When you buy or sell property in the Hamptons, you will probably encounter real estate transfer taxes. Here's the skinny on each.
New York State Seller Transfer Tax is a tax of $2.00 for every $500 or any fraction of the sale price.
Math is hard: If your house sells for $500,000, you owe $2,000.
Who pays? Seller
New York State Mansion Tax is a 1% tax paid on the purchase of property occupied by a one, two, or three-family dwelling including condos and coops, if the purchase price is $1 million or more.
Math is hard: If you buy a house for $1,000,000, you pay $10,000.
Who pays: Buyer
Community Preservation Fund Transfer Tax, the "Peconic Tax," is in effect in the towns of Southampton, East Hampton, Shelter Island, Southold, and Riverhead. In Southold and Riverhead, the tax is 2% on the amount over $75,000 on the purchase price of unimproved land, and 2% on the amount over $150,000 on the purchase price of improved land. In Southampton, East Hampton, and Shelter Island, the tax is 2% on the amount over $100,000 on the purchase price of unimproved land, and 2% on the amount over $250,000 on the purchase price of improved land.
Math is hard: If you buy a house for $500,000 in East Hampton, you pay $5000.
Who pays: Buyer, but first-time homebuyers in Southampton, East Hampton, and Shelter Island may qualify for exemptions.
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