1% at $1M, 3.9% above $25M, and every bracket in between. A $2M condo means a $25,000 check at closing. Here is the full table and how buyers reduce the bill.
The NYC mansion tax runs from 1% at a $1,000,000 contract price to 3.90% at $25,000,000, paid by the buyer on the whole price at closing. A buyer closing on a $2 million Manhattan condo writes a $25,000 check, on top of every other cost. The median Manhattan closing price was $1,333,000 over the 90 days to October 1, 2026 (RLS/REBNY via Trestle), above the $1,000,000 line where the tax starts, so the tax now reaches ordinary condos and co-ops, not just penthouses. In my 25+ years closing deals across all five boroughs, I have watched buyers lose bidding wars because they could not cover the mansion tax at closing.
The mansion tax is a one-time charge at closing. If the home will not be your primary residence, New York City's pied-à-terre tax adds a yearly surcharge on top, starting July 1, 2026. A non-resident buyer of a high-value home can owe both.
The tax has been part of New York law since 1989. The two numbers most buyers need are where it starts, 1% at a $1,000,000 contract price, and what it costs at their own number. The NYC mansion tax calculator gives the exact figure. Budget it alongside other NYC closing costs, your mortgage pre-approval amount, and any flip tax if you are buying a co-op.
The mansion tax is a state tax on residential sales in New York City at $1 million or more, introduced in 1989. The rate steps up by price tier:
| Sale Price Range | Mansion Tax Rate |
|---|---|
| $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 and above | 3.90% |
The rate applies to the total sale price, not just the amount above the threshold: a $3 million purchase owes $45,000 (1.50%).
The buyer pays the mansion tax. Unlike the NYC transfer tax (which is the seller's responsibility), the mansion tax is a buyer-side cost collected at closing. This is non-negotiable under New York Tax Law Section 1402-a. The tax is due at the time of recording the deed, and your attorney will collect it as part of your closing funds.
The mansion tax sits on top of your down payment, attorney fees, title insurance, and mortgage recording tax. For a $1.5 million purchase it is $15,000 by itself.
The tax applies to most residential transfers at $1 million or more, and the sale of co-op shares is not exempt:
Budget for the mansion tax (1%-3.9%) when evaluating these properties
206 E 95TH Street #16A
Yorkville
50 PINE Street #PH12S
Financial District
Listing information provided courtesy of the Real Estate Board of New York's Residential Listing Service (RLS). Information is deemed reliable but not guaranteed. Sale listings verified. ©2026 REBNY. RLS data displayed by Keller Williams NYC.
The rate applies to the whole price, so the figure on the card is the full check the buyer writes at closing.
Buyer-paid, once, at closing, on NY Tax Law Section 1402-a rates. Informational only, not legal or tax advice.
For the printable bracket schedule and the side-by-side cliff comparison, open the full NYC mansion tax calculator.
| Purchase Price | Rate | Mansion Tax Due |
|---|---|---|
| $1,000,000 | 1.00% | $10,000 |
| $1,333,000 (Manhattan median closing, 90 days) | 1.00% | $13,330 |
| $1,500,000 | 1.00% | $15,000 |
| $1,999,999 | 1.00% | $20,000 |
| $2,000,000 | 1.25% | $25,000 |
| $3,000,000 | 1.50% | $45,000 |
| $5,000,000 | 2.25% | $112,500 |
| $10,000,000 | 3.25% | $325,000 |
| $15,000,000 | 3.50% | $525,000 |
| $20,000,000 | 3.75% | $750,000 |
| $25,000,000 | 3.90% | $975,000 |
| $30,000,000 | 3.90% | $1,170,000 |
Because the rate applies to the entire price, a $1,999,999 contract owes $20,000 while a $2,000,000 contract owes $25,000, so one dollar of price costs $5,000 in tax. Crossing $5 million adds roughly $37,500 for that single dollar, and crossing $10 million adds roughly $100,000. At $999,999 there is no mansion tax at all. The mansion tax calculator shows what landing one bracket lower would save.
Three government taxes sit on the same contract price: the buyer's mansion tax, the NYC Real Property Transfer Tax (RPTT), and the New York State transfer tax. At a resale the seller pays both transfer taxes by custom; in a sponsor new development sale the buyer customarily pays them.
| Price | Mansion Tax (buyer) | NYC RPTT (seller at resale) | NYS Transfer Tax (seller at resale) | Total Transfer Taxes | All Three Combined |
|---|---|---|---|---|---|
| $1,000,000 | $10,000 | $14,250 | $4,000 | $18,250 | $28,250 |
| $2,000,000 | $25,000 | $28,500 | $8,000 | $36,500 | $61,500 |
| $3,000,000 | $45,000 | $42,750 | $19,500 | $62,250 | $107,250 |
| $5,000,000 | $112,500 | $71,250 | $32,500 | $103,750 | $216,250 |
| $10,000,000 | $325,000 | $142,500 | $65,000 | $207,500 | $532,500 |
| $25,000,000 | $975,000 | $356,250 | $162,500 | $518,750 | $1,493,750 |
How each cell is calculated: the mansion tax is the price times its bracket rate from the schedule above (1.00% at $1M, 1.25% at $2M, 1.50% at $3M, 2.25% at $5M, 3.25% at $10M, 3.90% at $25M). The NYC RPTT is 1.425% of the price on a residential sale over $500,000. The New York State transfer tax is 0.4% of the price, rising to 0.65% on a residential sale of $3,000,000 or more. At $5,000,000, for example, that is $112,500 (2.25%) plus $71,250 (1.425%) plus $32,500 (0.65%), or $216,250. Rates are from the bracket table on this page and from the NYC transfer tax guide. In a sponsor sale where the buyer pays the transfer taxes, those payments are added to the taxable consideration, so the mansion tax can come out higher than the column shows.
These are established negotiation and contract-structuring approaches, and every one should run through your real estate attorney before you sign.
The cleanest path. On a unit asking $2,025,000, a negotiated price of $1,999,999 saves the buyer $25,001 in price plus another $5,312 in tax, because the rate drops from 1.25% on the whole amount to 1.00%. This works best on listings that have sat on the market; in a bidding war, a seller has no reason to give up the threshold.
The mansion tax is calculated on the real property consideration. If the apartment comes with furniture or art that is genuinely personal property, your attorney can paper a separate bill of sale. A $2,030,000 deal with $35,000 of legitimately valued furnishings can close as a $1,995,000 real estate contract plus a separate personal property agreement, dropping the rate from 1.25% to 1.00%. Two warnings: the values must be real and documented, because the New York State Department of Taxation and Finance can challenge allocations that exist only to slip under a bracket, and sales tax can apply to the personal property side. This is attorney work, not a handshake.
Buyers of sponsor units in new developments customarily pay the sponsor's NYC and NYS transfer taxes. On the transfer tax return (Form TP-584), those payments are added to your taxable consideration, and that higher grossed-up number is what the mansion tax brackets test against. A unit priced at $1,970,000 can cross the $2 million line once roughly $36,000 of sponsor transfer taxes are added on. A sponsor that agrees to pay its own transfer taxes as a concession cuts your cost twice: the transfer taxes themselves, and potentially a full mansion tax bracket.
A seller credit toward your closing costs leaves the contract price unchanged, so the mansion tax is unchanged too. A price reduction lowers the number the tax is calculated on. If a seller offers to simply pay your mansion tax for you, be careful: New York generally treats that payment as additional taxable consideration, which raises the very tax being paid. Have your attorney run both structures before anyone signs.
The mansion tax is reported on Form TP-584 at closing, and the state reviews how consideration is allocated. Confirm any strategy with your real estate attorney and CPA before relying on it. Dollar figures above use the NY Tax Law Section 1402-a rate schedule in effect for 2026.
Yes. The mansion tax applies to a residential transfer of $1,000,000 or more, and that includes the sale of co-op shares as well as condos and one to three family houses. There is no co-op exemption, so a co-op buyer at $2,000,000 owes 1.25%, or $25,000, the same as a condo buyer. Because a co-op sale is a transfer of shares, have your attorney confirm the consideration figure before closing.
On a $5,000,000 Manhattan resale, the three government taxes alone come to $216,250: the buyer's $112,500 mansion tax (2.25%), plus the seller's $71,250 NYC RPTT (1.425%) and $32,500 New York State transfer tax (0.65%). The buyer also pays attorney fees and, on a financed condo, title insurance and mortgage recording tax. In a sponsor new development sale, the buyer usually picks up the transfer taxes as well.
The bracket cliffs decide the last $5,000 of a negotiation. I price both sides of that line for a living.
If you are shopping near one of these bracket lines, call or text me at (917) 416-7433 or email milton@miltoncoste.com, and I will run the tax on every property on your shortlist before you make an offer.
Listings sourced live from REBNY RLS and OneKey MLS. All listings verified active at time of viewing. Updated daily.
View Active Listings Get Custom SearchThis information is not verified for authenticity or accuracy and is not guaranteed. ©2026 The Real Estate Board of New York, Inc. All rights reserved. Listing data sourced from REBNY RLS and OneKey MLS. Listing Courtesy of Keller Williams NYC.
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License No. 10301213304 · 360 Madison Avenue, 9th Floor, NY 10017
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MLS & Listing Data Disclaimer: This information is not verified for authenticity or accuracy and is not guaranteed and may not reflect all real estate activity in the market. ©2026 The Real Estate Board of New York, Inc. All rights reserved. Listing information is provided solely for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Listing data sourced from REBNY RLS and OneKey MLS. Listing Courtesy of Keller Williams NYC.
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Content published: February 2026 · Milton Coste · Keller Williams NYC · License No. 10301213304
Primary sources for the figures on this page, verified August 21, 2026.
Budget for the mansion tax (1%-3.9%) when evaluating these properties
414 3RD Street #3R/4R
Park Slope
211 CENTRAL Park W #1K
Upper West Side
330 E 70TH Street #4E
Lenox Hill
Listing information provided courtesy of the Real Estate Board of New York's Residential Listing Service (RLS). Information is deemed reliable but not guaranteed. Sale listings verified. ©2026 REBNY. RLS data displayed by Keller Williams NYC.
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Licensed Real Estate Associate Broker · Keller Williams NYC
License No. 10301213304 · 360 Madison Avenue, 9th Floor, New York, NY 10017
