New York mortgages: the recording tax, mansion tax and SONYMA help

#A state of renters, in the country’s oldest housing

New York is a state of renters by US standards: only 54.3% of occupied homes are lived in by their owners, the 2nd-lowest homeownership rate among the states and DC (the US figure is 65.3%). The housing is old as well — half of New York’s homes were built before 1959, the oldest housing of any state.

Statewide numbers blend very different markets. New York City, where even fewer households own (32.7%), has its own transfer and mortgage taxes and a large co-op market — see our New York City guide. The rest of this page focuses on rules that apply across the state.

#New York’s mortgage recording tax

When your mortgage is recorded, New York charges a tax on the amount borrowed. Outside New York City it totals about 1% of the loan, made up of a basic tax, a special additional tax and an additional tax; the exact rate depends on the county, and New York City and Yonkers add local taxes on top. The state’s Form MT-15 lists the current rate for each place.

Because it is based on the loan, not the price, a bigger down payment shrinks it. Ask your lender to show it on the Loan Estimate.

#The transfer tax and the $1,000,000 line

The state real estate transfer tax is 0.4% of the price, and the seller pays it unless the contract says otherwise — about $1,799 on the median-value home.

Buyers have their own tax at the top of the market: the mansion tax, 1% of the whole price on homes selling for $1,000,000 or more. Because it applies to the full price, it creates a cliff: a home at $999,000 owes none, while one at $1,000,000 owes $10,000. If you are bidding near that line, the extra tax belongs in your cash-to-close math. New York City adds a city transfer tax and, on the priciest homes, a supplemental tax paid by the buyer.

#Paying for the median New York home

On New York’s median household income of $85,820, keeping housing under Freddie Mac’s 30% guideline allows $2,146 a month, which supports a price of about $262,000 with 10% down — $187,800 below the median value. The median renter pays $1,634 a month; the rent vs buy calculator shows how long you would need to stay for buying to pay off, and the payment calculator opens with these New York figures.

#SONYMA mortgages and the forgivable DPAL

The State of New York Mortgage Agency (SONYMA), part of Homes and Community Renewal, lends through participating lenders. Achieving the Dream carries SONYMA’s lowest interest rates, and the Low Interest Rate Program covers one- to four-family homes, condos, co-ops and manufactured homes. Income and price limits vary by program and region, and in designated Target Areas you don’t have to be a first-time buyer.

Any SONYMA mortgage can carry a Down Payment Assistance Loan (DPAL): 3% of the price, up to $15,000, or $3,000, whichever is higher. It charges no interest, needs no monthly payments and is forgiven after 10 years; sell or refinance earlier and the amount owed shrinks a little each month you lived there. SONYMA says first mortgages that carry a DPAL have a slightly higher rate.

Co-op buyers can finance up to 95% of value. For households up to 60% of area median income, the 2026 DPAL Plus offers up to $30,000 on a first-come, first-served basis while funds last. See how this compares with other help in the down-payment grants guide.

#Property tax and the STAR credit

New York’s effective property tax rate of 1.45% is the 5th-highest among the states and DC, and the median owner pays $6,542 a year against $3,211 nationally. School taxes are a large part of most bills, which is where the School Tax Relief (STAR) program helps.

New owners receive STAR as a credit paid by the state, rather than as an exemption on the tax bill. Register through the Homeowner Benefit Portal as soon as the home becomes your primary residence. Basic STAR is open to owners with income up to $500,000; Enhanced STAR, for owners 65 and older, has a 2026 income limit of $110,750. If your lender pays taxes from escrow, tell it if you switch from the exemption to the credit.