Navigating the closing costs of a home purchase or refinance in New York City can be complex, and the NYC Mortgage Recording Tax (MRT) is often one of the most significant expenses. Our calculator is designed to help you quickly estimate this crucial cost, providing clarity as you plan your NYC real estate transaction.
Estimate Your NYC Mortgage Tax
Understanding the NYC Mortgage Recording Tax (MRT)
The Mortgage Recording Tax (MRT) is a tax imposed by New York State and New York City on the privilege of recording a mortgage against real property. This tax is typically paid by the borrower at the time of closing. It's a significant closing cost that can add thousands, or even tens of thousands, of dollars to your transaction, making it essential to understand and budget for.
The funds collected from the MRT contribute to both state and city revenues, supporting various public services. While often overlooked by first-time homebuyers, it's a critical component of real estate transactions in the five boroughs.
How the NYC Mortgage Tax is Calculated (Simplified)
The rates for the NYC Mortgage Recording Tax vary based on two primary factors: the type of property and the mortgage amount. There's a state portion and a city portion, which combine to form the total tax rate.
Residential (1-3 Family Homes & Condos)
- Mortgage up to $500,000: The combined rate is 1.80% (0.25% State + 1.55% NYC).
- Mortgage over $500,000: The combined rate increases to 1.925% (0.25% State + 1.675% NYC).
Other Property Types (Co-ops, Commercial, etc.)
For co-op apartments (which are technically shares in a corporation, not real property, but still subject to a similar mortgage tax), commercial properties, and other property types, the rates are generally higher:
- Mortgage up to $500,000: The combined rate is 2.05% (0.25% State + 1.80% NYC).
- Mortgage over $500,000: The combined rate is 2.80% (0.25% State + 2.55% NYC).
It's important to note that these rates apply to the mortgage amount, not the total purchase price of the property.
What is a CEMA and How Can It Save You Money?
A Consolidation, Extension and Modification Agreement (CEMA) is a legal document that allows you to combine an existing mortgage with a new mortgage, typically when refinancing or purchasing a new property with an existing loan. The significant advantage of a CEMA in NYC is that it can substantially reduce the Mortgage Recording Tax.
Instead of paying the MRT on the entire new mortgage amount, a CEMA allows you to only pay the tax on the "new money" being borrowed (i.e., the difference between your new loan amount and the outstanding balance of your existing loan). This can result in considerable savings, especially on larger mortgage amounts. Not all lenders offer CEMA, and there are additional legal fees associated with preparing one, so it's crucial to discuss this option with your attorney and lender.
Using Our NYC Mortgage Tax Calculator
Our calculator simplifies the estimation process:
- Enter Mortgage Amount: Input the total amount of the mortgage you plan to take out.
- Select Property Type: Choose whether your property is a 1-3 Family Home/Condo or a Co-op/Commercial property.
- CEMA Option: If you are refinancing and considering a CEMA, check the "Is this a CEMA?" box.
- Existing Mortgage Amount (for CEMA): If you checked the CEMA box, enter your current outstanding mortgage balance. The calculator will then apply the tax only to the "new money."
- Calculate: Click the "Calculate Tax" button to see your estimated NYC Mortgage Recording Tax.
Important Considerations
While our calculator provides a reliable estimate, please keep the following in mind:
- Estimates Only: This calculator provides an estimate based on current general rates. Actual costs may vary due to specific lender policies, additional fees, or changes in tax law.
- Consult Professionals: Always consult with a qualified real estate attorney and your mortgage lender for precise figures tailored to your unique transaction. They can provide the most accurate breakdown of all closing costs.
- Other Closing Costs: Remember that the Mortgage Recording Tax is just one of many closing costs. Others include title insurance, appraisal fees, attorney fees, transfer taxes (if applicable, like the Mansion Tax for purchases over $1M, which is a separate tax not covered here), and more.
- Tax Law Changes: Tax laws can change. The rates used in this calculator are based on current information as of early 2026.
We hope this tool and information help you better understand and prepare for your NYC real estate journey!