Mortgage Recording Tax (New York)
New York imposes a tax on recording a mortgage, under NY Tax Law §253 plus local additions. For commercial mortgages of $500,000 or more in New York City, the combined rate reaches 2.8% of the loan amount — among the highest closing costs in the country. A $5 million mortgage generates roughly $140,000 of recording tax.
The tax applies to the mortgage amount, not the purchase price, and is typically paid by the borrower. Rates vary by county and loan size outside NYC.
Refinancing borrowers avoid re-paying tax on the existing balance through a CEMA assignment; buyers can sometimes assume and consolidate a seller's existing mortgage for similar savings.