What Is New York Mortgage Recording Tax?

Mortgage recording tax is one of the New York-specific closing costs that catches many buyers off guard, especially those who’ve purchased property in other states before. Unlike some closing costs that are relatively uniform nationwide, this one is a distinctly New York requirement, and it can add a meaningful amount to your total closing costs on Long Island.

How Mortgage Recording Tax Is Calculated

The tax applies when a mortgage is officially recorded against the property, and it’s calculated as a percentage of the loan amount — not the purchase price of the home. This is an important distinction: a buyer putting more money down and financing a smaller amount will owe less recording tax than a buyer financing a larger amount on the same purchase price. The exact rate varies somewhat by county, so a Nassau County purchase and a Suffolk County purchase of the same loan amount may not have identical tax amounts.

Recording Tax on Refinances

Recording tax generally applies again when a new mortgage is recorded through a refinance, since a new loan is being put in place. New York does have a mechanism called a CEMA (Consolidation, Extension and Modification Agreement) that, in certain refinance scenarios, can reduce how much of the new loan is subject to fresh recording tax by treating part of the transaction as a continuation of the original mortgage rather than a brand new one. Whether a CEMA is available and worth pursuing depends on the specifics of the refinance.

Budgeting for It

Because this cost scales with your loan amount, it’s straightforward to estimate once you know roughly how much you plan to finance. It’s typically included in the closing cost estimates a loan officer provides during pre-approval, so it shouldn’t be a surprise at the closing table if you’ve reviewed your loan estimate carefully.

Frequently Asked

What is New York mortgage recording tax?

It's a tax charged when a mortgage is recorded against a property in New York State. It's calculated as a percentage of the loan amount, not the purchase price, and the exact rate depends on the county and the loan size.

Is mortgage recording tax based on the loan amount or the home price?

It's based on the mortgage loan amount, not the purchase price. A larger down payment that results in a smaller loan amount reduces the recording tax owed.

Do I pay mortgage recording tax on a refinance?

Generally yes, since a new mortgage is being recorded, though certain refinance structures in New York (such as a CEMA) can reduce or avoid re-paying tax on the portion of the balance already taxed originally.

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