New York Mortgage Recording Tax Calculations

There is no reliable single percentage for every New York mortgage. The current statewide components are 0.5% basic tax, 0.25% special additional tax and, where imposed, 0.25% additional tax or 0.3% in the Metropolitan Commuter Transportation District. New York City, Yonkers and various counties add local tax.

What is the short formula map?

The $10,000 exclusion does not reduce the basic, special additional or local-tax bases. It reduces only the additional-tax component for qualifying one- or two-family property.

Official source map

The New York State Department of State 77-hour curriculum includes mortgage-tax calculations within Real Estate Mathematics and mortgage concepts within Real Estate Finance.

The New York State Department of Taxation and Finance's mortgage recording tax guide lists the state components, explains the $10,000 residential exclusion and directs readers to the current rate table. Form MT-15 publishes the county and New York City totals and gives the official rounding instruction.

New York Tax Law Article 11 governs tax on mortgages. Tax Law section 253 imposes the basic, special additional and additional components. Tax Law section 253-a authorizes the New York City component, while section 255 addresses qualifying supplemental mortgages.

What is mortgage recording tax?

Mortgage recording tax is an excise tax on the privilege of recording a mortgage. The tax is payable when the mortgage is recorded in the recording office of the county where the mortgaged real property is located.

It is separate from:

• real estate transfer tax on a taxable conveyance
• annual property tax on taxable assessed value
• loan interest paid to the lender
• lender origination, appraisal, title and recording fees

Review New York Real Estate Transfer Tax Calculations to keep transfer and mortgage taxes separate.

What amount is taxed?

The starting point is the principal debt or obligation secured, or that may be secured under the mortgage. In a standard purchase problem, that is usually the stated mortgage amount.

Example 1: Sale price is not the tax base

A buyer purchases a property for $700,000, makes a $210,000 down payment and records a $490,000 mortgage.

Mortgage amount = $700,000 - $210,000

Mortgage amount = $490,000

Mortgage recording tax is calculated on the $490,000 secured mortgage, not the $700,000 price and not the $210,000 down payment.

Use Loan-to-Value, Down Payment and Basic Qualifying Math when a question requires you to find the mortgage amount first.

Does an all-cash purchase have mortgage recording tax?

Not when no mortgage is recorded. A cash purchase can still create transfer-tax, title, filing and other closing costs, but mortgage recording tax follows a recorded mortgage.

How do you round the mortgage amount?

Form MT-15 instructs the preparer to round the mortgage amount to the nearest $100:

• a remainder of $50 or less rounds down
• a remainder greater than $50 rounds up

This matches the statutory phrase "$100 and each remaining major fraction," because a major fraction means more than one-half.

Example 2: Remainder of $50

A mortgage is $300,050.

Rounded mortgage amount = $300,000

The $50 remainder is not more than half of $100, so it rounds down.

Example 3: Remainder greater than $50

A mortgage is $300,075.

Rounded mortgage amount = $300,100

Use the rounded amount for the applicable component calculations.

What are the state mortgage-tax components?

The state guide identifies three core components:

1. basic tax of $0.50 per $100, equal to 0.5%
2. special additional tax of $0.25 per $100, equal to 0.25%
3. additional tax of $0.25 per $100 outside the MCTD, or $0.30 per $100 in the MCTD, where that component is imposed

Some counties have suspended the additional tax. Local city or county tax can also apply. That is why Form MT-15, not a memorized statewide total, is the current-rate source.

What is the Metropolitan Commuter Transportation District?

For Form MT-15 mortgage-tax calculations, the MCTD includes:

• New York, Bronx, Kings, Queens and Richmond counties
• Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester counties

The additional component in MCTD counties is 0.3%, compared with 0.25% in counties outside the district where the additional component is imposed.

MCTD location does not by itself tell you the entire rate. New York City, Rockland and Westchester have local components, while the table groups Dutchess, Nassau, Orange, Putnam and Suffolk at a different total.

What are the current total rates outside New York City?

The current Form MT-15 groups location totals per $100 of secured debt. Examples include:

The groups contain more counties than this summary names, and local rates can change. Use the latest Form MT-15 for the named county before calculating a real closing.

How do you convert a rate per $100 to a percentage?

Divide the dollar rate by $100.

$1.05 per $100 = $1.05 ÷ $100 = 0.0105 = 1.05%

$0.75 per $100 = $0.75 ÷ $100 = 0.0075 = 0.75%

Then multiply the correct tax base by the decimal rate. If the $10,000 exclusion applies, a single total-rate multiplication needs an adjustment because only one component uses the smaller base.

How does the $10,000 residential exclusion work?

If the real property is principally improved or to be improved by a one- or two-family residence or dwelling, the first $10,000 of principal debt is excluded when computing the additional-tax component.

It does not reduce:

• the basic-tax base
• the special-additional-tax base
• a local city or county tax base

It also does not apply to every property described informally as residential. The official rule specifies one- or two-family property for this exclusion.

Example 4: Nassau County one-family mortgage

A one-family house in Nassau County secures a new $400,000 mortgage. Assume all components in the Form MT-15 table apply and ignore special exemptions.

Basic tax:

$400,000 × 0.5% = $2,000

Special additional tax:

$400,000 × 0.25% = $1,000

Additional-tax base:

$400,000 - $10,000 = $390,000

MCTD additional tax:

$390,000 × 0.3% = $1,170

Total statutory tax:

$2,000 + $1,000 + $1,170 = $4,170

Multiplying the full $400,000 by the table total of 1.05% gives $4,200. Subtract the $30 reduction created by the exclusion, and the result is $4,170.

Example 5: Monroe County one-family mortgage

A one-family house in Monroe County secures a $250,000 mortgage.

Basic tax:

$250,000 × 0.5% = $1,250

Special additional tax:

$250,000 × 0.25% = $625

Additional-tax base:

$250,000 - $10,000 = $240,000

Additional tax outside MCTD:

$240,000 × 0.25% = $600

Total statutory tax:

$1,250 + $625 + $600 = $2,475

Does the $10,000 exclusion apply twice?

No. The Tax Department's bulletin says the exclusion applies once to each mortgage that is not supplemental to a previously recorded mortgage. It does not reduce each state component, and it does not automatically apply again to a modification or consolidation.

What if the county does not impose the additional component?

Then there is no additional component to reduce. The $10,000 exclusion does not create a deduction against the basic or special additional taxes.

Example 6: County total of $0.75 per $100

Assume a $300,000 mortgage in a county currently listed in Form MT-15's $0.75 group.

Total tax = $300,000 × 0.75%

Total tax = $2,250

The group total contains the 0.5% basic and 0.25% special additional components. Because the additional component is not imposed, no $10,000 adjustment is made.

What are the current New York City rates?

Form MT-15 lists these total statutory rates for mortgages recorded in New York, Bronx, Kings, Queens and Richmond counties:

The threshold follows the secured mortgage amount, not the sale price. A $700,000 purchase with a $490,000 mortgage falls in the less-than-$500,000 mortgage row.

How do you calculate New York City mortgage tax below $500,000?

Example 7: NYC one-family mortgage of $400,000

The published total rate is 2.05%, but the one-family property qualifies for the $10,000 exclusion from the 0.3% additional component.

Full-rate calculation:

$400,000 × 2.05% = $8,200

Additional-component reduction:

$10,000 × 0.3% = $30

Total statutory tax:

$8,200 - $30 = $8,170

How do you calculate New York City mortgage tax at $500,000 or more?

First choose the property category, then test the one- or two-family exclusion separately.

Example 8: NYC one-family house with $600,000 mortgage

The table total is 2.175% for a one-, two- or three-family house at this mortgage level. The one-family house also qualifies for the $10,000 additional-component exclusion.

Full-rate tax = $600,000 × 2.175% = $13,050

Exclusion reduction = $10,000 × 0.3% = $30

Total statutory tax = $13,050 - $30 = $13,020

Example 9: NYC residential condominium with $600,000 mortgage

The condominium is in the 2.175% table row. The $10,000 exclusion is stated for one- or two-family property, so it is not applied in this condominium example.

Total statutory tax = $600,000 × 2.175% = $13,050

Example 10: Other NYC mortgage of $600,000

Assume the mortgage belongs in the "all other" category.

Total statutory tax = $600,000 × 2.8%

Total statutory tax = $16,800

Do not apply the one- to three-family or condominium rate to a property outside that category.

Who pays mortgage recording tax?

Payment responsibility is more nuanced than saying "the buyer pays."

Tax Law section 253 gives a specific rule for the 0.25% special additional component. For property principally improved or to be improved by structures containing no more than six residential dwelling units, each with separate cooking facilities, the mortgagee generally pays that component and it cannot be passed through to the mortgagor, subject to statutory exceptions. In other cases, the mortgagor generally pays that component, with another exception for certain exempt organizations.

The statute also provides an exemption from the special additional component for certain mortgages where the mortgagee is a natural person or credit union and the premises contain six or fewer qualifying residential units.

The worked examples above calculate total statutory tax before assigning components between parties. A borrower's closing estimate can therefore differ from the full statutory total.

Is the lender usually the mortgagee?

In a standard loan, yes. The mortgagee holds the mortgage interest, and the mortgagor gives the mortgage to secure the debt. Usually:

• mortgagee = lender
• mortgagor = borrower

Keep those roles separate from grantor and grantee, which describe a conveyance rather than a mortgage.

How do refinances and CEMAs affect mortgage recording tax?

A new mortgage recorded in a refinance can be taxable. A properly structured consolidation, extension and modification agreement, commonly called a CEMA, may use Tax Law section 255 so that qualifying existing debt on which tax was paid is not taxed again. New or further indebtedness remains taxable.

The label alone does not produce the result. The existing mortgage must remain eligible, documentation must satisfy the statute and regulations, and the recording must be structured correctly. An official 2020 advisory opinion explains that an instrument recorded after the old mortgage had been discharged did not qualify as a supplemental mortgage and was taxable on recording.

For exam purposes, remember the principle:

Previously taxed qualifying debt may avoid duplicate tax under section 255; new secured debt remains taxable.

Do not calculate a real refinance from this shortcut. CEMA eligibility, lender cooperation, assignment charges, title work and legal costs require transaction-specific analysis.

What if one mortgage covers property in more than one locality?

Form MT-15 is used when mortgaged real property lies in more than one locality and those localities impose different rates. The form apportions relevant tax using the relative assessed value of the property in each locality.

This is a different use of assessed value from an annual tax bill. The mortgage amount remains the debt base, while assessed values determine how the tax is allocated among localities.

What mistakes cause the most wrong answers?

Using the sale price instead of the mortgage amount

Mortgage recording tax follows secured debt. Transfer tax follows consideration for a conveyance.

Applying one statewide percentage

Location and local tax change the total. Check Form MT-15.

Deducting $10,000 from the entire tax base

For qualifying one- or two-family property, the exclusion reduces only the additional component.

Applying the exclusion to a three-family house or condominium

The exclusion rule specifies a one- or two-family residence or dwelling.

Ignoring the New York City $500,000 mortgage threshold

The mortgage amount, not purchase price, selects the NYC table row.

Forgetting the rounding rule

A remainder of $50 or less rounds down. A remainder greater than $50 rounds up.

Treating total statutory tax as the borrower's exact cost

The special additional component has separate payer and exemption rules.

Assuming every refinance taxes only new money

Section 255 treatment depends on the instrument, existing mortgage, prior tax and recording structure.

What is a reliable exam-day workflow?

1. Identify the mortgage amount or calculate it from price and down payment.
2. Round the mortgage amount under the $100 rule.
3. Identify the county and city.
4. Select the current Form MT-15 components or table row.
5. Identify the property type.
6. Apply the $10,000 exclusion only to the additional component when the facts qualify.
7. Calculate local tax on its proper base.
8. Add the applicable components.
9. Assign payer responsibility only if asked and supported by the facts.
10. Keep transfer tax and mortgage recording tax on separate lines.

Use the New York real estate math formula map for rate conversions and Closing Prorations, Day Counts, Debits and Credits for other closing arithmetic.

Can you solve these original practice questions?

Practice 1

A property sells for $650,000 with a $130,000 down payment. What amount is normally used as the mortgage-tax base before rounding and special rules?

A. $130,000
B. $520,000
C. $650,000
D. $780,000

Answer: B. $650,000 - $130,000 = $520,000 secured by the mortgage.

Practice 2

How is a $275,050 mortgage rounded under Form MT-15?

A. $275,000
B. $275,050
C. $275,100
D. $276,000

Answer: A. A remainder of $50 or less rounds down.

Practice 3

How is a $275,075 mortgage rounded under Form MT-15?

A. $275,000
B. $275,050
C. $275,100
D. $276,000

Answer: C. A remainder greater than $50 rounds up to the next $100.

Practice 4

Which component receives the $10,000 exclusion for a qualifying one-family property?

A. Basic tax
B. Special additional tax
C. Additional tax
D. Every component

Answer: C. The exclusion reduces only the additional-tax base.

Practice 5

A $300,000 mortgage is recorded in a county whose current Form MT-15 total is $0.75 per $100, with no additional component. What is total statutory tax?

A. $750
B. $2,250
C. $3,000
D. $22,500

Answer: B. $300,000 × 0.75% = $2,250.

Practice 6

A New York City individual residential condominium secures a $600,000 mortgage. Using the current 2.175% total row and no special exemption, what is total statutory tax?

A. $7,050
B. $12,000
C. $13,050
D. $16,800

Answer: C. $600,000 × 2.175% = $13,050.

Practice 7

A New York City one-family house secures a $600,000 mortgage. Using the current 2.175% total and the qualifying $10,000 additional-component exclusion, what is total statutory tax?

A. $12,990
B. $13,020
C. $13,050
D. $16,800

Answer: B. Full tax is $13,050. The exclusion reduces the 0.3% additional component by $30, producing $13,020.

Practice 8

Which statement is accurate?

A. The purchase price selects the NYC mortgage-rate threshold.
B. Mortgage recording tax and transfer tax are the same tax.
C. A section 255 structure can make qualifying previously taxed debt different from new debt.
D. The $10,000 exclusion applies to every residential condominium.

Answer: C. The mortgage amount selects the rate row, transfer tax is separate, and section 255 treatment depends on qualifying debt and documents.

Frequently asked questions

What is New York mortgage recording tax?

It is a tax on the privilege of recording a mortgage against real property in New York State.

What is the New York mortgage recording tax rate?

There is no single total rate. State components and local city or county taxes combine, so the current rate depends on location, mortgage amount and property type.

Is mortgage recording tax based on the purchase price?

No. It is based on principal debt or obligation secured by the recorded mortgage.

How is the mortgage amount rounded?

Round to the nearest $100. A remainder of $50 or less rounds down, while a remainder greater than $50 rounds up.

What is the $10,000 mortgage-tax exclusion?

For qualifying one- or two-family property, the first $10,000 is excluded only from the additional-tax component.

What are the NYC mortgage recording tax rates?

Current Form MT-15 lists total rates of 2.05% below $500,000, 2.175% for qualifying residential categories at $500,000 or more, and 2.8% for other mortgages at $500,000 or more, before any applicable component adjustment or exemption.

Who pays New York mortgage recording tax?

Payment responsibility depends on the component and facts. The mortgagee generally bears the special additional component for certain property with no more than six residential units, subject to statutory exceptions.

Can a CEMA reduce mortgage recording tax?

A qualifying section 255 structure can avoid taxing previously taxed eligible debt again, while new debt remains taxable. The documents and timing control the result.

Does New York publish an official number of mortgage-tax questions?

No. The curriculum includes mortgage-tax calculations, but the Department of State does not publish a topic-level question count or weighting.

Sources and verification notes

This article was checked against official sources available on August 27, 2026. Its examples and practice questions are original educational calculations. County rates and transaction facts can change the result, so the article does not calculate tax or closing costs for a real mortgage.

• New York State Department of State, Real Estate Salesperson 77-Hour Curriculum
• New York State Department of State, Real Estate Salesperson
• New York State Department of Taxation and Finance, Mortgage recording tax
• New York State Department of Taxation and Finance, Form MT-15
• New York State Department of Taxation and Finance, $10,000 Residential Property Exclusion
• New York State Department of Taxation and Finance, General Questions and Answers on Mortgage Recording Taxes
• New York State Department of Taxation and Finance, Section 255 advisory opinion
• New York State Senate, Tax Law Article 11
• New York State Senate, Tax Law section 253
• New York State Senate, Tax Law section 253-a
• New York State Senate, Tax Law section 255

Use this lesson for education and exam preparation. For a real mortgage, verify the current MT-15 table and recording-office requirements, identify the exact property classification, and obtain qualified legal or tax guidance for exemptions, assignments, modifications and CEMAs.