NYC Co-op Flip Tax Calculator

A flip tax is not a government tax at all. It is a transfer fee that an individual co-op corporation charges on its own shareholders when they sell, and the exact formula lives in that building's proprietary lease, not in any city or state statute. In 25+ years closing co-op sales across Manhattan, Brooklyn, Queens, and the Bronx, I have seen sellers discover their building's flip tax for the first time at the contract stage, sometimes for tens of thousands of dollars they had not budgeted. This calculator lets you enter your own building's formula, whatever it is, and see the dollar amount instantly.

What Is a Co-op Flip Tax?

When you buy a co-op apartment, you are not buying real property directly. You are buying shares in a corporation that owns the building, along with a proprietary lease giving you the right to occupy your unit. Because the co-op corporation controls every transfer of its shares, the corporation's board can attach a fee to that transfer, and many boards do. That fee is the flip tax.

Not every co-op charges one. Some buildings have no flip tax at all, some have a modest one, and some, particularly HDFC cooperatives, charge steep flip taxes designed to recapture the appreciation on a below-market unit and keep the building's pricing in line with its affordability mission. The only way to know your building's actual policy is to read the proprietary lease, the house rules, or ask the managing agent directly.

How NYC Co-ops Calculate the Flip Tax

Three formulas cover the large majority of NYC co-op flip tax clauses. This calculator models all three.

1. Percentage of the sale price

The most common structure. The building charges a set percentage, commonly in the 1% to 3% range, of the gross sale price. On a $1,200,000 sale with a 2% flip tax, the fee is $24,000. This method is the easiest for sellers to estimate early because it scales directly with whatever price the apartment sells for.

2. Flat dollar amount

Some buildings charge a fixed fee regardless of sale price, often somewhere between $1,000 and $5,000, sometimes more in larger buildings. This method is simpler to budget for but means a lower-priced sale pays proportionally more than a higher-priced one.

3. Per-share amount

Co-op ownership is denominated in shares, and some proprietary leases charge a set dollar amount for every share allocated to your unit. If your unit carries 200 shares and the building charges $50 per share, the flip tax is $10,000, independent of the actual sale price. Larger apartments generally carry more shares, so this method still scales roughly with unit size even though it is not tied directly to the sale price.

Who Pays the Flip Tax?

In most NYC co-ops, the seller pays the flip tax, and it comes directly out of the seller's proceeds at closing. That said, the proprietary lease sets this, not custom alone, and a minority of buildings assign the flip tax to the buyer instead. In a competitive negotiation, a buyer sometimes offers to cover the flip tax, or the parties split it, as part of closing the deal. Whatever your building's default rule, the contract of sale should state plainly which party pays.

If you are selling, factor the flip tax into your pricing from the start rather than discovering it at the closing statement. The Seller Net Proceeds Calculator combines the flip tax figure from this page with broker commission, transfer taxes, and attorney fees for your complete bottom line.

Common Flip Tax Mistakes

Flip Tax vs. Transfer Tax vs. Mansion Tax

Sellers and buyers often lump every closing cost together, but a co-op sale can involve up to three separate charges that get confused with each other constantly:

For the government-tax side of a co-op sale, run the numbers on the NYC Transfer Tax Calculator and the NYC Mansion Tax Calculator. The full mechanics of every flip tax formula, with worked examples, are in my NYC Flip Tax Guide for Sellers.

Frequently Asked Questions

What is a co-op flip tax in NYC?

A transfer fee that a co-op corporation charges on the sale of its shares. It is not a government tax. It is set by the building's proprietary lease, house rules, or bylaws, and the money goes to the building, typically into reserves or capital improvements.

Who pays the co-op flip tax, the buyer or the seller?

In most NYC co-ops the seller pays. Some buildings shift the obligation to the buyer, and in a negotiation a buyer sometimes offers to cover it. Check the proprietary lease for your specific building; there is no citywide rule.

How much is a typical NYC co-op flip tax?

Where a building charges one, it is most commonly 1% to 3% of the sale price, though some buildings charge more, use a flat dollar amount, or charge a set amount per share. There is no citywide or statewide rate, and not every co-op charges a flip tax at all.

Do condos in NYC have a flip tax?

Rarely. Flip taxes are a co-op convention because co-op boards can attach conditions to a share transfer. Condo owners hold real property directly, so a condo association charging a transfer fee is uncommon, though it does happen occasionally. Check the condo declaration and bylaws before assuming either way.

Where do I find my building's exact flip tax rate?

The proprietary lease, the house rules, or the offering plan amendments on file with the managing agent. Your agent or attorney can request the exact language before you price the sale. Never rely on a neighbor's recollection or an old listing description.

Is the flip tax the same as the NYC transfer tax or the mansion tax?

No. The flip tax is a private building fee. The NYC and NY State transfer taxes are government taxes paid by the seller on every sale. The mansion tax is a New York State tax paid by the buyer on purchases of $1,000,000 or more. All three can apply to the same co-op sale, and each is calculated separately.

Once you know your flip tax exposure, add in the government-side transfer taxes with the NYC Transfer Tax Calculator, and if you are a buyer crossing the $1M line, check the NYC Mansion Tax Calculator. For the complete seller math, including commission and attorney fees, use the Seller Net Proceeds Calculator.