How NY Mansion Tax Works
The New York State mansion tax applies to residential real estate purchases at $1 million or more. The buyer (not the seller) pays this tax at closing. Rates increase with price, and EACH tier applies only to the portion of the price within that tier — but for residential purchases, the entire price is taxed at the rate of its highest tier.
2026 Mansion Tax Tiers
| Purchase Price | Tax Rate | Tax on $1M / $5M / $10M |
|---|---|---|
| Under $1,000,000 | 0% | $0 |
| $1,000,000 – $1,999,999 | 1.00% | $10,000 (on $1M) |
| $2,000,000 – $2,999,999 | 1.25% | — |
| $3,000,000 – $4,999,999 | 1.50% | — |
| $5,000,000 – $9,999,999 | 2.25% | $112,500 (on $5M) |
| $10,000,000 – $14,999,999 | 3.25% | $325,000 (on $10M) |
| $15,000,000 – $19,999,999 | 3.50% | — |
| $20,000,000 – $24,999,999 | 3.75% | — |
| $25,000,000 + | 3.90% | — |
Important Notes
This tax is in addition to the standard NY State transfer tax (0.4%) and any NYC RPTT (1–1.425%). For NYC purchases, all three apply at closing.
The mansion tax cannot be financed into a mortgage — it must be paid in cash at closing. Plan for this in your cash budget if buying a $1M+ property.