How much are closing costs for buyers on Long Island?
Most Nassau and Suffolk buyers should budget roughly 2% to 5% of the purchase price for closing costs, on top of the down payment. The largest local items are the mortgage recording tax (about 0.8% of the loan on most one- and two-family homes), title insurance, your attorney's fee and prepaid property taxes. Homes priced at $1 million or more add New York's 1% "mansion tax," and the five East End towns add a Peconic Bay transfer tax.
What buyer closing costs include
Your real estate attorney's fee. In New York, the buyer and the seller each usually hire an attorney to negotiate the contract and handle the closing.
Lender charges: application or origination fees, any points you buy, the appraisal and the credit report.
Title insurance and the title search. New York title insurance premiums follow filed rate schedules, so the cost depends mostly on the price and the loan amount.
Mortgage recording tax, if you finance the purchase.
County Clerk recording fees for the deed and the mortgage.
Prepaid items: property tax adjustments with the seller, the first year of homeowners insurance and the lender's escrow cushion.
Inspections and survey: home inspection, survey and, where they apply, termite, oil tank or cesspool inspections.
Mortgage recording tax in Nassau and Suffolk
Both counties charge a total mortgage recording tax of 1.05% of the loan amount. On a one- or two-family home the lender pays 0.25% of that, so the borrower typically pays about 0.80%. On a $600,000 mortgage that is roughly $4,800.
Cash buyers do not pay mortgage recording tax because no mortgage is recorded.
The 1% mansion tax at $1 million and up
New York State charges an additional 1% transfer tax, paid by the buyer, when a residential property sells for $1,000,000 or more. It applies to the whole price, not just the amount over $1 million: a $1,200,000 purchase means $12,000. A purchase at $995,000 pays none of it.
With Nassau's median single-family price above $900,000 in 2026, many buyers land near this line. It is worth knowing before you write an offer.
The Peconic Bay tax in the East End towns
Buyers in East Hampton, Riverhead, Shelter Island, Southampton and Southold pay a Community Preservation Fund tax on the part of the price above a town exemption. Since the 2023 changes, the rate is 2% in Riverhead and 2.5% in the other four towns.
Exemptions for improved property are $150,000 in Riverhead, $200,000 in Southold and $400,000 in East Hampton, Shelter Island and Southampton (in those three towns, sales of $2 million or more get no exemption). A first-time homebuyer exemption also exists; confirm eligibility with the town before you count on it.
What buyers usually do not pay
The basic New York State transfer tax ($2 for every $500 of price, or 0.4%) is normally paid by the seller, unless the contract says otherwise.
How to keep closing costs down
Compare Loan Estimates from at least two lenders. Lender fees and points vary more than most other items.
Ask your attorney for the fee in writing before you sign anything.
Ask about a seller credit toward closing costs. In multiple-offer situations sellers are less likely to agree, so weigh it against the strength of your offer.
Check down payment and closing cost assistance programs early. As of October 2026, several Long Island programs were listed as closed, so confirm current status with the program or your lender.
Do I pay closing costs if I pay cash?
Yes, but less. Cash buyers skip lender fees and the mortgage recording tax, but still pay their attorney, title insurance, recording fees and any mansion or Peconic Bay tax that applies.
When will I know my exact closing costs?
Your lender must give you a Loan Estimate within three business days of your application and a Closing Disclosure at least three business days before closing. Your attorney and the title company confirm the rest.
Who pays the mansion tax, the buyer or the seller?
The buyer. New York law makes the buyer liable for the 1% tax on residential purchases of $1 million or more.
Vladimir Reyes Fuentes, Licensed Real Estate Salesperson, Khan & Sons Realty LLC, 1025 Old Country Rd, Suite 225, Westbury, NY 11590. (516) 595-5932. Serving Nassau & Suffolk Counties.