Hamptons 2% Peconic Bay Community Preservation Fund (CPF) Transfer Tax & Mansion Tax Guide (2026): Southampton & East Hampton
Calculate 2026 Hamptons buyer closing costs: the 2.0% Peconic Bay Community Preservation Fund (CPF) transfer tax, $400k exemptions, 1% NYS Mansion Tax & town property taxes.
By Pablo Cirre Gómez and East Corp Capital Quantitative Desk
When acquiring a home on the East End of Long Island— across the five Peconic Bay towns of Southampton, East Hampton, Shelter Island, Southold, and Riverhead—buyers face a unique statutory closing cost that does not exist in Manhattan, Westchester, or Nassau County: the 2.00% Peconic Bay Region Community Preservation Fund (CPF) Transfer Tax under New York Town Law § 64-e. Combined with the 1.00% New York State Mansion Tax on purchases of $1,000,000 or more, Hamptons buyers pay a 3.00% upfront statutory buyer transfer tax at the closing table—yet enjoy some of the lowest annual property tax rates (0.42% to 0.68%) in the Northeast.
NYC Mansion Tax, Mortgage Recording Tax & Buyer Closing Cost Calculator
Models the 8-tier progressive NYC Mansion Tax (1.00% to 3.90%), NYC/NYS Mortgage Recording Tax (1.80%–1.925% on Condos, $0 on Co-ops), and sponsor transfer taxes.
How the 2.0% Peconic Bay CPF Tax & the $2,000,000 Exemption Cliff Work
Enacted to preserve East End farmland, open space, and water quality across Suffolk County’s five easternmost towns, the 2.00% CPF tax is paid by the buyer within 30 days of closing. For improved residential properties (homes with a house already built), the statute provides a town-specific dollar exemption that phases out completely at a hard $2,000,000 purchase price cliff:
- Purchases Under $2,000,000 in Southampton, East Hampton & Shelter Island: The first $400,000 of the purchase price is exempt from the 2.0% CPF tax (saving $8,000). On a $1,650,000 home, you pay 2.0% on $1,250,000 = $25,000.
- Purchases Under $2,000,000 in Southold & Riverhead (North Fork): The first $200,000 is exempt (saving $4,000).
- Purchases of $2,000,000 or More (All Five Towns): The $400,000/$200,000 exemption drops to $0.00. At $2,000,000, the 2.0% CPF applies from dollar one ($40,000 CPF + $20,000 NYS Mansion Tax = $60,000).
2026 Town-by-Town & Jurisdiction Benchmark Table
| Municipality / Jurisdiction | 2026 Rate / Ratio | Effective Tax / Cost | Key Statutory & Commuter Note |
|---|---|---|---|
| Southampton (Bridgehampton / Water Mill / Sagaponack) | 2.00% Buyer CPF | $400,000 Exemption (<$2,000,000 Price) | ~0.45% – 0.68% Effective Property Tax |
| East Hampton (Amagansett / Montauk / Wainscott) | 2.00% Buyer CPF | $400,000 Exemption (<$2,000,000 Price) | ~0.42% – 0.65% Effective Property Tax |
| Shelter Island | 2.00% Buyer CPF | $400,000 Exemption (<$2,000,000 Price) | ~0.55% – 0.75% Effective Property Tax |
| Southold & Riverhead (North Fork) | 2.00% Buyer CPF | $200,000 Exemption (<$2,000,000 Price) | ~0.85% – 1.25% Effective Property Tax |
Why Hamptons Annual Property Taxes (0.42%–0.68%) Are 75% Lower Than Western Long Island
Here is the silver lining that offsets the 2.0% CPF closing cost: while Nassau County and western Suffolk towns carry effective property tax rates above 2.15%, Southampton and East Hampton maintain effective property tax rates between 0.42% and 0.68%. Because oceanfront and south-of-the-highway estates contribute massive assessed value while placing very few children into the local school districts (such as Sagaponack, Wainscott, Bridgehampton, and Amagansett), a $2,500,000 home in Southampton or East Hampton often carries an annual property tax bill of just $11,500 to $15,500 per year—less than half the annual tax on a $900,000 house in Nassau County.
Frequently Asked Questions & Statutory Rules (2026)
Does NYC’s higher Mansion Tax schedule (1.25% to 3.90% above $2M) apply in the Hamptons?
No! In Southampton and East Hampton, the New York State Mansion Tax remains a flat 1.00% regardless of whether the home costs $1.5 million or $25 million. However, adding the 2.00% Peconic Bay CPF tax brings the combined buyer transfer tax to 3.00% on all Hamptons purchases ≥$2,000,000.
Do vacant land purchases in Southampton or East Hampton get the $400,000 CPF exemption?
No, with lower caps. Under Town Law § 64-e, unimproved vacant land purchases receive only a $100,000 exemption in Southampton, East Hampton, and Shelter Island ($75,000 in Southold and Riverhead), and receive $0 exemption once the land price reaches $1,000,000.
Is there a First-Time Homebuyer Exemption from the 2.0% Peconic Bay CPF tax?
Yes. First-time homebuyers purchasing an improved primary residence in Southampton, East Hampton, Shelter Island, Southold, or Riverhead whose household income and purchase price fall below the town’s SONYMA/median threshold (up to 150% of the SONYMA purchase price limit) can apply for a 100% CPF exemption.
What is the Mortgage Recording Tax rate in the Hamptons (Suffolk County)?
In Suffolk County, the total Mortgage Recording Tax is 1.05%, of which the lender pays 0.25%—leaving the buyer with a 0.80% Mortgage Recording Tax on the loan amount (less than half of NYC’s 1.925% rate).