New York Mortgage Guide 2026

Buying a home in New York involves costs that most other states simply don't have. A mortgage recording tax. A tiered mansion tax. A state real estate transfer tax that sellers typically bear. And property taxes that swing from among the highest in the country on Long Island and in Westchester County to far more manageable levels upstate. Before you run a payment estimate, you need to know which of these apply to your deal.

This guide covers the numbers you'll actually encounter — property tax rates by region, closing cost line items unique to New York, the SONYMA programs available through New York's housing finance agency, and a sample payment breakdown for a median-priced home. Figures labeled "estimate" are illustrative; get lender-specific numbers before making any financial decisions.

New York Property Taxes

New York's statewide effective property tax rate on owner-occupied housing is 1.30%, according to the Tax Foundation — placing the state among the highest in the nation. But that average is almost meaningless for planning purposes, because the range within the state is severe.

Long Island's Nassau and Suffolk counties are consistently among the most expensive in the country. Westchester, Rockland, and Putnam counties north of New York City run comparably high. Monroe County (Rochester) has been measured around 2.41%, while some downstate urban counties clock in lower because assessed values are high relative to the tax bill. Kings County (Brooklyn) sits well below the statewide average on an effective-rate basis.

New York also has a homeowner exemption called the Basic STAR (School Tax Relief) program, which reduces the assessed value subject to school taxes for primary residences. An Enhanced STAR is available for homeowners 65 and older who meet income limits. These exemptions can take hundreds of dollars per year off your bill, but you have to apply — they aren't automatic for new buyers.

Closing Costs, Mortgage Recording Tax & Transfer Taxes in New York

New York closing costs run higher than most states, primarily because of taxes that don't exist elsewhere. Budget for the following:

Mortgage Recording Tax

This is one of the most significant buyer costs unique to New York. When you record a mortgage on real property, the state and local governments charge a tax on the loan amount. In New York City, the rate is 1.8% on loans below $500,000 and 1.925% on loans of $500,000 or more. Outside the five boroughs, rates vary by county but are generally lower. Co-op purchases are exempt because co-ops transfer shares rather than real property, so no mortgage is recorded.

On a $400,000 loan in NYC, the mortgage recording tax runs roughly $7,200. On a $700,000 loan, expect about $13,475. This is a closing-day cost, paid from cash — it cannot be rolled into the loan.

New York State Real Estate Transfer Tax

The state imposes a transfer tax of $2 for every $500 (or fraction thereof) of the sale price — effectively 0.4%. This is typically a seller cost, though it can be negotiated. On a $500,000 sale, that's $2,000. For sales of $3 million or more in New York City, an additional $1.25 per $500 applies, raising the combined rate.

New York City Transfer Tax

In addition to the state transfer tax, NYC imposes its own: 1% on properties below $500,000 and 1.425% on properties $500,000 and above. Sellers typically pay this, though in new development transactions it is frequently passed to buyers.

The Mansion Tax

Any residential purchase of $1 million or more in New York State triggers a buyer-paid surcharge. The base rate is 1% on purchases from $1 million up to (but not including) $2 million. In New York City, the rate escalates through eight brackets — from 1.25% at $2 million to 3.9% on purchases of $25 million or more. The mansion tax is calculated on the full purchase price and applies statewide, not just in the city.

Typical Total Buyer Closing Costs

Outside of taxes, buyers face standard closing costs: lender fees, title insurance, attorney fees (attorneys are required at closing in New York), homeowners insurance prepaid, and escrow setup. All-in, buyer closing costs in New York City typically run 4% of the purchase price for condos and houses (when financing), around 2% for co-ops, and 6% or more on new development where transfer taxes are often buyer-paid. Upstate, costs are lower without NYC's local taxes but still typically exceed the national average due to the state mortgage recording tax.

First-Time Buyer & Down Payment Assistance Programs

New York's housing finance agency, the State of New York Mortgage Agency (SONYMA), operates under New York Homes & Community Renewal (HCR). SONYMA offers below-market fixed-rate mortgages and paired down payment assistance specifically for first-time buyers — defined as anyone who hasn't owned a primary residence in the past three years. (Properties in federally designated target areas are often available to repeat buyers as well.)

All SONYMA loans require completion of a homebuyer education course. You'll work with a participating lender — not directly with SONYMA — to apply. Rates change periodically; check hcr.ny.gov/current-rates for current figures.

Achieving the Dream

SONYMA's lowest-rate program, designed for borrowers at or below 80% of area median income. Offers a 30-year fixed-rate mortgage with no points and a down payment requirement as low as 3%. The program features 120-day rate locks on existing housing. Borrowers using the paired Down Payment Assistance Loan (DPAL) pay a slightly higher interest rate — roughly 0.40% above the standard rate — to subsidize the assistance.

Low Interest Rate Program

SONYMA's second core mortgage program functions similarly to Achieving the Dream but carries higher household income limits, opening it to more moderate-income buyers. Down payment requirements and 30-year fixed-rate terms are comparable. This program is a good fit for buyers who earn too much for Achieving the Dream but still want below-market financing.

Down Payment Assistance Loan (DPAL)

Available as an add-on to either core SONYMA mortgage, the DPAL provides the greater of $3,000 or 3% of the purchase price, up to $15,000, at 0% interest with no monthly payments. The loan is forgiven after ten years of occupancy. For lower-income Achieving the Dream borrowers, DPAL Plus ATD offers up to $30,000 in assistance.

Homes for Veterans

Available to eligible veterans and their spouses, this program provides interest rates 0.375% below the already-reduced SONYMA rate with down payment assistance attached. Down payment assistance mirrors the standard DPAL terms. No VA loan benefit is required; the program runs through SONYMA's standard underwriting.

Graduate to Homeownership

Targeted at recent college graduates purchasing in qualifying upstate New York communities. Buyers must have earned an associate, bachelor's, master's, or doctoral degree within the past 48 months from a U.S. Department of Education-recognized program. The program pairs low SONYMA rates with down payment assistance as an incentive for graduates to buy and stay upstate.

Sample Monthly Payment for a New York Home

The numbers below are estimates only, intended to show payment structure — not to predict your actual costs. Home prices vary enormously across the state; so do tax rates, insurance costs, and applicable loan programs. Run your own figures using the calculator linked below.

Assumptions used: New York statewide median home price of approximately $430,000 (based on NYSAR data through mid-2025; upstate median is considerably lower, NYC and Long Island significantly higher). Ten percent down payment; 30-year fixed rate at 6.75% (illustrative, not a current quote). Statewide average effective property tax rate of 1.30% (Tax Foundation). Homeowners insurance estimate of $1,700/year (low end of common range; actual costs vary by location and coverage).

If you're buying on Long Island or in Westchester at the actual local tax rate (potentially 2%+), the property tax line alone could run $700–$900 per month on this price point. Conversely, upstate buyers at the same price with a lower local rate would see substantially less. Use the calculator to model your specific county rate.