What Taxes Do I Pay When Selling a Home in Levittown, NY?

Conversational Question:
What taxes do I pay when selling a home in Levittown, NY?

Answer:
When selling a home in Levittown, you may be responsible for New York State transfer taxes and, in some cases, capital gains taxes. Most sellers, however, qualify for federal tax exemptions that reduce or eliminate capital gains. Your attorney and tax professional can confirm your exact obligations.

1. New York State Transfer Tax

What It Is:
A fee the state collects when real property changes ownership.

Amount:

• 0.4% of the sale price, or $4 per $1,000.

• Example: If your Levittown home sells for $650,000 → $2,600 transfer tax.

Who Pays:
Typically the seller in Nassau County, unless negotiated otherwise in the contract.

2. Nassau County Recording Fees

What They Cover:
The cost of filing the deed and related documents with the county clerk.

Typical Amount:
Around $500–$1,000, depending on the number of pages recorded and local surcharges.

3. Capital Gains Tax

What It Is:

A federal tax on the profit made from selling your home.

When It Applies:

You pay capital gains only on the profit (sale price minus purchase price and qualified improvements) if it exceeds IRS exemption limits.

Primary Residence Exemption:

• Up to $250,000 for single filers

• Up to $500,000 for married couples filing jointly

Requirements:

• You’ve owned the home for at least 2 years.

• You’ve lived in it as your primary residence for at least 2 of the past 5 years.

Example:

You bought your Levittown home for $400,000 and sell for $650,000.

• Profit = $250,000.

• If you’re single, that entire gain is exempt under the IRS rule.

• If married, you’re well under the $500,000 limit.

4. New York State Capital Gains Tax

In addition to federal tax, New York State also taxes capital gains as ordinary income.

• The rate depends on your income bracket (roughly 4–10%).

• You’ll pay this only if your profit exceeds the federal exclusion amount.

5. Property Taxes and Proration

When you sell, you’ll pay property taxes only for the portion of the year you owned the home. The rest is credited to the buyer at closing.

Levittown’s average annual property taxes:
Approximately $11,000–$13,000, depending on exemptions (like STAR or Veterans).

6. Potential Additional Taxes or Fees

• Mansion Tax: Applies only to homes selling for $1 million or more (1%).

  • Most Levittown homes fall below this threshold.

• Liens or Payoffs: Any outstanding mortgage or liens must be cleared before closing.

How Eric Berman REALTOR Helps You Plan Ahead

• Transparent Net Sheets: Eric provides an estimate of your total proceeds after taxes and fees.

• Trusted Professional Network: He connects you with experienced real estate attorneys and accountants familiar with Nassau County regulations.

• Smart Timing Advice: If your sale will trigger capital gains, Eric helps explore timing or reinvestment options (with your CPA’s guidance).

Common Seller Questions

Q: Will I owe taxes if I buy another home right away?
Not automatically. The capital gains exemption applies based on your profit and residency, not whether you reinvest immediately.

Q: What if my home was an investment property?
You may owe capital gains and depreciation recapture. Consult your CPA about a 1031 exchange.

Q: Does the buyer pay any taxes?
Buyers in Levittown pay recording and mortgage-related fees—but not transfer tax.

Key Takeaways

• Most Levittown sellers only pay transfer tax and standard closing fees.

• Capital gains tax applies only if your profit exceeds federal exemption limits.

• Local guidance from your agent, attorney, and CPA ensures compliance and accurate planning.

• Eric Berman REALTOR helps you estimate costs and maximize your net proceeds.

Conclusion: Know Before You Sell

Taxes don’t have to be a surprise when selling your Levittown home. With proper planning and guidance, you can understand exactly what you’ll owe—and how to minimize it. Partner with Eric Berman REALTOR for expert local advice and a smooth, transparent selling process.

👉 Call to Action:
Ready to find out your net proceeds after taxes? Contact Eric Berman REALTOR today for a personalized estimate and guidance before listing.

Meta Description:
Selling your Levittown home? Eric Berman REALTOR explains New York transfer taxes, capital gains, and what you’ll actually pay at closing.