NYC mansion tax: rates, who pays, and how to calculate it
updated 2026-11-11
The NYC mansion tax is paid by the buyer on homes bought for $1 million or more: 1% of the full price, rising in steps from $2 million to 3.9% at $25 million.#
Last updated: 2026-11-11. General information, not legal, tax or financial advice. Rates and rules change, so confirm the numbers for your deal with your real estate attorney and lender.#
The short answer#
The mansion tax is two New York State taxes added together. The additional tax is 1% of the price on any residential purchase of $1 million or more, anywhere in the state. In New York City, a supplemental tax adds 0.25% to 2.9% from $2 million up. Both apply to the whole price, not just the part above the threshold, and both are paid by the buyer at closing. The NYC supplemental rates have applied since July 1, 2019.#
| Price | State tax | NYC supplemental | Combined rate |
|---|---|---|---|
| Under $1,000,000# | 0% | 0% | 0% |
| $1,000,000 – $1,999,999# | 1% | 0% | 1.00% |
| $2,000,000 – $2,999,999# | 1% | 0.25% | 1.25% |
| $3,000,000 – $4,999,999# | 1% | 0.50% | 1.50% |
| $5,000,000 – $9,999,999# | 1% | 1.25% | 2.25% |
| $10,000,000 – $14,999,999# | 1% | 2.25% | 3.25% |
| $15,000,000 – $19,999,999# | 1% | 2.50% | 3.50% |
| $20,000,000 – $24,999,999# | 1% | 2.75% | 3.75% |
| $25,000,000 and above# | 1% | 2.90% | 3.90% |
What is the mansion tax in NYC?#
It is a tax on buying a home, not on owning one. It applies to one- to three-family houses, individual condo units and co-op apartments. A co-op buyer pays it on the price of the shares in the same way a condo buyer pays it on the price of the unit.#
The name is misleading: it applies to any home at $1 million or more, which in New York City includes many ordinary apartments. The threshold is a fixed dollar amount, not indexed to prices, so more buyers pass it as prices rise.#
The tax is reported on Form TP-584-NYC, which is filed and paid at closing. Your attorney or the title company prepares it; you bring the money.#
NYS mansion tax vs the NYC supplemental tax#
The 1% tax is the NYS mansion tax proper, and it applies across New York State. Outside New York City, a $3 million house owes 1% and nothing more.#
The supplemental tax applies only in New York City and only from $2 million up. It was added in 2019 together with a higher seller's transfer tax on NYC homes of $3 million or more (see the NYC transfer tax guide). Contracts signed on or before April 1, 2019 kept the old rules if the date could be proven.#
Who pays the mansion tax?#
The buyer. New York State law puts the additional tax and the supplemental tax on the grantee, meaning the buyer. If the buyer fails to pay, or is exempt, the seller becomes liable for it, so a seller's attorney will make sure it is paid at closing.#
You can negotiate with the seller over who bears any cost, but you cannot change who owes the tax to the state. In practice the buyer pays it on every ordinary sale.#
On a new-development condo, the sponsor usually also makes you pay the seller's transfer taxes. Under New York State rules, transfer tax a buyer pays for the seller on a residential sale is excluded from the amount subject to state tax, so it does not raise your mansion tax.#
Worked examples#
$750,000 co-op or condo. Below $1 million, so no mansion tax.#
$1,200,000 condo. $1,200,000 × 1% = $12,000.#
$2,500,000 condo. The combined rate from $2 million to $2,999,999 is 1.25%. $2,500,000 × 1.25% = $31,250. That is $25,000 of state tax plus $6,250 of NYC supplemental tax.#
$3,100,000 condo. The combined rate from $3 million to $4,999,999 is 1.5%. $3,100,000 × 1.5% = $46,500: $31,000 state plus $15,500 NYC supplemental.#
The thresholds are cliffs#
Because each rate applies to the whole price, crossing a threshold by one dollar raises the tax on every dollar:#
- $999,000 owes nothing; $1,000,000 owes $10,000.#
- $1,950,000 owes $19,500; $2,000,000 owes $25,000.#
- $2,995,000 owes $37,437.50; $3,000,000 owes $45,000.#
That is one reason asking prices cluster just under $1 million, $2 million and $3 million. When you compare two listings either side of a threshold, add the tax to the price. A $1,000,000 apartment costs you $10,000 more at closing than a $999,000 one, not $1,000 more.#
How to calculate it yourself: an NYC mansion tax calculator#
- Take the full contract price. For a co-op, that is the price of the shares.#
- If the price is below $1,000,000, the tax is $0. Stop.#
- Find the price's row in the table above and read the combined rate.#
- Multiply the full price by that rate. The result is the mansion tax you pay at closing.#
Pre-computed amounts at common NYC prices:#
| Price | Combined rate | Mansion tax |
|---|---|---|
| $750,000# | 0% | $0 |
| $999,000# | 0% | $0 |
| $1,000,000# | 1.00% | $10,000 |
| $1,200,000# | 1.00% | $12,000 |
| $1,500,000# | 1.00% | $15,000 |
| $1,950,000# | 1.00% | $19,500 |
| $2,000,000# | 1.25% | $25,000 |
| $2,500,000# | 1.25% | $31,250 |
| $3,000,000# | 1.50% | $45,000 |
| $3,100,000# | 1.50% | $46,500 |
| $5,000,000# | 2.25% | $112,500 |
How it fits into your closing costs#
From $1 million up, the mansion tax is usually the largest single closing cost on a co-op, because co-op buyers don't pay the mortgage recording tax. On a condo it sits beside the mortgage recording tax, title insurance and the attorney's fee. The NYC closing costs guide adds them up at $750,000, $1.2 million and $2.5 million, and the co-op vs condo guide explains why the two pay different taxes.#
The mansion tax is paid at closing, on top of the down payment. Budget for it before you bid: above $1 million it adds five figures to the cash you need.#
For the whole process from budget to keys, see buying an apartment in NYC.#