Who Pays Closing Costs in New York? What Long Island Buyers and Sellers Actually Pay at the Table (2026)

Who pays closing costs in New York, the buyer or the seller?

Both do, but the buyer pays more of them. In New York the buyer pays the costs tied to the loan and the title: mortgage recording tax, title insurance, lender and bank attorney fees, and recording fees. The seller pays the state transfer tax, the broker commission, and the cost of clearing the existing mortgage. Each side pays its own lawyer.

One caution before the numbers. This table shows custom and the statutory default. A contract can shift almost any line, and a seller credit toward the buyer's costs is common in a slow market. That negotiation happens at contract, which in New York is drafted by the attorneys. By the time you are looking at a closing statement, the argument is over.

How much are closing costs for a buyer on Long Island?

A financed buyer on Long Island should plan for the mortgage recording tax at 0.80% of the loan, title insurance that commonly runs several thousand dollars, a $1,500 to $3,000 attorney fee, lender charges, recording fees, and several months of property taxes and insurance collected up front for escrow. A cash buyer skips the mortgage tax and every lender charge.

Take a $750,000 house in Nassau County with 20% down and a $600,000 mortgage. The mortgage recording tax is $4,770. Title insurance comes in two policies, one protecting you and one protecting the lender, and the premium is set by rates filed with the state, so shopping title companies on price does very little. Then come the lender's own charges, the bank attorney, the appraisal, the survey if a new one is needed, and the county's fees for recording the deed and mortgage.

The line that surprises people most is not a fee at all. It is the escrow account. Long Island property taxes are high, and the lender will collect months of them at the table along with the first year of homeowner's insurance. It is your money sitting in your account, but it is cash you need on closing day.

How much are closing costs for a seller in New York?

A New York seller pays state transfer tax of $2 per $500 of the sale price, the broker commission, an attorney fee of about $1,500 to $3,000 on Long Island, and the cost to pay off and satisfy any existing mortgage. On a $750,000 sale the transfer tax is $3,000. The commission is almost always the largest number.

The transfer tax is set by Tax Law 1402 and it is the seller's obligation. If the seller does not pay it, the state can look to the buyer, which is why the title company collects it at the table and will not close without it. It is due within 15 days of the deed being delivered.

The commission is whatever the listing agreement says, and it is negotiable before you sign that agreement, not after. Since the 2024 changes in how buyer's agents are compensated, sellers should also expect the question of who pays the buyer's broker to come up in the offer itself.

What is the mortgage recording tax in Nassau and Suffolk County?

The mortgage recording tax in Nassau and Suffolk County is 1.05% of the mortgage amount. On a one to six family residence the lender must pay 0.25% of that, so the buyer pays 0.80%. On a one or two family home the first $10,000 of the loan is exempt from one piece of the tax, which takes $30 off the bill.

The 1.05% is three state taxes stacked together under Tax Law 253: a basic tax of 0.50%, a special additional tax of 0.25%, and an additional tax of 0.30% that applies in the counties of the Metropolitan Commuter Transportation District, which includes both Nassau and Suffolk. The statute puts the 0.25% special additional tax on the lender for residential property with up to six units, and the lender is not allowed to pass it to the borrower.

What that looks like for a buyer of a one or two family house:

The tax is on the loan, not the price. Borrow less and you pay less. Pay cash and you pay none. And a co-op purchase carries no mortgage recording tax at all, because a co-op loan is secured by shares in a corporation, not by a mortgage on real property.

What is the mansion tax in New York, and who pays it?

The mansion tax is an additional 1% transfer tax on residential sales of $1,000,000 or more, and the buyer pays it. Under Tax Law 1402-a it applies to one, two and three family houses, individual condominium units and co-op apartments. It is charged on the entire purchase price, not only the amount over $1,000,000.

That last sentence is the $1 million trap. A purchase at $999,999 owes no mansion tax. A purchase at $1,000,000 owes $10,000. One dollar of price costs the buyer ten thousand dollars of tax, which is why asking prices tend to bunch just under the million dollar mark. A buyer who is about to bid a few thousand dollars over a million should stop and do that arithmetic first.

Do not try to solve it by writing a lower price in the contract and paying the difference on the side. The tax return filed at closing reports the real consideration, and misstating it means signing a false tax filing.

One more point of confusion. The higher mansion tax tiers that start at $2 million apply only in New York City. In Nassau and Suffolk the rate is a flat 1% at any price of $1,000,000 or more. If the buyer does not pay it, the statute makes the seller liable, so sellers of million dollar homes have their own reason to confirm it is on the closing statement.

What is the Peconic Bay tax, and who pays it?

The Peconic Bay Region Community Preservation Fund tax is a transfer tax paid by the buyer in the five East End towns of Suffolk County. The rate is 2% in Riverhead and 2.5% in East Hampton, Southampton, Shelter Island and Southold, where a 0.5% community housing tax was added on April 1, 2023.

The tax is figured on the purchase price after a town exemption, and the exemption amount depends on which town the property is in and whether the land is improved. There is also a first-time homebuyer exemption with income and price limits. Your attorney or title company will run the exact figure for the specific parcel.

Buyers moving east from Nassau or western Suffolk are regularly caught off guard by this one. Nothing like it exists in the rest of Long Island, and on a North Fork or Hamptons purchase it is often the largest single closing cost. It is paid to the Suffolk County Clerk when the deed is recorded, and the deed does not get recorded without it.

Can I lower my closing costs in New York?

Yes, within limits. The taxes are fixed by statute and title insurance rates are regulated, so the savings come from the structure of the deal: negotiating a seller credit, borrowing less, asking about a purchase CEMA, comparing lender fees, and staying on the right side of the $1,000,000 mansion tax line.

A seller credit is the most direct tool. The seller agrees in the contract to credit the buyer a fixed amount toward closing costs. Lenders cap how large that credit can be depending on the loan type, so clear it with the loan officer before it goes in the contract.

A purchase CEMA (consolidation, extension and modification agreement) is the one that can move the mortgage tax itself. If the seller has an existing mortgage, the buyer's lender can in some deals take an assignment of it, and the buyer then pays mortgage recording tax only on the new money. It requires both lenders to cooperate, it adds fees and time, and many lenders will not do it. On a large loan it is worth one phone call to find out.

When are closing costs paid in New York?

Closing costs are paid at the closing itself, not at contract. In New York the buyer typically puts down about 10% of the price when the contract is signed, which is held in escrow by the seller's attorney. The balance of the price and all closing costs are paid at the closing table, usually 60 to 90 days later.

Federal rules require the lender to deliver a Closing Disclosure at least three business days before closing. That document is the final number. Compare it against the Loan Estimate and ask about anything that grew. Your attorney will also tell you how the funds must arrive, typically by wire or bank check. Wire fraud aimed at closings is real, so confirm wiring instructions by calling a phone number you already know, never one from an email.

None of this is advice on your particular deal. The contract, the lender and the town all change the math. But if you understand the table at the top of this page before you sign a contract, you will not be surprised at the closing.