Updated October 2026. Figures are estimates for education only; your attorney and lender will give you exact numbers.

The Quick Answer

On Long Island, buyers who finance typically pay about 2% to 4% of the purchase price in closing costs, reaching about 3% to 5% once upfront property tax and homeowners insurance escrows are funded. Sellers pay the 0.4% New York State transfer tax, their attorney, a few title and recording fees, and whatever commission they negotiated with their listing broker. If a buyer chooses to pay discount points upfront to buy down their mortgage rate each point equals 1% of the loan amount. 

The biggest swing factors are your loan amount (mortgage recording tax), whether the price hits $1 million (the mansion tax), and whether the home is on the East End, where the Peconic Bay transfer tax applies. Below is a line-by-line breakdown, followed by a worked example on a $750,000 Nassau County home.

Buyer Closing Costs on Long Island

The largest buyer costs are usually the mortgage recording tax, title insurance and attorney fees. Here is what a typical buyer of a house or condo pays.

Cost Typical Amount Notes
Mortgage recording tax 0.80% of the loan amount Applies to one- and two-family homes and residential condos in Nassau and Suffolk. The full rate is 1.05%, but the lender pays 0.25% on these properties. Three-plus family, commercial and vacant land pay 1.05%. Not charged on co-op share loans.
Mansion tax 1% of the full price Only when the price is $1,000,000 or more. Paid by the buyer on residential property, including co-ops.
Owner's title insurance About $450 per $100,000 of price Protects your ownership. In New York the buyer pays for it. Rates are state-regulated, so quotes are similar across title companies.
Lender's (mortgage) title insurance About $130 per $100,000 of loan Required by your lender.
Buyer's attorney Commonly $2,000 to $4,000 Varies with price and complexity. Get a written quote.
Bank attorney About $650 to $750 Your lender's attorney; the buyer pays this fee.
Lender fees About $1,000 to $1,500 Application, processing and underwriting fees vary by lender.
Appraisal $300 to $1,500 Depends on price and property type.
Municipal and title searches About $350 to $500 Checks for open permits, violations and liens.
Recording fees (deed and mortgage) Several hundred to $1,500+ Nassau adds a $300 block fee and a $270 tax map verification letter for each document recorded. Suffolk charges its own verification fees.
Tax and insurance escrows 2 to 6 months of property taxes, plus the first year of homeowners insurance Not a fee, but cash you need at closing. Long Island property taxes make this a large number.
Property tax and fuel adjustments Varies You reimburse the seller for taxes they prepaid past the closing date, and sometimes for oil left in the tank.

Buying a co-op? Co-op buyers skip title insurance and the mortgage recording tax. Instead they pay for a lien search, a recognition agreement and UCC filing, plus any building fees. The mansion tax still applies at $1 million or more.

Seller Closing Costs on Long Island

Sellers have fewer line items than buyers. Outside of commission, the main ones are the state transfer tax and the seller's attorney.

Cost Typical Amount Notes
Real estate commission Negotiated There is no standard rate. Commission is set by agreement between you and your listing broker, and since 2024 any offer of compensation to a buyer's broker is a separate, negotiable decision.
NYS real estate transfer tax 0.4% of the price ($4 per $1,000) Paid by the seller on every Long Island sale. The higher NYC rates do not apply in Nassau or Suffolk.
Seller's attorney Commonly $2,000 to $4,000 Get a written quote.
Mortgage payoff and satisfaction A few hundred dollars Covers the title closer's pick-up fee and recording the satisfaction of your mortgage. In Nassau this includes the $300 block fee and the $270 tax map verification letter.
Miscellaneous title fees About $200 to $500 Clearing old liens or judgments can add more.
Co-op items Varies by building Co-op sellers may owe a flip tax (often 1% to 3% of the price, if the building has one), a co-op attorney fee and move-out fees.
Concessions or credits Negotiated Any credit you agree to give the buyer at closing, for example for repairs found at inspection.

Sellers also get money back at closing: the buyer reimburses you for property taxes you prepaid beyond the closing date.

Buying on the East End: The Peconic Bay Tax

Buyers in the five East End towns pay an extra one-time transfer tax that can easily be the largest item on their closing statement. It funds open-space preservation and, in most of those towns, affordable housing.

Town Rate on the Taxable Portion First-Time Buyer Exemption
East Hampton 2.5% (2% preservation + 0.5% housing fund) Yes, with eligibility limits
Southampton 2.5% (2% preservation + 0.5% housing fund) Yes, with eligibility limits
Shelter Island 2.5% Yes, with eligibility limits
Southold 2.5% Yes, with income and price limits
Riverhead 2% Historically no; confirm current status with your attorney

The tax applies only above an exempt allowance, which differs by town and by whether the land is improved or vacant. Exemption rules have changed several times since 2021, so confirm the current figures with your attorney before you budget.

Other things that change the math:

  • New construction. Buyers of new homes or new condos are often asked by contract to pay costs a seller normally pays, such as the transfer tax and the seller's attorney.
  • Seller concessions. A buyer can negotiate a credit toward closing costs, but lenders cap how much is allowed.

Worked Example: A $750,000 Home in Nassau County

On a $750,000 single-family home with a $600,000 mortgage, the buyer's fees come to roughly $16,100 (about 2.1%), or about $23,500 once escrows are funded. The seller pays roughly $6,450 plus commission.

Buyer (20% down, $600,000 loan)

Item Estimate
Mortgage recording tax (0.80% of $600,000, less $30) $4,770
Owner's title insurance $3,375
Lender's title insurance $780
Buyer's attorney $2,500
Recording fees (deed and mortgage, incl. block and tax map fees) $1,545
Lender fees $1,430
Bank attorney $700
Appraisal $600
Municipal searches $400
Closing fees subtotal $16,100
Tax escrow (4 months, assuming $15,000/year in taxes) $5,000
First-year homeowners insurance (assumed) $2,400
Total cash for closing costs $23,500

Seller

Item Estimate
NYS transfer tax (0.4%) $3,000
Seller's attorney $2,500
Mortgage satisfaction recording (Nassau) $600
Title closer pick-up and misc. title fees $350
Total before commission $6,450
Commission As negotiated

At $1,000,000 or more, add the 1% mansion tax for the buyer: $10,000 on a $1 million purchase. That's why buyers and sellers sometimes negotiate hard around that price point.

Frequently Asked Questions

Who pays the transfer tax in New York?

The seller pays the 0.4% New York State transfer tax. The buyer pays the 1% mansion tax when the price is $1 million or more.

Is there a mansion tax on Long Island?

Yes. The 1% New York State mansion tax applies statewide on residential purchases of $1 million or more. The higher, tiered mansion tax rates apply only in New York City.

What is the mortgage recording tax in Nassau and Suffolk?

The total rate is 1.05% of the loan. On one- and two-family homes and residential condos, the borrower pays 0.80% and the lender pays the rest.

Can closing costs be negotiated?

Some can. Attorney fees, lender fees and commission are negotiable, and buyers can ask for a seller credit. Taxes and government recording fees are fixed.

Are closing costs cheaper for a co-op?

Often, yes. Co-op buyers don't pay title insurance or mortgage recording tax, though building fees and flip taxes can offset some of the savings.

How much cash should I have for closing on Long Island?

Plan for roughly 3% to 4% of the price on top of your down payment once escrows are included. Your lender's Loan Estimate will give you a written figure early in the process.

About the Author

[Your name] is the Broker/Owner of Educators Realty in Syosset, NY, and teaches the New York State Real Estate Salesperson licensing course at Molloy University. Educators Realty helps buyers, sellers, landlords and tenants across Long Island and the five boroughs. Have a question about your closing costs? Call (516) 517-2400.

Sources

This article is for general education and is not legal, tax or financial advice. Closing costs vary by property and transaction; consult your attorney and lender for exact figures. Educators Realty is committed to the letter and spirit of federal, New York State and local fair housing laws. Equal Housing Opportunity.