The Court Report – Blog

Real Estate Transfer Tax on the Rise in NY

February 09, 2023

Recent changes in NY tax law and local laws paved the way for several towns to modify existing or adopt additional real estate transfer tax.

Purchasers in the east end of Suffolk County are familiar with the supplemental 2% real estate transfer tax for the Peconic Bay Region Community Preservation Fund, which will increase to 2.5% in East Hampton, Shelter Island, South Hampton, and Southold. The first 2% of this tax, paid to the town in which the property is located, supports water quality and preservation initiatives. The additional 0.5%, effective April 1, 2023, will help fund affordable housing initiatives.

Exemptions and allowances will also see a change effective April 1, 2023. In Southold, the exemption amount on improved real estate will increase from $150,000 to $200,000. In East Hampton, Shelter Island and South Hampton, the exemption amount will increase from $250,000 to $400,000, with no exemption on conveyances over $2 million. No increase will be given for unimproved land in any of the towns, and Riverhead will maintain the 2% tax rate with a $150,000 exemption for improved property.

In Ulster County, the towns of Marblehead and Gardiner both adopted an additional transfer tax. In Marbletown, an additional 1% tax is imposed effective January 1, 2023.

In Gardiner, an additional 1.25% tax goes into effect on February 1, 2023. Currently, the first $320,000 is exempt from the tax, as are purchase contracts entered into prior to the effective date.

Written By Jennie L. Croyle, Esq.

Foreclosed Homes in New York

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