August 28, 2025
Why this matters now
In Manhattan, taxes at closing can change budgets and timing. Understanding the NYC mansion tax and transfer taxes early helps you compare homes with confidence and avoid surprises at the table.
The mansion tax in NYC, at a glance
The mansion tax is paid by the buyer on residential purchases of 1 million dollars or more in New York. NYC uses a graduated schedule that rises with price. Current brackets:
1.00% on 1,000,000 to 1,999,999
1.25% on 2,000,000 to 2,999,999
1.50% on 3,000,000 to 4,999,999
2.25% on 5,000,000 to 9,999,999
3.25% on 10,000,000 to 14,999,999
3.50% on 15,000,000 to 19,999,999
3.75% on 20,000,000 to 24,999,999
3.90% on 25,000,000 and above.
What counts as residential: a one to three family house, a condo unit, or a co-op used as a residence. The tax is calculated on the purchase price shown on the deed or transfer documents.
Transfer taxes in NYC, at a glance
Transfer taxes are usually paid by the seller at closing. There are two layers in the city.
New York City Real Property Transfer Tax (RPTT)
For residential one to three family homes, condos, and co-ops:
1.00% if the price is 500,000 or less
1.425% if the price is over 500,000.
New York State Transfer Tax
For residential one to three family homes, condos, and co-ops:
0.40% in general
0.65% if the sale price is 3,000,000 or more for residential property.
Note: Co-ops are considered a transfer of an interest, but both taxes still apply based on the price. Rates differ for commercial or large multi-family; this guide focuses on standard residential.
Five smart questions to ask early
- Who pays what on this deal and is anyone asking for a credit to offset taxes
- Is the price near a bracket jump where one dollar changes the rate
- Are there other building fees at closing such as co-op flip tax or condo working capital
- Will financing points or concessions affect net cash compared to a clean price
- How will this impact resale if market values shift near a bracket edge
Tips for international buyers
Wire timelines, affidavit requirements, and FIRPTA for sellers can affect scheduling. Set tax and document expectations with your attorney and lender at the term sheet stage, not after contract. The NYC mansion tax and transfer taxes are separate from your annual property taxes.
how we can help
Many homes sit close to mansion tax thresholds. A small price change can shift the rate. Running clear numbers early keeps negotiations focused and calm and you can count on us to help you through the process.
