NYC Mansion Tax Calculator | Staten Island & Brooklyn
NYC Mansion Tax Calculator
Calculate the exact mansion tax on your New York City purchase — from the $1M threshold through the highest tiers
Your NYC Mansion Tax Breakdown
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Buying a Home in NYC? Know Your Full Costs.
Joseph Ranola provides complimentary buyer consultations covering mansion tax, closing costs, and negotiation strategy across Staten Island and Brooklyn.
What Is the NYC Mansion Tax?
The NYC mansion tax is a transfer tax paid by the buyer on any residential property purchase of $1,000,000 or more in New York City. Despite the name, it applies to condos, co-ops, townhouses, and single-family homes — not just mansions. The tax was restructured in 2019 into a progressive, tiered system where higher-priced properties pay significantly higher rates. For buyers in Staten Island and Brooklyn, where median sale prices are climbing into mansion-tax territory, understanding these tiers is essential for budgeting your purchase.
NYC Mansion Tax Rate Schedule (2019–Present)
The mansion tax uses a tiered structure based on purchase price. The rate applies to the entire purchase price (not just the portion above each threshold):
- $1,000,000 to $1,999,999: 1.00% of the purchase price
- $2,000,000 to $2,999,999: 1.25%
- $3,000,000 to $4,999,999: 1.50%
- $5,000,000 to $9,999,999: 2.25%
- $10,000,000 to $14,999,999: 3.25%
- $15,000,000 to $19,999,999: 3.50%
- $20,000,000 to $24,999,999: 3.75%
- $25,000,000 and above: 3.90%
For commercial properties, the mansion tax is a flat 1% on purchases of $1 million or more.
Who Pays the Mansion Tax?
The mansion tax is always a buyer expense. Sellers do not pay mansion tax. However, sellers of properties near the $1 million threshold should understand how the mansion tax affects buyer psychology and purchasing power. A home listed at $1,050,000 triggers $10,500 in mansion tax for the buyer, which may prompt aggressive negotiation. Strategic pricing just below the threshold can attract more buyers and stronger offers.
Real-World Examples
Example 1: Buying a $1,200,000 townhouse in Tottenville, Staten Island
Purchase price: $1,200,000. Mansion tax rate: 1.00%. Mansion tax due at closing: $12,000. This is on top of the buyer’s other closing costs including attorney fees, title insurance, and lender charges.
Example 2: Buying a $2,500,000 brownstone in Park Slope, Brooklyn
Purchase price: $2,500,000. Mansion tax rate: 1.25%. Mansion tax due at closing: $31,250. At this price point, the mansion tax alone exceeds what many buyers pay in total closing costs on lower-priced purchases.
Example 3: Buying a $975,000 co-op in Bay Ridge, Brooklyn
Purchase price: $975,000. Mansion tax: $0. This purchase falls just below the $1 million threshold, so no mansion tax applies. This is exactly why strategic pricing near the threshold matters.
Frequently Asked Questions
Does the mansion tax apply to co-ops and condos?
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Yes. The NYC mansion tax applies to all residential property types including co-op apartments, condominiums, townhouses, and single-family homes. Any residential purchase of $1,000,000 or more in New York City triggers the mansion tax, regardless of the property type.
Is the mansion tax based on the full purchase price or just the amount over $1 million?
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The mansion tax applies to the entire purchase price, not just the portion above $1 million. For example, a $1,200,000 purchase incurs mansion tax on the full $1,200,000. This is different from a graduated or marginal tax system. That is why the jump from $999,999 to $1,000,000 is so significant for buyers.
Can the mansion tax be negotiated between buyer and seller?
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While the mansion tax is legally a buyer expense, everything in a real estate transaction is negotiable. In softer markets, buyers sometimes negotiate a seller credit to offset part of the mansion tax. However, this is not standard practice. An experienced agent like Joseph Ranola can advise on when and how to negotiate these credits effectively.
When was the NYC mansion tax increased?
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The mansion tax was restructured in April 2019 as part of New York State’s budget. Before 2019, there was a single flat rate of 1% on purchases of $1 million or more. The 2019 reform introduced the current progressive tiered system with rates up to 3.90% for purchases of $25 million and above. The reform specifically targeted luxury real estate transactions.
Are there any exemptions from the NYC mansion tax?
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There are very limited exemptions. Transfers to or from government agencies and certain tax-exempt organizations may be exempt. Standard residential purchases, including primary residences, investment properties, and second homes, are all subject to the mansion tax if the price meets the threshold. There is no first-time homebuyer exemption from the mansion tax.