land and building or buildings comprising the cooperative dwelling or
dwellings is not exempt. Tax Forms and Filing Information
The NYC-RPT packet includes the complete transfer tax return and instructions,
registration forms for receiving real estate tax, water, and sewer bills, and a
smoke detector affidavit of compliance. Cooperative Transfer Summary returns are
separate.For property located in Manhattan (NY County), Bronx, Brooklyn (Kings
County), or Queens the packet of RPTT forms must be created on ACRIS, the
Automated City Register Information System. The paper RPTT forms are only to be
used when the property is located in Staten Island (Richmond County). ACRIS will
pre-populate many of the repetitive fields in the NYC-RPT package, and also will
ensure that all required forms and fields are completed.File online with ACRIS
Download Paper RPTT Forms (Staten Island only)Filing Deadlines
Taxpayers must pay within thirty days after the transfer and file the RPTT
return at the time of payment of the tax. Even if the transfer is not subject to
tax, or the tax is zero, the return must still be filed within thirty days after
the transfer.Filing Fees
There is a $50 fee for filing the RPTT for non-deed transfers. There is also a
filing fee for the New York State Transfer Report, RP-5217NYC. Please refer to
instructions for this form for more information.
Tax Rates
The type of sale or transfer of property and the tax rate for that conveyance
determines the amount of the tax. The tax is usually paid as part of closing
costs at the sale or transfer of property.Residential Type #1 - A conveyance of,
or the transfer of, an economic interest in:a one- to three-family house;
an individual residential condominium unit; or
an individual cooperative apartment.
Residential Type #2 - A grant, assignment, or surrender of, or the transfer of
an economic interest in a leasehold interest ina one- to three-family house or
an individual dwelling unit in a home of more than three families living
independently of each other.
For both Residential Type 1 and 2:If the consideration is $500,000 or less, the
rate is 1% of the consideration.
If the consideration is more than $500,000 the rate is 1.425%.
For all other transfers:If the consideration is $500,000 or less, the rate is
1.425% of the consideration.
If the consideration is more than $500,000 the rate is 2.625%.
Transfers to Real Estate Investment Trusts (REITS)
Taxed at one-half the otherwise applicable rate, if certain conditions are met.
Refer to Schedule R of Form NYC-RPT for more information.
Legal Authority
Local Law: Title 11, Chapter 21, Administrative Code
Enabling Act: Tax Law Section 1201(b)
Contact Us
Call Finance Customer AssistanceWrite to us:
New York City Department of Finance
Real Property Transfer Tax Unit
345 Adams Street - 7th floor
Brooklyn, New York 11201
Frequently Asked QuestionsIs the RPTT return acceptable with only the Grantor's
or the Grantee's signature? Or, if there are multiple grantors or grantees, is
the RPTT return acceptable with only the signatures of one grantor and one
grantee?
If either the Grantor or the Grantee has failed to sign the return, it will not
be accepted as a return filed by the party that didn't sign it. As a result, the
non-signing party may be assessed appropriate penalties as a non-filer. In
addition, while Finance has three years from the filing of a return to assess
additional tax, if any, because the non-signing party has not filed a return,
that three-year period will not begin for that party. This also applies to those
grantors or grantees who do not sign the return for a transaction where there
are multiple grantors or grantees.Can an attorney, title company representative,
or family member discuss a case with Finance on behalf of a taxpayer?
In order for anyone other than the Grantor or Grantee to discuss a case with
Finance, a completed power of attorney must be on file.
Contact Information
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