NYC Mansion Tax Explained — 2026
If you're buying a home in New York City for $1 million or more, you owe mansion tax. It's a buyer-side tax — separate from transfer tax (which the seller typically pays) — and it has been tiered since 2019. Here's how it works in 2026, how much it actually costs, and the strategies buyers use when their purchase price is right near the $1M threshold.
What the Mansion Tax Is
The "mansion tax" is the common name for New York State's additional real estate transfer tax on residential property purchases of $1 million or more [1]. In New York City, an additional NYC-specific mansion tax is layered on top of the state base rate, making NYC mansion tax tiered and progressive.
2026 Mansion Tax Rates (NYC Residential)
| Purchase Price | Combined Mansion Tax Rate |
|---|---|
| Under $1,000,000 | 0% (no mansion tax) |
| $1,000,000 – $1,999,999 | 1.00% |
| $2,000,000 – $2,999,999 | 1.25% |
| $3,000,000 – $4,999,999 | 1.50% |
| $5,000,000 – $9,999,999 | 2.25% |
| $10,000,000 – $14,999,999 | 3.25% |
| $15,000,000 – $19,999,999 | 3.50% |
| $20,000,000 – $24,999,999 | 3.75% |
| $25,000,000+ | 3.90% |
Rates apply to the entire purchase price, not just the amount above the threshold — that's why $1,000,000 vs. $999,999 is such a significant cliff [1].
Who Pays It
The buyer pays mansion tax at closing. It's filed with NYS Form TP-584 and the NYC RPTT return, through your attorney and title company.
Examples — Real Dollars
- $999,000 purchase in Howard Beach: $0 mansion tax
- $1,000,000 purchase in Howard Beach: $10,000 mansion tax
- $1,250,000 purchase in Forest Hills: $12,500 mansion tax
- $2,100,000 purchase in LIC condo: $26,250 mansion tax (1.25% tier)
- $3,500,000 purchase in Manhattan: $52,500 mansion tax (1.50% tier)
The $999K Strategy
Because mansion tax applies to the entire price once you cross $1M, there's a meaningful savings by staying just under. Common approaches:
- Price negotiation. If a home is listed at $1,050,000 and it's an aged listing, a $999,000 offer is often accepted — saving the buyer $10,000 in mansion tax plus an additional small sum in mortgage recording tax
- Furniture allocation. The real estate portion can be priced at $999,000 with separately-negotiated personal property (appliances, fixtures, etc.) — your attorney must structure this properly; aggressive allocation can trigger audit
- Concessions vs. price. A seller crediting closing costs at $999,000 is sometimes better for the buyer than a $1,020,000 price with no concession
None of these are DIY moves. They're coordinated through the attorney and lender.
Long Island (Nassau/Suffolk) Mansion Tax
The 1% NY State mansion tax applies statewide at $1M+. The additional NYC-only mansion tax tiers do not apply outside NYC [1]. On Long Island, a $1,500,000 purchase generates $15,000 in mansion tax — not the higher tiered NYC amount.
What's Excluded
- Commercial property (different transfer tax regime)
- Pure land purchases in most cases
- Gifts and certain inheritances (not a purchase)
- Transfers under $1M
Purchase Near $1M? Let's Structure It Right.
Nitin Gadura · (917) 705-0132
I work the $1M boundary weekly in Howard Beach, Forest Hills, and Bayside. Free 15-min consult.
Related Reading
- NYS Department of Taxation & Finance — Real Estate Transfer Tax / Mansion Tax: tax.ny.gov
- NYC Department of Finance — Real Property Transfer Tax: nyc.gov
- NYS Form TP-584: tax.ny.gov
Rates and filing rules change. Verify with your attorney, CPA, and current NYS/NYC tax publications. Informational only; not legal or tax advice.