If you are buying a home, condo, or co-op with a mortgage in New York City, the mortgage recording tax is one of the largest line items on your closing statement — and one almost no one explains in plain English before you sit down to sign. It is not the same as the real estate transfer tax. It is not the same as the mansion tax. It is its own creature, paid to the New York City Register (or, on Staten Island, the Richmond County Clerk) the moment your mortgage is recorded.
This 2026 guide walks through what the mortgage recording tax actually is, who pays it, how the rate is calculated from your loan amount, where it sits inside the broader landscape of NYC closing taxes, the exemptions and structures that legally reduce or shift the bill, and the exact form numbers and agency phone numbers to call if a closing statement does not look right.
The Short Answer: What the Mortgage Recording Tax Is and Who Pays It
The mortgage recording tax is a tax New York charges for the privilege of recording a mortgage against real property. Two things matter in that sentence. First, it is triggered by the act of recording — not by the closing, not by the loan itself. Second, it attaches to the mortgage, not to the deed. That is why a co-op apartment in Manhattan does not pay mortgage recording tax (more on that below) and a condo in the same building does.
The tax has two layers stacked on top of each other: a New York State component set by Tax Law §253 and §253-a, and an additional New York City component set by Title 11, Chapter 26 of the NYC Administrative Code. Together they produce the rates buyers see at closing.
For one-to-three family homes and individual condo units in New York City, the buyer pays the mortgage recording tax. For larger residential and commercial properties the structure is similar in practice — the borrower funds the tax — but a portion of the state component is technically the lender’s obligation. If you are buying a 1–3 family home or a condo, plan on the full bill landing on you at closing.
The 2026 NYC Mortgage Recording Tax Rates
The rate depends on the size of your loan, not on the purchase price of the home. This is one of the most common points of confusion at closing. If you put 50% down on a $1 million property, you only pay mortgage recording tax on the $500,000 you are financing.
The combined NYC rates for 2026 are:
- 1.80% on mortgages under $500,000 — for one-to-three family homes and individual condo units.
- 1.925% on mortgages of $500,000 or more — for one-to-three family homes and individual condo units.
- 2.05% on mortgages under $500,000 — for all other properties (commercial, mixed-use, multifamily of four units or more).
- 2.80% on mortgages of $500,000 or more — for all other properties.
Those rates come from stacking the four components the New York State Department of Taxation and Finance lists on its mortgage recording tax page: a basic state tax of 50 cents per $100 of mortgage debt, a special additional state tax of 25 cents per $100, an additional state tax of 25 cents per $100 (30 cents per $100 inside the Metropolitan Commuter Transportation District, which includes all five NYC boroughs), and a city or county tax of 25 to 50 cents per $100 where applicable. New York City layers its own additional 1.00% to 1.75% on top depending on loan size and property type, which is what produces the headline 1.80% / 1.925% / 2.05% / 2.80% figures buyers actually see.
For a one-or-two family residence, the first $10,000 of principal is deducted from the additional state tax calculation. It is a small offset on a large loan, but it is a real one and your title company should already be applying it.
A Worked Example for a 2026 NYC Buyer
Imagine a buyer purchasing a $900,000 condo in Queens with $180,000 down, financing $720,000.
- Loan amount: $720,000
- Property type: individual condo unit (treated as residential 1–3 family equivalent for MRT purposes)
- Mortgage is $500,000 or more, so the 1.925% combined rate applies
- Tax due at recording: $720,000 × 0.01925 = $13,860
That $13,860 is paid the day the mortgage is recorded, not spread over the life of the loan. It is wired to the recording office along with the deed, the mortgage, and the rest of the closing package. ACRIS — the Automated City Register Information System — handles the recording and the calculation for properties in Queens, Brooklyn, Manhattan, and the Bronx. ACRIS includes a Calculate Taxes / Fees tool with a Mortgage Recording Tax tab that lets you confirm the figure your title company gave you. Staten Island filings go through the Richmond County Clerk in person.
The Forms You Will See on Your Closing Package
Two state forms are tied to the mortgage recording tax. You will not personally fill them out — your title company does — but you should know what they are because they appear on the recording cover sheet.
Form MT-15, Mortgage Recording Tax Return. This is the official return that accompanies the mortgage when it is recorded. The current version is hosted at tax.ny.gov/pdf/current_forms/mortgage/mt15.pdf and includes a current list of jurisdictional rates. MT-15 is technically required only when the property sits in more than one locality with different rates, but most title companies prepare it as a matter of course.
Form MT-15.1, Application for Refund of Mortgage Recording Tax. If a tax was paid in error — most commonly because an exemption was missed, or because a refinance qualified for a CEMA structure that was not used — the borrower can file MT-15.1 within two years of the date the recording office received the erroneous payment. A refund application that arrives on day 731 is denied; this is one of the strictest deadlines in the closing-tax landscape.
If you have a question about MT-15 or MT-15.1, the New York State Department of Taxation and Finance technical assistance line for these forms is 518-457-8637. The general taxpayer line for forms by mail is 518-457-5431.
The Single Largest Way New Yorkers Reduce This Tax: CEMA
If you are refinancing rather than purchasing, or if you are buying a home from a seller who still has a recorded mortgage on the property, you may be able to avoid paying mortgage recording tax on the portion of the new loan that is rolled over from the old one. The structure is called a Consolidation, Extension, and Modification Agreement — known by every NYC closing attorney simply as a CEMA.
The mechanics are straightforward in concept and complicated in execution. Instead of paying off the seller’s old mortgage and recording a brand-new one, the lender assigns the existing mortgage to your new lender. Your new lender writes a smaller \”gap mortgage\” to cover the difference between the old loan balance and your new one, and the two are then consolidated and modified into a single new loan. Mortgage recording tax is only paid on the gap.
On the $720,000 loan example above, if the seller still had $400,000 outstanding on a CEMA-eligible mortgage, the gap is $320,000 and the mortgage recording tax becomes $320,000 × 0.01925 = $6,160 instead of $13,860 — a savings of $7,700. CEMA is not free. Lender legal fees, processing fees, and the seller’s cooperation all factor in, and the savings on smaller loans can disappear into the fee load. On large loans the math almost always works.
Co-op apartments do not pay mortgage recording tax at all. A co-op buyer does not get a mortgage on real property — they get a share loan secured by stock and a proprietary lease, which is technically personal property. That is why co-ops, even very expensive ones, are exempt from this tax. It is the single biggest reason a $2 million co-op closing has dramatically lower transaction costs than a $2 million condo closing in the same neighborhood.
Every Other Closing Tax a NYC Buyer Should Know About
The mortgage recording tax is one item in a longer list. The full closing-tax landscape for a typical NYC buyer in 2026 includes:
The NYC Real Property Transfer Tax (RPTT). Paid by the seller in most residential transactions, but worth knowing about because it sometimes gets passed back to the buyer in negotiated deals or sponsor sales of new construction. Imposed under Title 11, Chapter 21 of the NYC Administrative Code. Rate is 1.00% on residential transfers up to $500,000 and 1.425% above $500,000, with higher rates for commercial property. Filed on Form NYC-RPT.
The New York State real estate transfer tax. Also a seller’s tax in most cases, governed by Tax Law Article 31. Rate is $2.00 per $500 of consideration (0.40%). Filed on Form TP-584.
The mansion tax. Paid by the buyer on residential purchases of $1 million or more. Tiered from 1.00% to 3.90% depending on price under the schedule the State enacted in 2019 and that remains in effect for 2026. Triggered at the $1 million threshold and stepping up at $2 million, $3 million, $5 million, $10 million, $15 million, $20 million, and $25 million. Filed on Form TP-584. The mansion tax was the focus of yesterday’s Property & Tax Help post; this guide focuses on the mortgage recording side.
The NYC and NYS mortgage recording tax. The subject of this guide.
Title insurance premiums and recording fees. Not technically taxes, but bundled into the closing tax line because they hit the same wire. Lender’s title insurance is typically required; owner’s title insurance is optional but customary. Recording fees are set by the city register and run a few hundred dollars per document.
How the Bill Hits Your Closing Statement
Your title company prepares the recording package and the mortgage recording tax wire is sent at the same time as the deed and the mortgage. On a Closing Disclosure (the standard federal form mortgage borrowers receive at least three business days before closing), the mortgage recording tax appears in section E, Taxes and Other Government Fees. It will be itemized as something like \”NY State Mortgage Recording Tax\” and \”NYC Mortgage Recording Tax\” on two lines, or as a single combined figure depending on the lender.
If the figure on your Closing Disclosure does not match what you computed from your loan amount, ask your closing attorney before signing. The most common discrepancies come from the lender forgetting to apply the $10,000 residential deduction on the additional tax, or from a CEMA structure that was negotiated and then not actually executed at closing.
Refunds, Disputes, and Where to Call
If you discover after closing that you overpaid — most often because an exemption was missed or because a CEMA was contemplated and then dropped — file Form MT-15.1 with the New York State Department of Taxation and Finance within two years.
For questions specifically about how the tax was calculated at recording in Queens, Brooklyn, Manhattan, or the Bronx, contact the NYC Department of Finance at 311 (or 212-NEW-YORK / 212-639-9675 from outside the five boroughs) and ask for the Office of the City Register. For Staten Island filings, contact the Richmond County Clerk at 718-675-7700.
For questions about the state-level components of the tax, the form, or a refund application, call the New York State Department of Taxation and Finance at 518-457-8637.
Mortgage Recording Tax FAQ
Does the mortgage recording tax apply to a HELOC or a home equity loan?
Yes. Any mortgage recorded against NYC real property triggers the tax, including a home equity line of credit or a home equity loan. The tax is computed on the maximum principal amount of the line, not on the current balance.
Does it apply to a co-op apartment?
No. Co-op share loans are secured by stock and a proprietary lease rather than by real property, and the mortgage recording tax does not apply. This is a defining structural difference between buying a co-op and buying a condo in NYC.
Who pays it on a 1–3 family home or condo purchase?
The buyer. A small portion of the state component is technically a lender obligation in some structures, but in practice the buyer funds the entire tax at closing on a residential 1–3 family or condo purchase.
Can a seller agree to pay it as a concession?
Yes, in theory. Closing-cost concessions are negotiated all the time, and a seller credit can be written to offset the mortgage recording tax. The recording office still collects the tax from the buyer at recording — the seller credit just shifts the economics.
Does refinancing trigger a fresh mortgage recording tax?
Only on the new money. With a properly executed CEMA, the existing mortgage balance is rolled into the new loan and tax is paid only on the gap. Without a CEMA, the full new loan is taxed.
What is the deadline to apply for a refund if I overpaid?
Two years from the date the recording office received the erroneous payment. Form MT-15.1 must be filed by then or the refund is denied as untimely.
Where can I confirm the exact rate before closing?
The combined NYC and NYS rates and the calculation tool live on the New York City Department of Finance mortgage recording tax page. ACRIS includes a Calculate Taxes / Fees button with a Mortgage Recording Tax tab.
Bottom Line
The mortgage recording tax is the single largest closing tax most NYC buyers pay, dwarfing the title insurance line and rivaling the broker commission on smaller transactions. The rate depends on your loan amount, not your purchase price. The buyer pays it on residential 1–3 family and condo purchases. Co-ops are exempt. Refinances and seller-mortgage-assumption purchases can dramatically reduce it through a CEMA structure. The deadline to recover an overpayment is two years and not a day longer.
If you are within thirty days of a NYC closing and the mortgage recording tax line on your Closing Disclosure does not match what you computed from your loan amount, do not sign until your attorney has explained the gap. The figure is large enough to be worth the phone call.
Tax advice in this article is informational. Consult a tax professional or the NYC Department of Finance for your specific situation.
Primary Sources
- NYC Department of Finance — Mortgage recording tax
- NYS Department of Taxation and Finance — Mortgage recording tax
- Form MT-15, Mortgage Recording Tax Return (PDF)
- ACRIS — Automated City Register Information System
- NY Tax Law §253 and §253-a; NYC Administrative Code Title 11, Chapter 26
