On April 12, 2019, New York Governor Andrew Cuomo signed New York’s 2019-2020 budget into law. One section of the new law will increase the transfer tax rates that apply to real estate transactions in New York City. The combined New York State and New York City transfer tax rates may approach 6% of the sales price for some residential transactions.
The new transfer tax rates are effective for property transfers on or after July 1, 2019. There is a limited grandfathering rule that exempts transfers made pursuant to a binding written contract entered into before or on April 1, 2019, provided that the contract’s execution date is confirmed by a recording of the contract, payment of a deposit, or other independent evidence.
