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New York · Tax Law §253New York mortgage recording tax: the three state-level parts, who pays each, and the $10,000 exclusion

New York's mortgage recording tax is charged on the principal debt a recorded mortgage secures, per $100 and each remaining major fraction, in layers. The basic tax is 50 cents (N.Y. Tax Law §253(1)). A special additional tax of 25 cents applies to each mortgage except one where the lender is a natural person or a credit union and the property has six or fewer dwelling units; on property principally improved by six or fewer units, it is paid by the lender and may not be passed on to the borrower except as the article allows (§253(1-a)(a)). An additional tax of 25 cents applies in counties outside the Metropolitan Commuter Transportation District and 30 cents inside it, excluding the first $10,000 of the debt when the property is a one- or two-family residence (§253(2)(a)). Cities of one million or more – New York City – may impose their own mortgage recording tax by local law (§253-a), and the total rate depends on where the property is.

The state-level layers (per $100 of debt)

  1. 1. Basic (§253(1))

    50 cents.

  2. 2. Special additional (§253(1-a))

    25 cents – paid by the lender on one-to-six unit homes, unless the lender is a person or credit union exempt from it.

  3. 3. Additional (§253(2)(a))

    25 cents outside the MCTD, 30 cents inside; first $10,000 excluded for one- and two-family homes.

  4. 4. New York City (§253-a)

    The city may add its own tax by local law.

What the TC can do

  • Check the loan estimate and closing disclosure for the mortgage recording tax and who pays each part.
  • For a one- or two-family home, confirm the $10,000 exclusion is applied to the additional tax.
  • Ask the title company for the county's total rate – it depends on the location.

Questions about the New York mortgage recording tax

Who pays the New York mortgage recording tax?

The borrower pays the basic and additional taxes; the 25-cent special additional tax is paid by the lender on property with six or fewer units, unless the lender is a natural person or credit union exempt from it (N.Y. Tax Law §253(1)–(2)).

Is there an exemption for the first $10,000 in New York?

For a one- or two-family residence, the first $10,000 of the debt is excluded from the additional tax under §253(2)(a).

Related guides

Track the closing costs and who pays them as tasks in ClosingCode, each with an owner and a due date.

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Source: New York Tax Law §§253 and 253-a (nysenate.gov, read October 26, 2026).

General information, not tax or legal advice. ClosingCode is software; it is not a law firm or tax adviser. This guide is not a substitute for the advice or services of an attorney.