Form TP-584 is the Combined Real Estate Transfer Tax Return that you must file with the county clerk whenever real property changes hands in New York State, and it is due no later than the 15th day after the delivery of the deed. The form combines the Real Estate Transfer Tax (RETT), the Credit Line Mortgage Certificate, and a certification of the seller’s nonresident estimated income tax obligation under Tax Law Section 663 into a single filing.
Skipping or botching this form blocks your deed from being recorded, which means your buyer never legally takes title. According to the New York State Department of Taxation and Finance, the state collected over $1.4 billion in real estate transfer taxes in fiscal year 2024, and roughly 14% of those filings triggered correction notices for line-item errors.
Here is what you will learn in this guide:
- 📋 How to complete every line of Form TP-584, Schedules A through E, including the lesser-known credit line mortgage certification.
- 🏙️ The differences between Form TP-584, Form TP-584-NYC, and the supplemental Form TP-584.1 for special transfer types.
- 💰 How to calculate the base transfer tax, the 1% Mansion Tax, and the new progressive Additional Base Tax tiers up to 3.9%.
- 🏢 The controlling-interest transfer rule that catches LLC, partnership, and corporate deals that try to avoid recording a deed.
- ⚠️ The penalty math, the joint-and-several liability between grantor and grantee, and the seven costliest mistakes filers make.
What Form TP-584 Actually Is
Form TP-584 is a multi-purpose return that the State of New York requires for nearly every conveyance of real property or interest in real property. It is authorized by Article 31 of the New York Tax Law, which imposes the Real Estate Transfer Tax on the grantor (seller). The form also satisfies the recording requirement under Section 1409 of the Tax Law, which directs the recording officer to refuse any deed not accompanied by a completed return.
The form is combined because it bundles three separate obligations into one document. First, it reports and pays the state transfer tax of $2 per $500 of consideration. Second, it captures the buyer’s certification regarding the 1% Mansion Tax on residential property selling for $1 million or more. Third, it serves as the Credit Line Mortgage Certificate, which protects the buyer from inheriting an undisclosed home equity line balance.
The state also publishes a separate Form TP-584-NYC for properties located in any of the five boroughs, because New York City has its own Real Property Transfer Tax (RPTT) administered by the NYC Department of Finance. A misconception here is that filing the city RPTT replaces the state TP-584. It does not. You must file both, and the recording officer will reject the deed if either is missing.
The consequence of treating TP-584 as a formality is severe. Recording delays push back the buyer’s homeowner’s insurance binder, mortgage funding, and lien priority. In a hot market, a one-week delay caused by a rejected TP-584 can cost a seller a rate-lock extension fee of $1,000 or more.
When You Must File Form TP-584
You must file Form TP-584 whenever there is a conveyance of real property within New York State, and the definition of conveyance is intentionally broad. Under 20 NYCRR Section 575.1, a conveyance includes deeds, leases of 49 years or more, options, contracts to assign or grant a leasehold, and transfers of controlling interests in entities that own New York real estate.
The filing deadline is the 15th day after the delivery of the deed. Delivery generally means the closing date, not the date the deed is recorded. Missing this 15-day window triggers a 10% late-filing penalty plus interest accruing at the underpayment rate published quarterly by the Tax Department.
Standard Deed Transfers
The most common trigger is a recorded deed conveying fee simple title from a seller to a buyer. Every bargain-and-sale deed, warranty deed, quitclaim deed, and executor’s deed requires its own TP-584 even if no money changes hands. A zero-consideration transfer between family members still requires the form, because the Tax Department needs to verify the exemption claimed on Schedule B.
The consequence of skipping the form on a “free” family transfer is that the county clerk will not record the deed at all. Without recording, the recipient has no protection against subsequent purchasers or lien creditors who file first.
Leasehold Transfers of 49 Years or More
A lease that runs 49 years or longer counts as a taxable conveyance under Tax Law Section 1401(e). This rule prevents long-term ground leases from being used to disguise a sale and avoid the transfer tax. The consideration on Schedule B is the present value of all rent due under the lease plus any additional consideration paid for the leasehold rights.
A common misconception is that a 50-year lease with renewal options is treated like a 25-year lease with options. It is not. The state aggregates fixed terms and options that the lessee controls.
Controlling Interest Transfers
If a person or related group acquires or transfers a 50% or greater interest in an entity that owns New York real estate, the deal is a taxable conveyance under Tax Law Section 1401(e). This applies even though no deed is recorded. The grantor must file Form TP-584 along with the supplemental Form TP-584.1 Schedule F within 15 days of the transfer.
The consequence of ignoring the controlling-interest rule is brutal. The Tax Department can assess the unpaid tax, a 10% penalty, and interest going back for years, and both the buyer and seller are jointly liable.
Form TP-584 Line-by-Line Walkthrough
The current version of Form TP-584 runs four pages and is divided into Schedules A through E, plus the Credit Line Mortgage Certificate. Each section asks a specific question that triggers different tax treatment, so the order matters. Filers should complete the form from front to back without skipping.
You should print the form or use the fillable PDF on the Department of Taxation and Finance website. Handwritten forms are accepted, but typewritten or PDF-filled returns are processed faster and reduce data-entry errors at the county clerk’s office.
Schedule A: Information Relating to Conveyance
Schedule A collects the names, addresses, and taxpayer identification numbers of the grantor (seller) and grantee (buyer). It also asks for the property location, tax map designation (section, block, and lot), and the type of property using a numbered code.
Line 1 asks for the date of conveyance, which is the deed delivery date and not the contract date. Line 2 asks for the type of property using codes 1 through 8, where code 1 is a one- to three-family house and code 7 is vacant land. Entering the wrong property type code can throw off the Mansion Tax calculation, because residential property is treated differently than commercial.
The consequence of mismatching the names on Schedule A versus the deed is a recording rejection. The grantor’s name on the deed, the TP-584, and the IT-2663 (if applicable) must match character-for-character.
Schedule B: Real Estate Transfer Tax Return
Schedule B is where the tax is actually computed. Line 1 is the consideration, which includes cash, the principal of any mortgage taken or assumed, the value of stock or property given in exchange, and the cancellation of indebtedness. Line 2 allows for the deduction of any continuing lien on the property if the conveyance is of a one- to three-family house, a residential cooperative apartment, or an individual residential condominium unit.
Line 3 is the taxable consideration. The state tax on Line 5 is $2 for each $500 of taxable consideration or fractional part. Line 6 is the additional 1% Mansion Tax that applies only to residential conveyances of $1 million or more.
The 2019 budget legislation added a progressive Additional Base Tax that stacks on top of the original mansion tax for properties in New York City. The rates climb from 0.25% at $2 million up to 2.9% at $25 million and above, which means the highest-end Manhattan condos face a combined state-level tax close to 3.9% before the city RPTT is added under NYC Administrative Code Section 11-2102.
Schedule C: Credit Line Mortgage Certificate
Schedule C protects the buyer from being charged additional mortgage recording tax if the seller had a home equity line of credit (HELOC) on the property. The grantor must check one of four boxes that describes the credit line situation, ranging from “no credit line mortgage” to “the credit line will be paid off and discharged at closing.”
The consequence of checking the wrong box is real money. If the seller falsely claims there is no credit line mortgage and one exists, the buyer can be hit with mortgage recording tax on the maximum principal balance the seller could have re-borrowed under the line.
Schedule D: Certification of Exemption from the Estimated Personal Income Tax
Schedule D is the nonresident seller’s certification under Tax Law Section 663. If the seller is a nonresident individual or a nonresident estate or trust, the seller must pay estimated income tax on the gain using Form IT-2663 before the deed can be recorded.
A New York resident seller checks the box certifying residency, which exempts the transaction from the IT-2663 requirement. Sellers who are exempt because the property is their principal residence under Internal Revenue Code Section 121 also check the appropriate box on Schedule D.
Schedule E: Cooperative Housing Corporation Information
Schedule E is reserved for transfers of shares in a cooperative housing corporation. Co-op transfers do not involve a deed, so the form is filed directly with the Tax Department rather than with a county clerk. The consideration includes the cash, the assumed share loan, and the proportionate share of the underlying cooperative mortgage.
A common misconception is that co-op transfers escape the transfer tax because no deed is recorded. They do not. The cooperative corporation is required to file the TP-584 and remit the tax on behalf of the transferor.
TP-584 Supplemental Schedules
In addition to the main form, the Tax Department publishes Form TP-584.1, which is a supplemental schedule used for specific transfer types. You attach the relevant schedule to your TP-584 only when one of the special situations applies. Filing the wrong supplemental schedule, or omitting one that applies, is treated as a material error that subjects the return to audit.
The five supplemental schedules cover conveyances pursuant to or in lieu of foreclosure, conveyances to a cooperative housing corporation, contract assignments, transfers of controlling interests, and transfers of property to a business entity in exchange for an interest.
Schedule A (TP-584.1): Conveyance Pursuant to Foreclosure
This schedule is filed when the property is conveyed to the mortgagee through a referee’s deed in foreclosure or by a deed in lieu of foreclosure. The consideration is the amount of the unpaid mortgage debt plus any cash paid. The consequence of misreporting the consideration is that the mortgagee will overpay or underpay the state tax, and the underpayment carries a 10% penalty.
Schedule F (TP-584.1): Controlling Interest Transfers
Schedule F is required for every transfer of a controlling interest in an entity that owns New York real property. The schedule asks for the entity name, the percentage interest transferred, the fair market value of the underlying real estate, and the proration if the entity holds non-real-estate assets. The example in the next section walks through how Carlos Ramirez handled this filing for an LLC sale.
Three Real-World Scenarios
The three most common TP-584 scenarios illustrate how a small change in facts produces a very different tax result. Each table below shows the choice the filer made and the consequence that followed. These mini-cases are drawn from typical patterns reported in the Department of Taxation and Finance Advisory Opinions.
Scenario 1: Standard Residential Sale
Maria Gonzalez sells her single-family home in Albany for $450,000. The buyer takes the property subject to no continuing lien. Maria is a New York resident, so Schedule D is straightforward.
| Filing Choice | Tax Consequence |
|---|---|
| Reports $450,000 on Schedule B, Line 1 | State transfer tax of $1,800 ($2 per $500) is owed by Maria as grantor |
| Checks “no credit line mortgage” on Schedule C | Buyer is protected from any future HELOC claim |
| Checks resident box on Schedule D | No IT-2663 required, deed records same day |
Scenario 2: Manhattan Condo Above $2 Million
Jonathan Park buys a Manhattan condominium from Lisa Chen for $2,750,000. Lisa is a Florida resident, so the IT-2663 nonresident estimated tax applies.
| Filing Choice | Tax Consequence |
|---|---|
| Reports $2,750,000 on TP-584 and TP-584-NYC | State tax of $11,000, Mansion Tax of $27,500, plus Additional Base Tax of 0.5% ($13,750) |
| Files IT-2663 with estimated personal income tax | Florida resident pays 10.9% on gain to clear the deed |
| Pays NYC RPTT at 1.425% | Additional $39,187.50 to NYC Department of Finance |
Scenario 3: LLC Controlling Interest Transfer
Carlos Ramirez sells his 100% membership interest in Ramirez Holdings LLC, which owns a small apartment building in Buffalo worth $1.2 million. No deed is recorded, but the transfer is still taxable.
| Filing Choice | Tax Consequence |
|---|---|
| Files TP-584 with Schedule F of TP-584.1 | State transfer tax of $4,800 on the $1.2 million underlying value |
| Mansion Tax does not apply (commercial property) | Saves $12,000 compared to a residential transfer |
| Files within 15 days of the membership transfer | Avoids the 10% late-filing penalty |
How to Calculate the Tax
The base New York State real estate transfer tax is $2 for every $500 of consideration or fractional part thereof. The math is simple division, but the definition of consideration is where most filers stumble. Consideration is not just the sales price. It includes the principal of any mortgage assumed by the buyer, the value of any property given in exchange, the assumption of liabilities, and the cancellation of debt.
For residential conveyances of one-, two-, or three-family homes, residential cooperative apartments, and individual residential condominium units, the seller may deduct any continuing lien from the consideration before calculating the tax. A continuing lien is a mortgage or other lien that survives the closing and is not paid off by the seller.
The 1% Mansion Tax
The Mansion Tax under Tax Law Section 1402-a is a 1% surtax on the buyer (not the seller) for residential conveyances of $1 million or more. The tax is computed on the full consideration without any continuing lien deduction. The consequence of underreporting consideration to avoid the Mansion Tax is a fraud penalty of up to 50% of the underpayment.
A common misconception is that the Mansion Tax applies to commercial property. It does not. Office buildings, hotels, and pure investment property are not subject to the 1% surtax, although they remain subject to the base $2 per $500 transfer tax.
The Additional Base Tax (Progressive Mansion Tax)
The 2019 New York budget enacted a progressive Additional Base Tax that applies to residential conveyances of $2 million or more located in cities with a population of one million or more. In practice, this means New York City. The tiers start at 0.25% for properties priced from $2 million to $3 million and climb to 2.9% for properties of $25 million and above.
The consequence at the top of the market is dramatic. A $30 million Tribeca penthouse triggers a state base transfer tax of $120,000, a Mansion Tax of $300,000, and an Additional Base Tax of $870,000, before the NYC RPTT of $1,612,500 is added. That is more than $2.9 million in combined transfer taxes on a single closing.
Joint and Several Liability
Although the grantor is primarily liable for the base transfer tax and the grantee is primarily liable for the Mansion Tax, the statute imposes joint and several liability when the primary party fails to pay. Under Tax Law Section 1404(a), if the seller does not pay the base tax, the buyer must pay it. If the buyer does not pay the Mansion Tax, the seller must pay it.
The practical consequence is that title companies routinely escrow funds at closing equal to 110% of the projected tax to protect both sides from a later notice of deficiency. A common misconception is that the contract can shift the legal liability between the parties. The contract can shift the economic burden, but the state can pursue either party.
Mistakes to Avoid
Filers repeat the same handful of errors year after year, and each one produces a specific negative outcome. Avoiding these seven mistakes will move your closing from the rejection pile into the recorded pile on day one.
- Filing past the 15-day deadline. The consequence is a 10% late-filing penalty plus interest at the underpayment rate from the Tax Department interest rate schedule.
- Mismatching grantor or grantee names across the deed, the TP-584, and the IT-2663. The consequence is an outright recording rejection by the county clerk.
- Forgetting to subtract a continuing lien on a residential conveyance. The consequence is overpaying the base transfer tax with no automatic refund mechanism.
- Failing to check the correct Credit Line Mortgage box on Schedule C. The consequence is exposing the buyer to mortgage recording tax on the maximum HELOC balance.
- Omitting Form IT-2663 for a nonresident seller. The consequence is that the county clerk will refuse to record the deed until the estimated tax is paid.
- Misclassifying a controlling-interest entity sale as not subject to transfer tax. The consequence is a back-tax assessment plus penalty and interest, with joint liability for both sides.
- Treating a quitclaim deed between family members as exempt without filing the form. The consequence is that the transfer never gets recorded, and the recipient has no protection against creditors.
Do’s and Don’ts
These rules are not optional. Each one has a direct reason rooted in the statute or the recording officer’s checklist.
- Do file the TP-584 with the county clerk in the county where the property is located, because Tax Law Section 1409 ties the filing to the recording officer.
- Do use the fillable PDF version of the form, because typed entries reduce keypunch errors that cause notice letters.
- Do run a name-match check between the deed and Schedule A before the closing table, because a single typo will bounce the package.
- Do compute the Additional Base Tax separately from the Mansion Tax, because the two taxes stack rather than replace one another.
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Do keep a copy of the recorded TP-584 for at least three years, because the Tax Department has three years to audit under Tax Law Section 1410.
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Don’t leave Schedule C blank, because an unchecked Credit Line Mortgage Certificate is treated as an admission of an outstanding HELOC.
- Don’t assume a zero-consideration deed is exempt from filing, because the form is still required to claim the exemption.
- Don’t combine multiple parcels with different tax map numbers on a single TP-584 unless they are conveyed by the same deed, because separate deeds require separate returns.
- Don’t round the consideration to the nearest thousand, because the state computes the tax on the exact figure and rounding triggers a deficiency notice.
- Don’t rely on the buyer’s attorney to file the form, because the grantor remains primarily liable and is the party assessed if the filing is late.
Pros and Cons of DIY Filing
Some sellers handle the TP-584 themselves to save on legal fees. Others hire a real estate attorney or use a title company. Each path has trade-offs that depend on the transaction size and complexity.
- Pro: You save attorney fees that typically run from $500 to $1,500 for a routine residential closing.
- Pro: You learn the form, which helps in future transactions and in evaluating professional advice.
- Pro: You control the timing of the filing and can submit on the day of closing.
- Pro: You avoid the risk of a third-party error being blamed back on you under the joint liability rule.
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Pro: You can claim exemptions you might overlook if you hand the file to a paralegal who does not know your facts.
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Con: A single line-item error can delay recording by a week or more.
- Con: You bear personal exposure to the 10% late-filing penalty if you miss the 15-day window.
- Con: Controlling-interest transfers and exchanges of property require legal analysis that most non-lawyers cannot perform.
- Con: Title insurance underwriters may refuse to insure without an attorney certification.
- Con: The Mansion Tax and Additional Base Tax math is unforgiving, and a small classification error can cost thousands.
Where and How to File
For a transfer of real property other than a cooperative, you file Form TP-584 with the recording officer of the county where the property is located. The recording officer accepts the form together with the deed, the Form RP-5217 Real Property Transfer Report, and the tax payment. The tax is paid by check or money order made payable to the county clerk, who then remits the state’s share to the Department of Taxation and Finance.
For a transfer of a cooperative or for a controlling-interest transfer where no deed is recorded, you file directly with the Department of Taxation and Finance at the address printed on the form. The tax is paid by check made payable to the Department of Taxation and Finance.
NYC properties require an additional electronic filing through the ACRIS system maintained by the NYC Department of Finance. Through ACRIS, you submit both the state TP-584-NYC and the city RPTT return. The system issues a receipt that title companies use to confirm the package is complete.
The consequence of filing in the wrong county is a recording rejection and a re-filing fee. Property that straddles two counties is filed in each county separately, with the consideration allocated by acreage or by appraisal.
Key Entities Behind Form TP-584
The TP-584 ecosystem involves five key entities that each play a distinct role. Knowing who does what speeds up problem solving when something goes sideways.
- The New York State Department of Taxation and Finance is the agency that designs the form, issues the advisory opinions, and audits returns.
- The county clerk or city register acts as the recording officer who collects the form and the tax at the point of recording.
- The NYC Department of Finance runs ACRIS and administers the city RPTT for the five boroughs.
- The grantor (seller) is primarily liable for the base transfer tax under Tax Law Section 1404.
- The grantee (buyer) is primarily liable for the Mansion Tax and the Additional Base Tax, and is jointly liable for the base tax if the seller fails to pay.
Recent Rulings and Guidance
The Tax Department publishes Advisory Opinions that interpret tricky fact patterns. In TSB-A-23(2)R, the department held that a transfer of a single-member LLC interest to its sole member at dissolution is a mere change of identity and qualifies for the exemption, but the form must still be filed. The consequence of skipping the filing in a mere-change scenario is the loss of the exemption.
In Matter of GKK 2 Herald LLC, the New York State Tax Appeals Tribunal held that step transactions used to fragment a single sale into multiple sub-50% transfers can be collapsed under the controlling-interest rule. The takeaway is that creative structuring to avoid the 50% threshold rarely survives audit.
The 2023 amendments to 20 NYCRR Part 575 clarified that easements granted for fair market value are taxable conveyances. Many filers assumed easements were nontaxable transfers. They are not, and the consideration is the cash paid for the easement.
FAQs
Is Form TP-584 required for every real estate transfer in New York?
Yes. Form TP-584 must accompany the deed at recording for every real property conveyance in New York State, including zero-consideration gifts, executor’s deeds, and quitclaim transfers between family members.
Is the seller always responsible for paying the real estate transfer tax?
Yes. The grantor is primarily liable for the base transfer tax of $2 per $500 of consideration, although a written contract may shift the economic burden of payment to the buyer.
Is the Mansion Tax paid by the buyer or the seller?
Yes, the buyer pays the 1% Mansion Tax on residential conveyances of $1 million or more, but the seller becomes jointly liable if the buyer fails to remit the tax at closing.
Is there a late-filing penalty for Form TP-584?
Yes. A 10% late-filing penalty applies if the form is filed more than 15 days after delivery of the deed, plus interest at the underpayment rate set quarterly by the Tax Department.
Is Form TP-584-NYC different from Form TP-584?
Yes. Form TP-584-NYC is used exclusively for properties in New York City and captures additional data needed for the NYC Real Property Transfer Tax administered through ACRIS.
Is a transfer between spouses subject to the transfer tax?
No. Transfers between spouses or former spouses pursuant to a divorce decree are exempt from the base transfer tax, but Form TP-584 must still be filed to claim the exemption.
Is a controlling-interest transfer in an LLC taxable in New York?
Yes. A transfer of 50% or more of the ownership interest in an entity that owns New York real estate is a taxable conveyance, even though no deed is recorded.
Is Form IT-2663 needed when a New York resident sells property?
No. Form IT-2663 estimated personal income tax applies only to nonresident individual sellers, nonresident estates, and nonresident trusts disposing of New York real property.
Is the continuing lien deduction available for commercial property?
No. The continuing lien deduction is available only for one-, two-, and three-family residential homes, residential condominium units, and residential cooperative apartments.
Is a leasehold of 30 years subject to the transfer tax?
No. Only leasehold conveyances with a term of 49 years or more, including renewal options controlled by the lessee, qualify as taxable conveyances under the statute.
Is the Additional Base Tax applied statewide?
No. The progressive Additional Base Tax of 0.25% to 2.9% applies only to residential conveyances of $2 million or more in cities with a population of one million or more, currently New York City only.
Is Form TP-584 filed electronically?
Yes, for New York City properties through ACRIS, and increasingly for other counties through county-specific e-recording portals, although paper filing remains accepted everywhere in the state.
Related reading
- How to Fill Out New York Form RP-5217 (w/Examples) + FAQs
- How to Fill Out New York Form TP-584.1 (w/Examples) + FAQs
- How to Fill Out New York Form TP-592.2 (w/Examples) + FAQs
- How to Fill Out Pennsylvania Form REV-183 (w/Examples) + FAQs
- How to Fill Out Washington Form REET 84-0001b (w/Examples) + FAQs
- How to Fill Out New York Form NYC-RPT (w/Examples) + FAQs
- How to Fill Out New York Form IT-558 (w/Examples) + FAQs