By the NYC Paycheck Calculators Editorial Team | Last Updated: November 14, 2026
Buying a home in New York City? A purchase price of $1 million or more can trigger the NYC Mansion Tax, adding thousands of dollars to your closing costs. Learn the 2026 tax rates, exact calculations, and who pays before buying.
What Is the NYC Mansion Tax?
The NYC Mansion Tax is an additional tax on qualifying residential property purchases in New York. New York State imposes a 1% tax on qualifying residential purchases of $1 million or more. New York City also has a supplemental Mansion Tax for qualifying residential purchases of $2 million or more.
The combined rate increases with the purchase price and reaches 3.9% for residential properties priced at $25 million or more.
Despite its name, the tax does not apply only to luxury mansions. It can also apply to qualifying condominiums, cooperative apartments, and residential houses.
According to the New York State Department of Taxation and Finance, the basic Mansion Tax and NYC supplemental tax are separate components of New York’s real estate transfer tax system.
NYC Mansion Tax Rates and Thresholds for 2026
The applicable Mansion Tax rate depends on the total taxable consideration for the residential property transfer.
The following table shows the combined New York State Mansion Tax and NYC supplemental Mansion Tax rates.
| Residential Purchase Price | NYS Mansion Tax | NYC Supplemental Tax | Combined Rate |
|---|---|---|---|
| Under $1,000,000 | 0% | 0% | 0% |
| $1M–$1,999,999 | 1.00% | 0% | 1.00% |
| $2M–$2,999,999 | 1.00% | 0.25% | 1.25% |
| $3M–$4,999,999 | 1.00% | 0.50% | 1.50% |
| $5M–$9,999,999 | 1.00% | 1.25% | 2.25% |
| $10M–$14,999,999 | 1.00% | 2.25% | 3.25% |
| $15M–$19,999,999 | 1.00% | 2.50% | 3.50% |
| $20M–$24,999,999 | 1.00% | 2.75% | 3.75% |
| $25M or more | 1.00% | 2.90% | 3.90% |
Important: These are combined buyer-side Mansion Tax rates. They do not include the separate seller-paid transfer taxes.
The NYC supplemental Mansion Tax begins at $2 million and increases according to the applicable price tier. You can review the official rate schedule in the New York State instructions for Form TP-584-NYC.
How to Calculate NYC Mansion Tax
Calculating the Mansion Tax requires two things: the taxable purchase consideration and the applicable combined tax rate.
Use this formula:
Mansion Tax = Taxable Purchase Consideration × Applicable Tax Rate
Here are six practical examples.
Example 1: Buying a $1.5 Million NYC Apartment
Suppose you purchase a qualifying residential apartment for $1,500,000.
- Purchase price: $1,500,000
- NYS Mansion Tax: 1%
- NYC supplemental tax: 0%
- Combined rate: 1%
Calculation:
$1,500,000 × 0.01 = $15,000
Estimated Mansion Tax: $15,000
Example 2: Buying a $2.5 Million NYC Condo
Suppose your purchase price is $2,500,000.
- Purchase price: $2,500,000
- NYS Mansion Tax: 1%
- NYC supplemental tax: 0.25%
- Combined rate: 1.25%
Calculation:
$2,500,000 × 0.0125 = $31,250
Estimated Mansion Tax: $31,250
Example 3: Buying a $4 Million NYC Home
For a qualifying residential purchase of $4 million:
- Purchase price: $4,000,000
- Combined tax rate: 1.50%
Calculation:
$4,000,000 × 0.015 = $60,000
Estimated Mansion Tax: $60,000
Example 4: Buying a $7 Million NYC Property
For a $7 million residential property:
- Purchase price: $7,000,000
- Combined tax rate: 2.25%
Calculation:
$7,000,000 × 0.0225 = $157,500
Estimated Mansion Tax: $157,500
Example 5: Buying a $12 Million NYC Property
For a qualifying $12 million residential purchase:
- Purchase price: $12,000,000
- Combined tax rate: 3.25%
Calculation:
$12,000,000 × 0.0325 = $390,000
Estimated Mansion Tax: $390,000
Example 6: Buying a $30 Million NYC Property
For a qualifying $30 million residential purchase:
- Purchase price: $30,000,000
- Combined tax rate: 3.90%
Calculation:
$30,000,000 × 0.039 = $1,170,000
Estimated Mansion Tax: $1,170,000
These calculations estimate the Mansion Tax only. They do not include other transfer taxes, mortgage recording taxes, or closing expenses.
Who Pays the Mansion Tax in NYC: Buyer or Seller?
The buyer is generally responsible for paying the Mansion Tax in New York City.
The tax is normally paid during the real estate closing process. It is included in the buyer’s closing cost calculations and reported through the applicable transfer tax filing.
However, New York State law also provides that if the buyer fails to pay the tax or is exempt, the seller may become responsible for payment.
According to the official New York State transfer tax guidance, the buyer is responsible for the Mansion Tax, while the seller generally pays the basic and additional base transfer taxes.
Buyers should ask their real estate attorney to confirm the exact amount due before closing.
Does the Seller Pay Any Real Estate Transfer Taxes?
Yes. Although the buyer generally pays the Mansion Tax, the seller is generally responsible for separate New York State and NYC transfer taxes.
These can include:
- New York State basic Real Estate Transfer Tax.
- NYC Real Property Transfer Tax.
- New York State Additional Base Tax on qualifying NYC residential transfers.
These taxes are separate from the Mansion Tax and should not be combined into one buyer-side tax rate.
Does the Mansion Tax Apply to Condos, Co-ops, and Houses?
Yes. The Mansion Tax can apply to several types of qualifying residential property, including condominiums, cooperative apartments, and one- to three-family houses.
1. Condominiums
A qualifying NYC condominium purchase of $1 million or more is generally subject to Mansion Tax.
For example, purchasing a condo for $2.2 million puts the transaction in the 1.25% combined tax tier.
Calculation:
$2,200,000 × 0.0125 = $27,500
Estimated Mansion Tax: $27,500
2. Co-op Apartments
Cooperative apartment purchases can also be subject to Mansion Tax.
A common misconception is that co-ops are automatically exempt because buyers purchase shares in a cooperative housing corporation rather than receiving a conventional deed to an individual apartment.
However, qualifying cooperative share transfers connected with a proprietary lease are covered by New York’s transfer tax rules.
The taxable consideration for a cooperative transaction can involve special rules. Certain underlying mortgage amounts and continuing lien deductions must be considered depending on the type of transfer.
3. Single-Family and Multi-Family Houses
Qualifying one-, two-, and three-family residential house purchases are also subject to Mansion Tax when the applicable purchase-price threshold is reached.
The property’s legal classification and taxable consideration determine the applicable tax treatment.
Mansion Tax vs. NYC Real Property Transfer Tax
The Mansion Tax and NYC Real Property Transfer Tax (RPTT) are two separate taxes.
The Mansion Tax is generally paid by the buyer, while the NYC RPTT is generally paid by the seller.
Here is how they differ:
| Tax | General Payment Responsibility | Main Rule |
|---|---|---|
| NYS Mansion Tax | Buyer | 1% on qualifying residential purchases of $1M or more |
| NYC Supplemental Mansion Tax | Buyer | Additional 0.25%–2.90% on qualifying NYC residential purchases of $2M or more |
| NYS Basic Transfer Tax | Seller | $2 per $500 or fraction thereof |
| NYC Real Property Transfer Tax | Seller | Generally 1% or 1.425% for residential Type 1 and Type 2 transfers |
| NYS Additional Base Tax | Seller | Additional 0.25% on qualifying NYC residential transfers of $3M or more |
The New York State Additional Base Tax deserves special attention. It is a separate seller-paid tax, not part of the buyer’s Mansion Tax.
The NYC Department of Finance RPTT guidance explains the city’s separate transfer tax rules.
Example: Different Taxes on a $3 Million NYC Home
Consider a qualifying $3 million residential property purchase.
Buyer’s Mansion Tax:
- NYS Mansion Tax: 1%
- NYC supplemental Mansion Tax: 0.50%
- Combined rate: 1.50%
Calculation:
$3,000,000 × 0.015 = $45,000
Estimated Buyer Mansion Tax: $45,000
Seller’s Transfer Taxes:
- NYS basic transfer tax: generally 0.4%.
- NYC residential RPTT: generally 1.425%.
- NYS Additional Base Tax: 0.25%.
These are separate seller-side taxes, subject to applicable transaction rules and exceptions.
The buyer’s $45,000 Mansion Tax should not be confused with the seller’s transfer tax obligations.
Does the Mansion Tax Apply Outside New York City?
Yes. The basic New York State Mansion Tax applies to qualifying residential purchases throughout New York State when taxable consideration reaches $1 million.
However, the NYC supplemental Mansion Tax applies only to qualifying residential property transfers located in New York City.
New York City’s five boroughs are:
- Manhattan
- Brooklyn
- Queens
- The Bronx
- Staten Island
For example, a qualifying $2 million residential purchase in NYC generally has a combined Mansion Tax rate of 1.25%.
A qualifying $2 million residential purchase elsewhere in New York State generally has only the basic 1% Mansion Tax.
Properties in New Jersey or Connecticut are not subject to the NYC Mansion Tax simply because the buyer lives in New York City.
If you are also comparing paycheck taxes between the two states, read our NYC vs. New Jersey Paycheck and Taxes Guide. That comparison covers income and paycheck taxes, not real estate transfer taxes.
Does the Down Payment or Mortgage Amount Affect Mansion Tax?
The Mansion Tax is not calculated simply on the buyer’s down payment or the amount borrowed through a new mortgage.
It is based on taxable consideration under New York State tax law.
For example, suppose you purchase a qualifying NYC condo for $2 million.
- Purchase price: $2,000,000
- Down payment: $500,000
- New mortgage: $1,500,000
- Applicable Mansion Tax rate: 1.25%
Estimated calculation:
$2,000,000 × 0.0125 = $25,000
Estimated Mansion Tax: $25,000
A larger down payment does not automatically reduce the tax.
Important: Taxable consideration can include certain mortgages, liens, assumed obligations, and other forms of value. Special continuing-lien deductions may also apply to qualifying residential transfers. The calculation is not always identical to the cash purchase price.
Why Mansion Tax Thresholds Matter
One of the most important details buyers should understand is that the Mansion Tax uses threshold-based rates rather than ordinary marginal tax brackets.
When a purchase enters a higher price tier, the new applicable rate generally applies to the entire taxable consideration.
Consider these examples:
| Purchase Price | Combined Rate | Mansion Tax |
|---|---|---|
| $999,999 | 0% | $0 |
| $1,000,000 | 1.00% | $10,000 |
| $1,999,999 | 1.00% | $19,999.99 |
| $2,000,000 | 1.25% | $25,000 |
| $2,999,999 | 1.25% | $37,499.99 |
| $3,000,000 | 1.50% | $45,000 |
| $5,000,000 | 2.25% | $112,500 |
| $10,000,000 | 3.25% | $325,000 |
| $25,000,000 | 3.90% | $975,000 |
For example, a $2,999,999 purchase has an estimated Mansion Tax of approximately $37,500.
At exactly $3 million, the rate changes from 1.25% to 1.50%, increasing the tax to $45,000.
That is an increase of approximately $7,500 for a $1 difference in purchase price.
This is why buyers should understand the tax thresholds before finalizing their purchase price.
What Is the NYC Pied-à-Terre Tax? Is It the Same as Mansion Tax?
No. The NYC Pied-à-Terre Tax, officially called the Non-Primary Residence Property Surcharge, is separate from the Mansion Tax.
The Mansion Tax is a one-time tax associated with a qualifying property purchase.
The Pied-à-Terre Tax is a separate annual surcharge on certain high-value NYC residential properties that are not used as their owners’ primary residences.
The surcharge took effect for the 2026–27 property tax year.
For the initial 2026–27 and 2027–28 tax years, it may apply to:
- One-, two-, and three-family homes with a city-determined market value of $5 million or more.
- Condominium and cooperative units with a city-determined market value of $1 million or more.
The initial surcharge rates vary by property type and value:
| Property Type | City-Determined Market Value | Initial Surcharge Rate |
|---|---|---|
| One- to three-family homes | $5M–under $15M | 0.80% |
| One- to three-family homes | $15M–under $25M | 1.05% |
| One- to three-family homes | $25M or more | 1.30% |
| Condos and co-ops | $1M–under $3M | 4.00% |
| Condos and co-ops | $3M–under $5M | 5.25% |
| Condos and co-ops | $5M or more | 6.50% |
These rates use the city’s applicable property valuation methodology, not simply the original purchase price.
Primary-residence exemptions may apply to qualifying owners, family members, or tenants.
This annual surcharge should not be confused with the one-time Mansion Tax paid during a qualifying property purchase.
How to Prepare for Mansion Tax at Closing
The Mansion Tax can represent a significant part of a buyer’s closing expenses.
A little preparation can help avoid unexpected costs.
1. Confirm the Taxable Purchase Price
Ask your real estate attorney to verify the taxable consideration used for the transfer tax calculation.
2. Identify the Correct Tax Rate
Check the applicable purchase-price tier and whether the NYC supplemental Mansion Tax applies.
3. Request a Complete Closing Cost Estimate
Ask for a breakdown that separates the Mansion Tax from state and city transfer taxes, mortgage recording taxes, attorney fees, and other closing expenses.
4. Review Your Purchase Agreement
Confirm the contractual responsibility for applicable transfer taxes and any special payment arrangements.
5. Verify the Tax Filing
Make sure the required New York State and NYC transfer tax returns are completed and the applicable taxes are paid.
For NYC property transfers, the relevant state filing is generally Form TP-584-NYC.
If you are planning your overall household budget, you can also use our calculator to estimate your take-home income separately from your real estate closing costs.
Try our free NYC paycheck calculator to estimate your take-home pay in seconds, then compare it with your pay stub.
Frequently Asked Questions About NYC Mansion Tax
Frequently Asked Questions About NYC Mansion Tax
What is the NYC Mansion Tax rate in 2026?Click this!
The combined Mansion Tax rate ranges from 1% to 3.9% for qualifying NYC residential purchases of $1 million or more. The applicable rate depends on the purchase-price tier.
Is there a Mansion Tax on a $900,000 NYC home?Click this!
Generally, no. The basic Mansion Tax starts at $1 million. However, separate real estate transfer taxes and closing expenses may still apply.
Who pays the Mansion Tax in NYC?Click this!
The buyer generally pays the Mansion Tax at closing. If the buyer fails to pay or is exempt, the seller may become responsible under the applicable law.
How much is the Mansion Tax on a $1 million NYC apartment?Click this!
The estimated Mansion Tax is $10,000.
Calculation:
$1,000,000 × 1% = $10,000.
Does the NYC Mansion Tax apply to co-ops?Click this!
Yes. Qualifying cooperative apartment share transfers can be subject to Mansion Tax. Special consideration and continuing-lien rules may apply.
Is the Mansion Tax based on the mortgage or purchase price?Click this!
It is based on taxable consideration under New York law. It is not simply calculated using the buyer’s down payment or new mortgage amount.
Is Mansion Tax deductible on federal income taxes?Click this!
Buyers should not assume the Mansion Tax is immediately deductible as a federal income tax expense. Its treatment can depend on the property, its use, and applicable federal tax rules. Consult a qualified tax professional.
Does New Jersey have the NYC Mansion Tax?Click this!
No. New Jersey has separate real estate transfer tax rules. A property located in New Jersey is not subject to the NYC Mansion Tax.
What is the highest NYC Mansion Tax rate?Click this!
The highest combined rate is 3.9%, applying to qualifying NYC residential purchases of $25 million or more.
When is the Mansion Tax paid?Click this!
It is generally paid during the property closing process, with the applicable tax return and payment handled under New York filing requirements.
Does the Mansion Tax apply to second homes?Click this!
Yes. A qualifying residential purchase can be subject to Mansion Tax regardless of whether it is the buyer’s primary residence, second home, or investment property.
A separate annual Non-Primary Residence Property Surcharge may also apply to certain qualifying properties.
Is the Mansion Tax the same as NYC transfer tax?Click this!
No. The Mansion Tax is generally paid by the buyer, while NYC Real Property Transfer Tax is generally paid by the seller. They are separate taxes with different rates and rules.
Final Thoughts
The NYC Mansion Tax can add thousands of dollars to a home purchase, especially when the price crosses a higher tax threshold. Understanding the rates, taxable consideration, and separate transfer taxes helps buyers prepare for closing costs with fewer surprises.
Before completing a purchase, confirm the applicable calculation with a New York real estate attorney and review the latest official tax guidance.
Disclaimer: This article is for educational and informational purposes only. It does not constitute legal, tax, or financial advice. Actual tax liability may depend on the property’s classification, transaction structure, taxable consideration, exemptions, and applicable laws. Consult a qualified New York real estate attorney or tax professional for advice about a specific transaction.