NYC Mansion Tax (2026): Rates, Who Pays It, and Real Examples
If you are buying a home in New York for $1,000,000 or more, you will owe the mansion tax: a one-time tax paid by the buyer at closing. Despite the name, it has nothing to do with mansions — in today's market, a two-bedroom condo in Brooklyn or Queens can easily cross the threshold.
The 2026 mansion tax rates in New York City
Since 2019, NYC uses a progressive schedule. The rate applies to the entire purchase price, not just the amount above each threshold:
| Purchase price | Rate | Tax on a purchase at the low end |
|---|---|---|
| Under $1,000,000 | 0% | $0 |
| $1M – $1,999,999 | 1.00% | $10,000 |
| $2M – $2,999,999 | 1.25% | $25,000 |
| $3M – $4,999,999 | 1.50% | $45,000 |
| $5M – $9,999,999 | 2.25% | $112,500 |
| $10M – $14,999,999 | 3.25% | $325,000 |
| $15M – $19,999,999 | 3.50% | $525,000 |
| $20M – $24,999,999 | 3.75% | $750,000 |
| $25M and up | 3.90% | $975,000 |
Outside New York City
In the rest of New York State, the original flat 1% mansion tax applies to purchases of $1M+ — common in Westchester, Nassau and the Hamptons. The progressive tiers above are NYC-only.
Who pays it — and one exception
The buyer pays, at closing, alongside other closing costs. One exception: if the contract shifts it to the buyer being exempt (rare, e.g., government entities) or the seller agrees to pay it as a negotiated concession — in that case the amount is treated as taxable consideration and slightly increases the tax itself.
Three real examples
- $975,000 condo in Queens: $0 mansion tax. Under the threshold.
- $1,200,000 co-op in Brooklyn: 1% × $1.2M = $12,000 due at closing.
- $2,400,000 townhouse in Manhattan: 1.25% × $2.4M = $30,000.
How to plan for it
The mansion tax is cash due at closing — it cannot be financed into your mortgage. Add it to your down payment, other closing costs (attorney, title insurance, mortgage recording tax) and reserves when calculating the cash you need. Our calculator includes both the mansion tax and the NYC mortgage recording tax automatically.
Get your range in 30 seconds, free, no signup. NY taxes included.
Open the mortgage calculator →Frequently asked questions
Is the mansion tax deductible?
No. It is not deductible as a tax payment, but it can be added to your cost basis, which may reduce capital gains tax when you sell.
Does the mansion tax apply to co-ops?
Yes. Co-ops, condos, townhouses and houses all pay it when the price is $1M or more — the property type does not matter.
Can I avoid the mansion tax by splitting the purchase?
No. New York aggregates related transactions. Artificially splitting a deal to stay under $1M is tax evasion and title companies will not close it.
Calculators by location
Informational content only; not financial or legal advice. Rates and taxes verified as of the update date; confirm figures with your lender and attorney.