Trying to figure out which taxes will show up at your Merrick closing? You are not alone. Between New York’s transfer tax, the 1% mansion tax at higher price points, and Nassau County’s mortgage recording tax, the totals can add up fast. This guide breaks each item down in plain English so you can plan your cash to close with confidence. Let’s dive in.
What applies in Merrick
Merrick is in Nassau County, New York State. You do not pay New York City-specific transfer or mortgage taxes here. The main taxes you will see are the New York State real estate transfer tax, the state’s 1% mansion tax if your price meets the threshold, and the Nassau County mortgage recording tax if you finance the purchase. Other closing line items like title insurance, attorney fees, and county clerk recording fees are separate.
NY State transfer tax: the basics
New York State imposes a real estate transfer tax. The standard rate is $2 for each $500 of consideration, which equals 0.4% of the purchase price. You can calculate it by multiplying the price by 0.004. For example, on a $750,000 home, the state transfer tax is $3,000.
Who pays can be set by the contract. The statute places duties on the transferor, but local custom and your agreement decide how the cost is allocated. Always check your contract and the closing statement.
NY mansion tax at $1,000,000+
New York’s “mansion tax” is a 1% surcharge on residential conveyances when the purchase price is $1,000,000 or more. The 1% is applied to the full price once you meet the threshold. For example, if you buy at $1,200,000, the mansion tax is $12,000.
This surcharge is separate from the 0.4% state transfer tax. In practice, the mansion tax is commonly paid by the buyer, but you should confirm what your contract states.
Mortgage recording tax in Nassau County
If you take out a mortgage, you will pay a mortgage recording tax when the mortgage is recorded with the county clerk. This tax is based on the loan amount, not the purchase price. It includes a state component plus county components set by Nassau County.
Rates can change. For accurate planning, confirm the current Nassau County schedule before closing. Your lender, title company, or closing attorney will calculate the exact tax and include it on your Loan Estimate and final Closing Disclosure.
Here is how it is generally calculated:
- Mortgage recording tax equals the combined state and county rate multiplied by the mortgage principal amount.
- Some components can vary depending on the lender type or thresholds. Your title company and lender will apply the correct formula for your loan.
Illustrative example only: If your mortgage is $400,000 and the hypothetical combined rate were 1.8%, the mortgage recording tax would be $7,200. Do not use this hypothetical for budgeting. Always rely on your lender’s and title company’s current figures for Nassau County.
Who usually pays these taxes
- Transfer tax: Allocation is set by contract. Local practice can vary, so check your agreement and the closing statement.
- Mansion tax: Commonly paid by the buyer on qualifying transactions. Confirm in your contract.
- Mortgage recording tax: Typically paid by the borrower, since it is tied to the mortgage being recorded.
How to budget for your Merrick closing
- Ask your lender for an itemized Loan Estimate early. It will show expected mortgage recording tax and lender-related costs.
- Request an itemized estimate from your title company or closing attorney. Ask them to show the state transfer tax, any mansion tax, the Nassau County mortgage recording tax, county clerk fees, and title insurance premiums.
- Review your contract for who pays what. If you negotiated a different split, make sure it appears correctly on your closing statement.
- If your price is near $1,000,000, plan for the 1% mansion tax if you meet or exceed the threshold. Discuss cash-to-close needs with your lender well in advance.
What to verify before closing
- The current Nassau County mortgage recording tax rate and calculation method for your loan.
- The state transfer tax at 0.4% of your purchase price.
- The mansion tax at 1% if your price is at or above $1,000,000.
- Final numbers on your Closing Disclosure from the lender and the title closing statement from your title company or attorney.
Documents and sources to request
- Loan Estimate from your lender. This provides the early snapshot of taxes and fees tied to your financing.
- Closing Disclosure from your lender before closing. This shows the finalized mortgage recording tax and other closing costs.
- An itemized title quote and closing statement from your title company or attorney. Ask them to confirm the state transfer tax, any mansion tax, the Nassau mortgage recording tax, and county clerk fees.
- Official rate confirmations. Have your professionals reference the current New York State Tax Department guidance and the Nassau County Clerk for recording and mortgage tax schedules.
Buying in Merrick should feel exciting, not confusing. If you want a clear, personalized estimate for your situation and guidance on how to keep your cash-to-close predictable, reach out to Santillo Realty. We will walk you through each tax, coordinate with your lender and title team, and help you close with confidence. Let’s Connect.
FAQs
What transfer taxes apply when buying in Merrick, NY?
- You will see New York State’s 0.4% real estate transfer tax, and if your price is $1,000,000 or more, a 1% mansion tax may also apply.
How is the New York State transfer tax calculated for buyers?
- Multiply your purchase price by 0.004 to estimate the state transfer tax, then confirm the allocation of payment in your contract and closing statement.
What is the Nassau County mortgage recording tax for homebuyers?
- It is a tax on your mortgage amount, made up of state and county components; your lender or title company will calculate the exact current rate for Nassau County.
Who usually pays the mansion tax in Merrick home purchases?
- It is commonly paid by the buyer on qualifying transactions, but your contract controls, so verify with your attorney and title company.
How can I get accurate, current mortgage tax numbers before closing?
- Ask your lender and title company for written estimates and rely on the final figures in your Closing Disclosure and title closing statement.
