On a $1.2 million co-op sale with a 2% flip tax, you will owe $24,000 to the building at closing. In my experience closing co-op sales across Manhattan and Brooklyn, the flip tax is the cost sellers most often overlook.
What is a Flip Tax?
A flip tax is a transfer fee a cooperative or condominium association charges when a unit sells, either a percentage of the sale price or a fixed dollar amount. Many co-ops and some condos charge one. The building uses it to fund reserves, maintenance, or improvements without raising monthly maintenance, and the amount sits in the governing documents, not in the listing. It is paid to the building, not to the government, so no statute sets the rate.
Types of Flip Taxes in NYC
| Type | How it works | Amount |
|---|---|---|
| Percentage of sale price | A 2% flip tax on a $1,000,000 sale is $20,000. | Set by the building |
| Percentage of profit | Applied to sale price minus your original purchase price and documented capital improvements. A 10% flip tax on a $400,000 profit is $40,000. | Set by the building |
| Fixed amount | A flat fee stated in the building's bylaws, whatever the price. | Set by the building |
| Per share | Co-ops only. Calculated on the shares you own, as a set dollar amount per share sold. | Set by the building |
Flip Tax Varies by Building
Confirm the exact amount in the building's proprietary lease, house rules, or offering plan before you list, and have your real estate attorney verify it.
Who Pays the Flip Tax?
Usually the seller. Some co-ops require the buyer to pay, and who pays can be negotiated in the contract; a buyer occasionally covers it to win a competitive deal.
Active Co-op Listings: Flip Tax May Apply
Factor in flip tax when calculating your net proceeds from these co-ops
16 E 132nd Street #1B
Central Harlem
526 W 158th Street #31
Washington Heights
Listing information provided courtesy of the Real Estate Board of New York's Residential Listing Service (RLS). Information is deemed reliable but not guaranteed. Sale listings verified. ©2026 REBNY. RLS data displayed by Keller Williams NYC.
The Impact of Flip Taxes on Your Bottom Line
Build the flip tax into your list price and pricing strategy from day one. Example: a co-op sold at $1,200,000 with a 2% flip tax.
| Seller cost on a $1,200,000 co-op sale | Amount |
|---|---|
| Flip tax (2%, paid to the building) | $24,000 |
| NYC transfer tax (1.425% above $500,000) | $17,100 |
| NYS transfer tax (0.4%) | $4,800 |
| Total before commission and mortgage payoff | $45,900 |
The flip tax is separate from the city and state transfer taxes, which a seller normally also pays (see the transfer tax guide). The mansion tax is paid by the buyer on purchases of $1 million or more.
How to Prepare for a Flip Tax
- Price it in. Absorb it into your asking price or disclose it up front.
- Settle who pays before offers arrive.
Active Listings
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Milton Coste
Licensed Real Estate Associate Broker · Keller Williams NYC
License No. 10301213304 · 360 Madison Avenue, 9th Floor, NY 10017
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MLS & Listing Data Disclaimer: This information is not verified for authenticity or accuracy and is not guaranteed and may not reflect all real estate activity in the market. ©2026 The Real Estate Board of New York, Inc. All rights reserved. Listing information is provided solely for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Listing data sourced from REBNY RLS and OneKey MLS. Listing Courtesy of Keller Williams NYC.
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Content published: February 2026 · Milton Coste · Keller Williams NYC · License No. 10301213304
