Westchester County Closing Costs for Buyers: Mansion Tax and Mortgage Tax Explained
What taxes do buyers pay at closing in Westchester County, NY?
Buyers in Westchester County pay a 1% mansion tax on homes priced at $1,000,000 or more, plus a mortgage recording tax of 1.30% of the loan, with the lender covering 0.25% of it.
You found the house, the offer was accepted, and now the mortgage commitment shows a closing cost estimate that is bigger than you expected. In Westchester County, a large share of that number is not lender fees at all. It is New York State and county tax, and it is set by the price you pay and the loan you take.
Two taxes do most of the damage: the mansion tax and the mortgage recording tax. This guide explains how each one works in Westchester County, who pays it, and what a realistic $1,200,000 purchase looks like. Everything below is general information, so your attorney and lender should confirm the final numbers on your own deal.
The Mansion Tax on Westchester County Home Purchases
How the 1% mansion tax works
New York State charges an additional transfer tax on residential property when the price for the whole conveyance is $1 million or more. The rate is 1% of the consideration. The buyer is legally responsible for it, and it is paid with Form TP-584 no later than the 15th day after the deed is delivered.
The tax applies to single family homes, townhomes, condominium units and cooperative apartments. It is not limited to mansions, and it applies across Westchester County, from a condo in White Plains to a colonial in Bedford.
The $1,000,000 threshold is a cliff, not a bracket
The state's examples show that once the price reaches $1,000,000, the 1% applies to the full residential price, not just the amount over $1,000,000. A $999,000 purchase owes no mansion tax. A $1,000,000 purchase owes $10,000. That gap is why price negotiations near the line deserve a conversation with your attorney early.
What a "seller pays all taxes" clause does and does not do
Some contracts say the seller pays transfer taxes. The Tax Department's guidance treats a seller who pays the buyer's additional tax as an expense of the sale, and that payment does not reduce the stated price. Nothing in the publication says a contract term moves the statutory liability off the buyer. Have your attorney confirm exactly how the contract language handles the mansion tax before you sign.
The Mortgage Recording Tax in Westchester County
The rate: 1.30% of the loan, 1.80% in Yonkers
When you finance a purchase, the county clerk collects a mortgage recording tax on the amount of the loan. According to the New York State Department of Taxation and Finance, the rate in Westchester County outside Yonkers is $1.30 per $100 borrowed. That combines a basic tax of $0.50, a special additional tax of $0.25, an additional tax of $0.30 and a Westchester County tax of $0.25.
Inside the City of Yonkers the same memo lists $1.80 per $100, because Yonkers adds its own $0.50 local tax. If you are comparing a house in Yonkers with one in Scarsdale or Rye, run both through the tax math, because the same loan costs more to record in Yonkers.
Who pays which part
For a mortgage on a property with no more than six dwelling units, each with its own cooking facilities, the lender generally pays the special additional tax, according to the Tax Department's instructions for Form IT-256. That is the $0.25 portion. Some lenders are exceptions, including federal credit unions and certain federal savings banks, so ask your lender who is covering that quarter point on your loan.
For a typical bank mortgage, that leaves you with roughly 1.05% of the loan in Westchester County and 1.55% in Yonkers.
A small break on one and two family homes
If the property is principally improved by a one or two family residence, the first $10,000 of the mortgage is not subject to the additional mortgage recording tax. At the $0.30 per $100 rate, that trims about $30 off the bill. It is a small number, but it will show up on your closing statement.
Cash buyers skip this tax
The tax is charged when a mortgage is recorded. If you pay cash and there is no mortgage, there is no mortgage recording tax. The mansion tax still applies to a cash purchase at $1,000,000 or more.
Example: A $1,200,000 Home in Westchester County
Here is a simple illustration for a buyer in Westchester County, outside Yonkers, putting 20% down. These are tax calculations using the rates above, and they exclude title insurance, attorney fees, lender fees, prepaid items and escrows.
| Item | How it is figured | Amount |
|---|---|---|
| Purchase price | Contract price | $1,200,000 |
| Loan amount | 80% of price | $960,000 |
| Mansion tax | 1% of $1,200,000 | $12,000 |
| Mortgage recording tax, total | 1.30% of $960,000 | $12,480 |
| Portion paid by lender | 0.25% of $960,000 | $2,400 |
| Portion paid by buyer | 1.05% of $960,000 | $10,080 |
| Buyer taxes before the $10,000 reduction | $12,000 + $10,080 | $22,080 |
In this example, the buyer's state and county taxes land near $22,000 before any other closing cost. The same loan in Yonkers would carry a 1.55% buyer share, or $14,880, which adds about $4,800 compared with the rest of Westchester County.
Recording Fees at the Westchester County Clerk
On top of the taxes, the Westchester County Clerk charges recording fees. Per the clerk's current land records fee schedule, recording a deed has a $45 statutory fee, $5 per written page, a $5 fee to file the TP-584 transfer tax form for residential property, and a $125 fee for the Real Property Transfer Report (RP-5217). Recording a mortgage has a $45 statutory fee, $5 per page and a $5 mortgage tax affidavit fee.
The clerk's own illustration puts a three page residential deed at $190. These fees are small next to the taxes, but they are real line items, and the clerk can change its schedule, so your attorney's closing figures are the ones to rely on.
Other Closing Costs to Budget For
Taxes and recording fees sit alongside the costs every New York buyer sees. Plan for your attorney's fee, title insurance and search charges, lender and appraisal fees, a survey where needed, and prepaid items such as homeowners insurance and property tax escrows. Condo and co-op buyers in Westchester County may also face building move in fees or application charges, which vary by building.
Your lender must deliver a Closing Disclosure at least three business days before you close. It is a five page form with the final loan terms and the fees and closing costs you will pay. Read it line by line against your original Loan Estimate and ask questions while there is still time to get answers.
How to Lower the Bite
- Know the cliff before you offer. If the price is close to $1,000,000, understand the 1% mansion tax impact before you negotiate.
- Ask who covers the quarter point. Confirm with your lender that the 0.25% special additional tax is being paid by the lender on your loan.
- Compare Yonkers carefully. The 1.80% rate there changes the monthly and upfront math for the same loan size.
- Negotiate with full numbers. Closing cost credits and price are two different levers. Ask your attorney how a credit interacts with the contract price and the tax calculation.
- Get an itemized estimate early. Request your attorney's and lender's figures before you go to contract, not after.
Frequently Asked Questions About Westchester County Closing Costs
Who pays the mansion tax in Westchester County?
The buyer. New York State law makes the grantee, the person receiving the deed, liable for the additional tax. It applies at $1,000,000 or more and is paid with Form TP-584 within 15 days after the deed is delivered.
What is the mortgage recording tax rate in Westchester County?
It is $1.30 per $100 of the loan in Westchester County outside Yonkers, or 1.30%. In Yonkers, the rate is $1.80 per $100, or 1.80%.
Does the lender pay part of the mortgage recording tax?
Usually, yes. For residential mortgages on up to six dwelling units, the lender generally pays the $0.25 per $100 special additional tax, with exceptions such as federal credit unions. Ask your lender to confirm on your loan.
Do cash buyers pay the mortgage recording tax in Westchester County?
No. The tax is charged on recording a mortgage, so a purchase with no mortgage does not owe it. A cash buyer paying $1,000,000 or more still owes the mansion tax.
If my price is $995,000, do I owe the mansion tax?
No. The tax starts when the price for the whole conveyance reaches $1,000,000. Once it does, the 1% applies to the full residential price, not only the amount above the line.
Can the seller agree to pay my mansion tax?
A seller can agree to pay it as part of the contract, but the Tax Department treats that as an expense of the sale and the buyer remains the party the statute makes liable. Your attorney should review how the contract handles it.
How much are county recording fees for a deed?
The Westchester County Clerk lists a $45 statutory fee, $5 per page, a $5 TP-584 filing fee and a $125 Real Property Transfer Report fee for residential property. A three page residential deed comes to $190 under the clerk's own example.
When do I get to see my final closing costs?
If you have a mortgage, your lender must give you the Closing Disclosure at least three business days before closing. Your attorney will also prepare the closing figures for the taxes and fees tied to the deed and mortgage.
Talk to a Local Expert
Closing costs are easier to plan for when you see them before you write an offer. Steven Scarnati, REALTOR® with Real Broker, helps buyers and sellers across Westchester County, Putnam County, Dutchess County and Fairfield County, CT. If you are weighing a purchase and want a straight conversation about price, taxes and what you will bring to the table, reach out at stevescarnatihomes@gmail.com or (845) 661-3469.
Schedule a consultation with Steve Scarnati.
This article is general information, not legal, tax or financial advice. Tax rates, fees and rules change, and your situation may differ. Consult a New York real estate attorney, a CPA and your lender about your own transaction.
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