Learn about transfer taxes in Mount Vernon: A quick guide

What is the type of transfer tax?

Transfer taxes usually vary according to local regulations, but can usually be divided into three types according to the state’s status: state, city, and county. This is how Mount Vernon works.

National transfer tax

According to the New York State Treasury Department, taxes are charged $2.00 for every $500 consideration. The state also has a “luxury house tax,” which is an additional tax applicable to additional taxes for dwellings of $1 million or more.

City transfer tax

In Mount Vernon, the urban transfer tax rate is 1.5%. This has increased from 1% in 2024 under the city regulations.

Other transfer fees

In addition to the transfer tax, additional fees may be considered, such as fees for homeowners’ associations or local neighborhood organizations. As these may vary by location, it is recommended to consult a professional.

If you sell your home without a real estate agent, seeking professional advice can shed light on some of the nuances of the process and gain a clearer understanding of expectations about the pros and cons of selling your home without a real estate agent.

Is transfer tax deductible?

Unfortunately, the transfer tax does not comply with the tax relief.

However, you may be able to lower the amount you pay in capital gains tax.

Capital gains are defined as profits earned from the sale of your home or the sale of your property, just like profits from the sale of other assets, paid federal taxes.

The IRS said sellers can choose to treat paid transfer taxes as sales expenses, allowing them to subtract those expenses from the closing sale price of the home. By doing so, they can reduce the capital gains tax owed to any profits they earn.