Mortgage Recording Tax New York City: A Comprehensive Guide

Navigating mortgage recording tax in New York City can be a daunting task, but it doesn't have to be. This comprehensive guide will provide you with everything you need to know about this essential tax, including its calculation, exemptions, and due dates.

What is Mortgage Recording Tax?

Mortgage recording tax is a local tax imposed on the recording of a mortgage document. In New York City, the tax rate is 1.85% of the mortgage amount. This means that if you take out a mortgage of $500,000, you will pay $9,250 in mortgage recording tax.

Who is Responsible for Paying Mortgage Recording Tax?

The borrower is typically responsible for paying the mortgage recording tax. However, the lender may agree to pay the tax on behalf of the borrower. It is important to check with your lender to determine who will be responsible for paying the tax.

Exemptions from Mortgage Recording Tax

There are a few exemptions from the mortgage recording tax in New York City. These exemptions include:

• Mortgages for the purchase of a primary residence
• Mortgages for the refinancing of a primary residence
• Mortgages for the purchase of a cooperative apartment
• Mortgages for the purchase of a condominium unit

How to Calculate Mortgage Recording Tax

You can calculate your mortgage recording tax by multiplying the amount of your mortgage by the tax rate of 1.85%. For example, if you take out a mortgage of $500,000, your mortgage recording tax would be $9,250.

Due Dates for Mortgage Recording Tax

Mortgage recording tax is due within 30 days of the recording of the mortgage document. If you do not pay the tax on time, you may be subject to penalties and interest.

Pros and Cons of Paying Mortgage Recording Tax

There are both pros and cons to paying mortgage recording tax.

Making the Right Choice

Whether or not you decide to pay mortgage recording tax is a personal decision. It is important to weigh the pros and cons carefully before making a decision.

FAQs About Mortgage Recording Tax

Q: How much is the mortgage recording tax in New York City?
A: The mortgage recording tax in New York City is 1.85% of the mortgage amount.

Q: Who is responsible for paying the mortgage recording tax?
A: The borrower is typically responsible for paying the mortgage recording tax. However, the lender may agree to pay the tax on behalf of the borrower.

Q: Are there any exemptions from the mortgage recording tax?
A: Yes, there are a few exemptions from the mortgage recording tax in New York City. These exemptions include:

• Mortgages for the purchase of a primary residence
• Mortgages for the refinancing of a primary residence
• Mortgages for the purchase of a cooperative apartment
• Mortgages for the purchase of a condominium unit

Success Story:

"I was able to save $9,250 on my mortgage recording tax by using the exemption for first-time homebuyers. This was a huge help in making my dream of homeownership a reality." - Sarah J.

Call to Action:

If you are planning to take out a mortgage in New York City, it is important to be aware of the mortgage recording tax. By following the tips in this guide, you can save money and avoid delays in the closing process.

Additional Resources:

• New York City Department of Finance
• New York State Department of Taxation and Finance