The NYC Mortgage Recording Tax, Explained (and 3 Ways to Pay Less)

The mortgage recording tax (MRT) is the single most painful closing cost in New York City: 1.8% to 1.925% of your loan amount, paid by the buyer when the mortgage is recorded. On a $600,000 loan, that is $11,550 — often more than your attorney, title and appraisal combined.

The rates

Technically the total NYC rate is higher, but the lender pays 0.25% of it; the figures above are what you pay. Note the jump at $500,000 applies to the whole loan: borrowing $499,999 costs $9,000; borrowing $500,000 costs $9,625.

Why co-op buyers do not pay it

The MRT applies to mortgages recorded against real property. When you buy a co-op, you buy shares in a corporation, and your loan is secured by those shares — no recorded mortgage, no MRT. On a $600,000 loan this quietly saves $11,550, which partially offsets co-ops' stricter down payment rules.

Three legitimate ways to pay less

1. Buy a co-op. As above — the tax simply does not apply.
2. Use a CEMA (Consolidation, Extension and Modification Agreement). When the seller has an existing mortgage, your lender can "assume and consolidate" it, so you pay MRT only on the new money — the difference between your loan and the seller's balance. On a $600,000 loan where the seller owes $400,000, you pay tax on $200,000: $7,700 saved. CEMAs cost $1,500-$3,000 in fees and add 30-60 days, and both lenders must cooperate — but on large loans it is usually worth asking.
3. Borrow less. Every $100,000 less of mortgage saves $1,925. If you are close to a bracket, weigh a slightly larger down payment.

How it fits into your total closing picture

For NYC buyers, MRT + mansion tax (if $1M+) + attorney + title typically lands between 3% and 5% of the purchase price — all cash at closing. Our mortgage calculator computes the MRT and mansion tax automatically for your exact loan.