Transfer Taxes & Mansion Tax When Selling In NHP

Thinking about selling your home in New Hyde Park and wondering what you’ll actually net after taxes and fees? You are not alone. Transfer taxes and the state mansion tax can feel confusing, especially if your sale hovers near the million‑dollar mark. In this guide, you’ll learn exactly which taxes apply in New Hyde Park, who typically pays them, how they are handled at closing, and simple ways to plan your budget with confidence. Let’s dive in.

What transfer taxes apply in New Hyde Park

New Hyde Park sits in Nassau County, outside New York City. That means New York State’s real estate transfer tax applies, and the separate state mansion tax can apply to high‑value residential sales. New York City’s transfer taxes do not apply to properties in New Hyde Park.

State transfer tax: 0.4% of the price

New York State imposes a transfer tax of 0.4% of the consideration. In most residential sales, that is the sale price. This tax is imposed by law on the grantor, which is the seller. Parties can negotiate a different allocation in the contract, but sellers typically fund this tax from their proceeds at closing.

Mansion tax: 1% at $1,000,000 and above

If your buyer is purchasing for $1,000,000 or more, the state mansion tax applies at a flat 1%. This tax is imposed on the purchaser and is normally paid by the buyer at closing. While parties can agree otherwise, buyers should plan to fund it unless the contract states a different arrangement.

Who pays what at closing

What sellers typically cover

• State transfer tax at 0.4% of the sale price.
• Any agreed credits or concessions outlined in the contract.
• Standard seller closing costs like your attorney’s fee and broker commission, as applicable.

What buyers typically cover

• Mansion tax at 1% if the sale price is $1,000,000 or more.
• Buyer’s standard closing costs such as title insurance, lender fees, and recording charges.

Can you negotiate these costs

You can. The state assigns each tax to a specific party by default, but your contract can reallocate closing costs. It is less common to shift the mansion tax from buyer to seller, yet it can happen. Make sure the contract and your net sheet clearly reflect who pays each tax.

How these taxes are filed and paid

The TP‑584 form at recording

Both the state transfer tax and the mansion tax are reported on the New York State TP‑584 form. The deed cannot be recorded without the required documentation and payments. Your closing team will prepare the TP‑584, calculate the taxes due based on the sale price and any exemptions, and submit everything to the Nassau County Clerk when recording the deed.

Timing and escrow in Nassau County

These taxes are collected at closing and remitted with your recording package. Title companies and attorneys typically collect the funds in escrow, confirm amounts, and submit the completed TP‑584 and payment to the county clerk. If the paperwork or payment is incomplete, the deed can be refused for recording.

Exemptions and special cases

New York State recognizes certain exemptions, such as some transfers involving government entities, transfers incident to divorce, and certain no‑consideration transfers, among others. Whether an exemption applies depends on the facts of your transaction and the specific language in the TP‑584 instructions. Your attorney or title company will confirm eligibility and gather any required documentation.

Real examples for common price points

• Example A: Sale price $900,000

  • State transfer tax (0.4%): $3,600 paid by the seller unless reallocated by contract.
  • Mansion tax: Not applicable (below $1,000,000).

• Example B: Sale price $1,000,000

  • State transfer tax (0.4%): $4,000 typically paid by the seller.
  • Mansion tax (1%): $10,000 typically paid by the buyer.

• Example C: Sale price $1,200,000

  • State transfer tax (0.4%): $4,800 typically paid by the seller.
  • Mansion tax (1%): $12,000 typically paid by the buyer.

These taxes are separate from other closing costs like lender charges, title insurance, or attorney’s fees. Your settlement statement will itemize each line so you can see who pays what.

Planning tips for New Hyde Park sellers

1) Build a clear net sheet early

Ask your agent to create a net sheet that includes the 0.4% state transfer tax and any expected credits or concessions. If your pricing strategy targets $1,000,000 or above, factor in the buyer’s mansion tax. Buyers may ask for a credit to offset part of their mansion tax in negotiations, so plan ahead.

2) Be precise about contract allocation

Confirm in writing who pays each tax. The default is seller for transfer tax and buyer for mansion tax, but the contract controls. Clear language prevents surprises on closing day.

3) Price strategically around the $1,000,000 line

Crossing the threshold by even a small amount triggers a 1% buyer tax. If you expect multiple offers near that level, know that some buyers may prefer to bid just under the threshold, or they may request a seller credit to offset the mansion tax. Your pricing and negotiation plan should account for this dynamic.

4) Confirm the TP‑584 and any exemptions

If your transaction might qualify for an exemption, flag it early. Make sure the right boxes are checked on the TP‑584 and that your attorney or title company has the proper documentation. That keeps recording smooth and avoids delays.

5) Align funds and timing with your closing team

Work with your title company and attorney to confirm total amounts due, the payment method, and when funds must be available. If funds are short or paperwork is incomplete, recording can be delayed and your closing timeline can slip.

6) Remember co‑ops and condos

Transfers of co‑op shares or condo units can also trigger the state transfer tax and, at or above $1,000,000, the mansion tax. If you are selling a co‑op or condo, your closing team will use the same TP‑584 process and confirm how the taxes apply.

Local notes for Nassau County sellers

• New York City transfer taxes do not apply to New Hyde Park properties because the village is outside NYC limits.
• Local offices may have specific recording fees or procedures. Your title company or attorney will coordinate with the Nassau County Clerk regarding current requirements.
• New York State uses the TP‑584 reporting process for these taxes, not documentary stamp systems used in some other states.

Avoid common mistakes

• Not budgeting for the 0.4% state transfer tax. That amount can be material when you map your net proceeds.
• Confusion when the buyer requests a credit for the mansion tax. While the mansion tax is typically a buyer cost, a concession can be a negotiating tool. Decide your policy on this early.
• Missing the $1,000,000 trigger. Even small pricing changes can shift buyer behavior if the mansion tax comes into play.
• Assuming an exemption applies without documentation. Exemptions depend on facts and must be properly supported on the TP‑584.
• Waiting too long to finalize forms. Incomplete or incorrect paperwork can stall recording and postpone closing.

What to expect on closing day

• Your attorney or title company will present the deed, TP‑584, and other documents for recording.
• The state transfer tax and any mansion tax funds are collected and remitted at or before deed recording.
• If everything is in order, the county clerk records the deed and the transaction is complete.

Work with a local team you trust

Understanding who pays what, how the TP‑584 works, and how the $1,000,000 threshold affects offers can give you a real edge when selling in New Hyde Park. With a clear plan, you can set the right price, anticipate buyer questions about the mansion tax, and avoid last‑minute surprises.

If you are considering a sale, get a pricing strategy and a clean net sheet tailored to your home and timeline. Connect with The Evangelista Team for hyperlocal guidance, full transaction management, and to Get Your Free Home Valuation.

FAQs

Who pays New York’s 0.4% state transfer tax in New Hyde Park

• The tax is imposed on the seller by state law, though the contract can reallocate payment.

Who pays the state mansion tax on a $1,000,000+ sale in New Hyde Park

• The mansion tax is imposed on the buyer and is typically paid by the buyer at closing unless the contract says otherwise.

Does the mansion tax apply at exactly $1,000,000 in New Hyde Park

• Yes. The 1% mansion tax applies when the sale price is $1,000,000 or more.

Are NYC transfer taxes charged on New Hyde Park sales

• No. New Hyde Park is outside New York City, so NYC transfer taxes do not apply.

What form reports these taxes at closing in Nassau County

• Form TP‑584 is used to report the state transfer tax and, if applicable, the mansion tax when recording the deed.

Can a sale be recorded if taxes or forms are missing in New Hyde Park

• The county clerk can refuse to record the deed if required documentation or payments are not provided.