A flip tax is a fee a New York co-op charges when an apartment sells. It goes to the building, usually into its reserve fund, not to the city or state. Most are 1% to 3% of the sale price, the seller usually pays it, and who pays can sometimes be negotiated. Not every building has one, so check before you make an offer.
The text that started this post
I got a text recently from a Tampa client. Five words.
"What's a 2% flip tax?"
She's been browsing Manhattan apartments for a while. No rush. She's planning to buy in the next couple of years, and she's doing exactly what a smart buyer does that far out. Looking, learning, and asking questions before money is on the line.
Here's what I told her. It's a fee the building charges when an owner sells, and it goes into the reserves. Not every building has one. If they do, it could be any amount. The seller usually absorbs it, but in some buildings the buyer pays it. And it can be negotiated.
That's the short answer. But if you're coming from Tampa, there's a little more you should know, because nothing like this really exists here.
What is a flip tax in New York?
A flip tax is a transfer fee a co-op building collects when an apartment changes hands. Despite the name, it's not a government tax. The money goes to the building, usually into the reserve fund that pays for things like a new roof, elevator work, or a boiler.
The name goes back decades. When rental buildings converted to co-ops, early buyers got their apartments cheap and could "flip" them for a quick profit. Buildings started charging a fee on those sales, and it stuck.
Because it isn't a real tax, you can't deduct it like property tax. Ask your CPA how it affects your numbers when you sell.
How much is a flip tax in NYC?
Most flip taxes run 1% to 3% of the sale price. Some buildings charge more, some charge a flat fee, and some don't charge one at all. There's no citywide rate. Each co-op sets its own.
The "2%" in my client's text is the most common structure, a percentage of the sale price. Here's how the different versions work:
How it's calculated | Example | Fee on a $1.2M sale |
|---|---|---|
Percentage of sale price (most common) | 2% of the price | $24,000 |
Dollar amount per share | $50 x 400 shares | $20,000 |
Flat fee | One set amount | $10,000 |
Percentage of profit | 15% of a $200K gain | $30,000 |
Some buildings use a sliding scale, where the fee drops the longer you've owned. Others combine methods, like a flat fee plus a per-share charge.
Who pays the flip tax, the buyer or the seller?
The seller usually pays it, and it comes out of their proceeds at closing. But some buildings, often on the Upper East Side, require the buyer to pay. The contract spells out who's responsible.
If you're the buyer in a building like that, add it to your closing costs. On a $1.2 million purchase, a 2% buyer-paid flip tax is another $24,000 on top of the mansion tax and everything else.
Can you negotiate a flip tax?
You can't negotiate the amount. The building sets it. What you can sometimes negotiate is who pays it.
That depends on leverage. If an apartment has been sitting, a seller may agree to cover a buyer-paid flip tax to get the deal done. If there are multiple offers, a buyer might offer to pick up the seller's flip tax to win. Either way, it's part of the price conversation, not separate from it.
This is also why I tell buyers to look at the flip tax as a selling cost they'll face someday, too. If you buy in a 3% building, you'll likely pay 3% on the way out.
Do NYC condos have a flip tax?
Rarely. Flip taxes are mostly a co-op thing. Most Manhattan condos don't have one.
What condos often have instead is a capital contribution, sometimes called a working capital contribution. The buyer pays it at closing, usually one or two months of common charges. You'll see it at almost every new development.
Is a flip tax a bad thing?
Not necessarily. A flip tax is one of the ways a co-op keeps its reserves healthy. A building that collects one every time an apartment sells may be less likely to hit owners with big special assessments.
I'd worry more about a building with weak reserves than one with a reasonable flip tax. The flip tax is a cost you can see and plan for. A surprise assessment is not.
Is there a flip tax in Tampa or Florida?
Not really. You won't hear "flip tax" in South Tampa. Most of what buyers here purchase is a single-family home, a condo, or a townhome, and co-ops are rare.
The closest thing in Florida is a capital contribution or transfer fee some associations charge at closing. When you buy a Florida condo, the association's estoppel certificate has to disclose whether a capital contribution, resale, or transfer fee is due. So the answer is always on paper. You just have to read it.
How do you find out if a building has a flip tax?
Check the listing first, then confirm it in the building's documents. The flip tax is written into the co-op's proprietary lease or bylaws, and it's often listed in the sale application package.
Your attorney should confirm it during due diligence, along with whether the building is considering raising it. Co-ops can increase a flip tax with a shareholder vote, so it's worth asking what's been discussed in recent board minutes.
The real lesson for Tampa buyers
The flip tax isn't the hard part. It's a number, and once you know it, you can plan around it.
The hard part is that buying in Manhattan runs on different rules. Co-op boards. Share counts. Fees with names that sound like taxes but aren't. A buyer who's spent their whole life buying in Florida can walk into a 2% flip tax, a board package, and a financing limit all in the same week.
That's why I liked this text so much. She asked two years early. That's exactly when you want to be asking.
If you're in Tampa and thinking about a place in New York someday, what's the question you haven't asked yet?
The flip tax is just one of them.
Mansion tax, co-op board rules, and New York's new pied-Ã -terre tax. Here's what a Tampa buyer actually pays in Manhattan, side by side.
See What Manhattan Really Costs
For the full breakdown of every cost, read What Does It Cost to Buy in Manhattan? NYC Closing Costs for Tampa Buyers.
Flip tax FAQs
What is a flip tax?
A flip tax is a fee a New York co-op charges when an apartment sells. It goes to the building, usually into its reserve fund, and it isn't a government tax.
How much is a typical flip tax in NYC?
Most NYC flip taxes are 1% to 3% of the sale price. Some buildings use a flat fee, a per-share amount, or a percentage of the seller's profit instead.
Who pays a 2% flip tax?
The seller usually pays it at closing. Some co-ops require the buyer to pay, and the purchase contract states who is responsible.
Is a flip tax negotiable?
The amount is set by the building and isn't negotiable. Who pays it can sometimes be negotiated between buyer and seller as part of the deal.
Do Florida condos have flip taxes?
Florida doesn't use flip taxes the way New York co-ops do. Some Florida associations charge a capital contribution or transfer fee at closing, which is disclosed on the estoppel certificate.
About Kelly Burchill
Kelly Burchill is a Broker Associate at Compass, Florida and New York, and a third-generation South Tampa native. She specializes in South Tampa luxury real estate, off-market opportunities, and NYC-to-Tampa relocation. With more than a decade in real estate and a previous career in TV news, Kelly brings a journalist's instinct for research and storytelling to every transaction.
Compass, Tampa, FL · kellyburchill.com · 813.758.3292
Published November 2026. This post is general information, not legal or tax advice. Every building's flip tax policy is different, so confirm the details with your attorney and CPA before you buy or sell.
