Learn about Suffolk County’s transfer tax: a quick guide

It is crucial to know how the real estate transfer tax works when selling a home in Suffolk County. When property ownership changes hands, the transfer tax is a fee levied by local or state authorities. Rates can vary greatly depending on location and affect your overall cost.

This guide will explain how transfer tax works in Suffolk County, breaking down the fees you can pay and the people responsible for Suffolk County transfer tax. Additionally, we will highlight the exemptions you may be eligible for.

Editor’s Note: This article is for educational purposes only and does not constitute legal or financial advice. Contact and reference to Suffolk County Area Tax Services or attorneys should not be considered endorsed.

What is transfer tax?

When property ownership is transferred from one person to another, the state or local government imposes real estate transfer taxes. According to the Federal Trade Commission, ownership of the property is formally passed on to a new owner (essentially a document that confirms your legal ownership).

The amount of transfer tax you owe may vary greatly depending on the location of the property.

Different states, counties and cities can establish their own rates and regulations for these taxes. Transfer tax is primarily a source of income for local and state governments, supporting a variety of public service and infrastructure projects.

Who pays the transfer tax?

Typically, in Suffolk County, the seller is responsible for paying the transfer tax in New York, although this is always mandatory. In New York State, the buyer or seller can be in trouble with the transfer tax as long as it is specified in the sales agreement. Otherwise, it will fall on the seller.