NYC Real Estate Capital Gains Tax Calculator

Purchase Price

Buyer Closing Costs

Capital Improvements

Depreciation

Sale Price

Seller Closing Costs

Mortgage Loan Balance

Annual Adjusted Gross Income

Filing Status

Federal Capital Gains Tax Rate (%)

Net Income Investment Tax Rate (%)

State & City Capital Gains Tax Rate (%)

Depreciation Recapture Tax Rate (%)

Did You Acquire the Property Through a 1031 Like-Kind (1031) Exchange During the Past 5 Years?

Do You Plan on Relinquishing the Property in a Like-Kind (1031) Exchange?

Are You Subject to Expatriate Tax?

Have You Owned the Property for at Least 2 out of the Past 5 Years?

Has the Property Been Used as Your Principal Residence for at Least 2 out of the Past 5 Years?

Have You Taken the Exclusion on Another Property Sale in the Past 2 Years?

Federal Capital Gains Tax Rate (%)
Net Income Investment Tax Rate (%)
State & City Capital Gains Tax Rate (%)
Depreciation Recapture Tax Rate (%)
Selling Price Less Selling Expenses
Adjusted Basis
Capital Gains
Taxable Capital Gains
Federal Capital Gains Tax
Net Income Investment Tax
State Capital Gains Tax
Total Capital Gains Tax
Depreciation Recapture Tax
Total Taxes
Gross Sale Proceeds (Equity)
After-Tax Sale Proceeds (Equity)
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Glossary

Net Income Investment Tax (NIIT)

The Net Investment Income Tax (NIIT) is an additional tax of 3.8% payable on capital gains for high income earners. NIIT income thresholds are $200k for single filers, $125k for married individuals who file separately, and $250k for married filing jointly. The tax went into effect on January 1st, 2013 as part of the Affordable Care Act signed into law by President Barack Obama.

Depreciation Recapture Tax

If you sell an investment property for which you previously deducted depreciation against against rental income, you are required to pay back this deduction through the depreciation recapture tax. The depreciation recapture tax is based on your ordinary income tax rate and is capped at 25%.

FAQ

Does NYC have a local real estate capital gains tax?

Sellers in New York City pay ordinary state and city income tax rates on any real estate capital gains. There are no separate capital gains tax rates for NYC or New York State. This means that any sale profits will be taxed both by New York City and New York State based on your applicable local and state tax brackets. Sellers are also responsible for Federal capital gains taxes in addition to the Net Investment Income Tax for high earners.

How much are total capital gains taxes when selling real estate in NYC?

Long-term Federal capital gains tax rates vary from 0% to 20% based on income levels. The Net Investment Income Tax (NIIT) is an additional tax of 3.8% payable on capital gains for high income earners. NIIT income thresholds are $200k for single filers, $125k for married individuals who file separately, and $250k for married filing jointly. New York State marginal tax rates are between 4% and 8.82%. New York City has four tax brackets ranging from 3.078% to 3.876%.

Is it possible to avoid paying real estate capital gains taxes?

Yes. If you’re selling your main home, you may be eligible to exclude up to $250k of the gain from capital gains taxes as a single filer or up to $500k if you are married filing jointly. You can also defer the payment of capital gains taxes through a 1031 Exchange for qualifying investment properties.

How much are seller closing costs in NYC?

Seller closing costs in NYC are between 8% to 10% of the sale price. Closing costs include a traditional 6% broker fee, combined NYC & NYS Transfer Taxes of 1.4% to 2.075%, legal fees, a building flip tax if applicable as well as building and miscellaneous fees. Save up to 6% when selling through Hauseit’s Assisted FSBO Listing Service, or consider 1% Full Service for a traditional yet lower cost sale experience.

Is it possible to reduce my seller closing costs in NYC?

Yes. You can save up to 6% when selling through Hauseit’s Assisted FSBO Listing Service, or consider 1% Full Service for a traditional yet lower cost sale experience. It’s also possible to further reduce your seller closing costs through a Purchase CEMA if you’re selling a condo or house with an existing loan balance and the purchaser is financing.

Published: April 3rd, 2020
Disclosure: Hauseit® and its affiliates do not provide tax, legal, financial or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, financial or accounting advice. No representation, guarantee or warranty of any kind is made regarding the completeness or accuracy of information provided. Hauseit LLC is a Licensed Real Estate Broker, licensed to do business in New York under license number 10991232340. Principal Office: 148 Lafayette Street, New York, NY 10013.
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