{"id":612487,"date":"2026-09-10T09:39:36","date_gmt":"2026-09-10T09:39:36","guid":{"rendered":"https:\/\/www.olympiajournal.com\/news\/story\/612487\/manhattan-real-estate-attorney-natalia-sishodia-explains-how-the-nyc-transfer-tax-works-and-who-pays.html"},"modified":"2026-09-10T09:39:36","modified_gmt":"2026-09-10T09:39:36","slug":"manhattan-real-estate-attorney-natalia-sishodia-explains-how-the-nyc-transfer-tax-works-and-who-pays","status":"publish","type":"post","link":"https:\/\/www.olympiajournal.com\/news\/story\/612487\/manhattan-real-estate-attorney-natalia-sishodia-explains-how-the-nyc-transfer-tax-works-and-who-pays.html","title":{"rendered":"Manhattan Real Estate Attorney Natalia Sishodia Explains How the NYC Transfer Tax Works and Who Pays"},"content":{"rendered":"
\"Manhattan<\/a><\/div>\n

NEW YORK, NY – September 10, 2026 – Buyers and sellers involved in New York City real estate transactions often face uncertainty about who is responsible for transfer taxes and whether an exemption may reduce the amount owed. Manhattan real estate attorney Natalia Sishodia of Sishodia PLLC (https:\/\/sishodia.com\/how-to-avoid-the-nyc-transfer-tax\/<\/a>) has released guidance explaining how the New York City Real Property Transfer Tax and related state taxes are allocated, and how contract language and statutory exemptions can affect what each party personally pays before closing.<\/p>\n

According to Manhattan real estate attorney Natalia Sishodia, the seller generally pays the New York State base transfer tax and the New York City Real Property Transfer Tax (RPTT) in most Manhattan transactions, while the mansion tax and New York State supplemental tax typically default to the buyer. “Many buyers and sellers assume the transfer tax is a single fixed cost, but each tax has its own default payer and its own rules,” Sishodia explains. “Reviewing the contract and the transfer tax return before closing is the only way to confirm how those obligations are actually allocated.”<\/p>\n

Manhattan real estate attorney Natalia Sishodia notes that certain high-value conveyances can trigger an additional base tax that also defaults to the seller. This additional base tax applies to residential properties when the consideration is $3,000,000 or more, and to non-residential properties valued at $2,000,000 or more. Because responsibility can shift under specific circumstances, Sishodia points out that the property type, purchase price, and contract terms must all be examined together.<\/p>\n

A significant complication can arise in Manhattan new construction, where Manhattan real estate attorney Natalia Sishodia observes that some sponsor contracts require the buyer to cover the seller’s transfer taxes. When a buyer pays an obligation that legally belongs to the seller, tax authorities treat that payment as additional consideration for the property, requiring a “gross-up” calculation that increases the total tax owed.<\/p>\n

Sishodia emphasizes that buyers can also become liable for state or city transfer taxes if the seller is exempt or fails to pay. “When a seller’s failure to pay forces the buyer to cover these taxes, both parties can become jointly liable,” she says. “In that situation, the buyer may have a legal claim to recover those funds from the seller, but the contract needs to support that recovery.”<\/p>\n

On the mansion tax, Attorney Sishodia explains that the tax equals 1% of the consideration for residential real property when the amount is $1,000,000 or more. For residential property in New York City, the New York State supplemental tax begins at $2,000,000, with tiered rates ranging from 0.25% to 2.9% for sales of $25,000,000 and above. If the buyer is exempt or fails to pay these amounts, the seller may become responsible, and joint liability can apply.<\/p>\n

The firm also assists clients in evaluating available exemptions. Sishodia notes that New York Tax Law Section 1405 lists several exemptions, and NYC Administrative Code Section 11-2106 provides additional exclusions for the city’s RPTT. Common examples include certain government-related conveyances, deeds given solely as security for a debt, confirmatory or corrective deeds, bona fide gifts, changes in the form of ownership without a change in beneficial ownership, bankruptcy conveyances, and deeds of partition.<\/p>\n

Attorney Sishodia cautions that claiming an exemption incorrectly can lead to back taxes and penalties. “A gift deed that also relieves the recipient of mortgage debt may not be fully exempt,” she advises, “because under Tax Law Section 1401(d), that debt relief counts as consideration.” She adds that some transactions remain exempt from the tax but must still be reported on an RPTT return, including certain transfers involving the United Nations and nonprofit organizations formed exclusively for religious, charitable, or educational purposes.<\/p>\n

Sishodia also highlights that the NYC RPTT generally applies only when a New York City property transfer exceeds $25,000. Transactions at or below that amount are not subject to the tax, though reporting requirements may still apply. Because each tax carries its own threshold and default payer, the firm reviews the deed, consideration, mortgage treatment, and supporting documents to confirm that a transaction fits the exemption being claimed and that the return matches the contract terms.<\/p>\n

For buyers, sellers, and investors navigating a Manhattan purchase or sale, contacting an experienced real estate attorney may help clarify which transfer taxes apply, whether an exemption is available, and how payment responsibility is allocated before closing.<\/p>\n

About Sishodia PLLC:<\/strong><\/p>\n

Sishodia PLLC is a New York City law firm focused on real estate law, business law, elder law, estate planning, and taxation, with particular attention to high-end residential and commercial transactions. Led by attorney Natalia A. Sishodia, the firm serves buyers, sellers, investors, and international clients throughout Manhattan and the greater New York area. The office is located at 600 3rd Ave, 2nd Floor, New York, NY 10016. For consultations, call (833) 616-4646.<\/p>\n

 <\/p>\n

Embeds:<\/p>\n

Youtube Video: https:\/\/www.youtube.com\/watch?v=cpE6oIPNA4M<\/a><\/p>\n

GMB: https:\/\/www.google.com\/maps?cid=12450537318741950980<\/a><\/p>\n

 <\/p>\n

Email and website<\/p>\n

Email: natalia@sishodialaw.com<\/p>\n

Website: https:\/\/sishodia.com\/<\/p>\n

Media Contact<\/span>
Company Name:<\/strong> Sishodia PLLC<\/a>
Contact Person:<\/strong> Natalia A. Sishodia
Email:<\/strong> Send Email<\/a>
Phone:<\/strong> (833) 616-4646
Address:<\/strong>600 3rd Ave 2nd floor, New York, NY 10016
City:<\/strong> New York
State:<\/strong> New York
Country:<\/strong> United States
Website:<\/strong> https:\/\/sishodia.com\/<\/a><\/p>\n

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NEW YORK, NY – September 10, 2026 – Buyers and sellers involved in New York City real estate transactions often face uncertainty about who is responsible for transfer taxes and<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.olympiajournal.com\/news\/wp-json\/wp\/v2\/posts\/612487"}],"collection":[{"href":"https:\/\/www.olympiajournal.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.olympiajournal.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.olympiajournal.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.olympiajournal.com\/news\/wp-json\/wp\/v2\/comments?post=612487"}],"version-history":[{"count":0,"href":"https:\/\/www.olympiajournal.com\/news\/wp-json\/wp\/v2\/posts\/612487\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.olympiajournal.com\/news\/wp-json\/wp\/v2\/media?parent=612487"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.olympiajournal.com\/news\/wp-json\/wp\/v2\/categories?post=612487"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.olympiajournal.com\/news\/wp-json\/wp\/v2\/tags?post=612487"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}