Last verified: November 8, 2026. By Joe Bjorklund · How we check · Report an error
Key Takeaways
- New York’s mansion tax is 1% of the price for residential purchases of $1 million or more, paid by the buyer; in New York City a supplemental tax adds 0.25% to 2.9% from $2 million, for a combined 1.25% to 3.9% (NYS Department of Taxation and Finance).
- The NYC Real Property Transfer Tax is 1% for residential sales of $500,000 or less and 1.425% above, on top of New York State’s 0.4% transfer tax (NYC Department of Finance; NYS DTF).
- The combined city and state mortgage recording tax is 2.05% of loans under $500,000 and 2.175% of residential loans of $500,000 or more (NYC Department of Finance).
- At the 2023 citywide median residential sale price of $760,000, with 20% down, a buyer would owe about $13,224 in mortgage recording tax and the seller about $13,870 in transfer taxes (NYC Department of Finance; NewYorkCostOfLiving.com calculation).
- The mansion tax and supplemental tax are set by the full price, so the whole price is taxed at the rate for its bracket (NYS DTF).
How much is the mansion tax in NYC?
New York State charges a 1% “mansion tax” on residential purchases of $1 million or more, and the buyer pays it, according to the NYS Department of Taxation and Finance. For residential property in New York City, a supplemental tax applies from $2 million, at rates from 0.25% to 2.9% set by the total price. Together, NYC buyers of $2 million-plus homes pay 1.25% to 3.9% in these two taxes.
The rate applies to the entire price, not just the part above each threshold. A $3 million purchase falls in the 0.5% supplemental bracket, so the buyer owes 1.5% of $3 million, or $45,000. These rates took effect July 1, 2019 (NYS DTF).
| Purchase price | Mansion tax | Supplemental tax | Total buyer rate |
|---|---|---|---|
| Under $1 million | None | None | 0% |
| $1 million to under $2 million | 1% | None | 1% |
| $2 million to under $3 million | 1% | 0.25% | 1.25% |
| $3 million to under $5 million | 1% | 0.5% | 1.5% |
| $5 million to under $10 million | 1% | 1.25% | 2.25% |
| $10 million to under $15 million | 1% | 2.25% | 3.25% |
| $15 million to under $20 million | 1% | 2.5% | 3.5% |
| $20 million to under $25 million | 1% | 2.75% | 3.75% |
| $25 million or more | 1% | 2.9% | 3.9% |
How much is the transfer tax in NYC?
Sellers of New York City property pay two transfer taxes. The city’s Real Property Transfer Tax is 1% of the price for residential sales (one- to three-family houses, condos and co-ops) of $500,000 or less and 1.425% above $500,000, according to the NYC Department of Finance. Other property, including buildings with four or more units, pays 1.425% or 2.625%.
New York State adds a transfer tax of 0.4% on all sales. In New York City it rises to 0.65% for residential sales of $3 million or more and other property sales of $2 million or more. The seller pays both state taxes, and the buyer is liable if the seller does not pay (NYS DTF).
| Property and price | Rate |
|---|---|
| Residential (1–3 family house, condo, co-op), $500,000 or less | 1% |
| Residential, more than $500,000 | 1.425% |
| Other property, $500,000 or less | 1.425% |
| Other property, more than $500,000 | 2.625% |
| Tax | Rate | Who pays |
|---|---|---|
| Base transfer tax (all sales) | 0.4% ($2 per $500) | Seller |
| Additional base tax, NYC residential $3 million+ (other property $2 million+) | +0.25% (0.65% total) | Seller |
| Mansion tax, residential $1 million+ | 1% | Buyer |
| Supplemental tax, NYC residential $2 million+ | 0.25% to 2.9% | Buyer |
How much is the mortgage recording tax in NYC?
Buyers who take a mortgage on a house or condo in New York City pay a mortgage recording tax on the loan amount. The combined city and state rate is 2.05% for mortgages under $500,000 and 2.175% for residential mortgages of $500,000 or more, according to the NYC Department of Finance. The state portion includes a 0.25% special additional tax, which lenders commonly pay on residential loans, so buyers often see 1.8% or 1.925%.
The tax applies to mortgages on real property. Co-op purchases are financed with loans secured by co-op shares rather than mortgages on real property, so the mortgage recording tax does not apply to them.
| Mortgage | Total rate |
|---|---|
| Mortgage under $500,000 | 2.05% |
| Residential mortgage $500,000 or more (1–3 family, condo) | 2.175% |
| Other mortgages $500,000 or more | 2.8% |
What are the closing taxes on a typical NYC home?
The citywide median residential sale price in New York City was $760,000 in 2023, according to the NYC Department of Finance. With 20% down, the buyer would borrow $608,000 and owe about $13,224 in mortgage recording tax at 2.175%. The seller would owe about $13,870: $3,040 in state transfer tax and $10,830 in city transfer tax (NewYorkCostOfLiving.com calculation).
These are taxes only. Attorney fees, title insurance, lender fees and, for co-ops and condos, building fees add to the total.
| Price | Loan | Mortgage recording tax (buyer) | Mansion + supplemental (buyer) | Buyer taxes total | Transfer taxes (seller) |
|---|---|---|---|---|---|
| $760,000 | $608,000 | $13,224 | $0 | $13,224 | $13,870 |
| $1,500,000 | $1,200,000 | $26,100 | $15,000 | $41,100 | $27,375 |
| $3,000,000 | $2,400,000 | $52,200 | $45,000 | $97,200 | $62,250 |
Frequently Asked Questions
What is the mansion tax in NYC?
It is a New York State tax of 1% of the price on residential purchases of $1 million or more, paid by the buyer. In New York City, a supplemental tax adds 0.25% at $2 million, rising to 2.9% at $25 million or more, so the combined buyer rate runs from 1.25% to 3.9% (NYS Department of Taxation and Finance).
Who pays the transfer tax in NYC?
The seller generally pays both the New York City Real Property Transfer Tax and the New York State transfer tax, and the buyer becomes liable only if the seller does not pay or is exempt. The buyer pays the mansion tax and the NYC supplemental tax on residential purchases of $1 million and $2 million or more (NYC Department of Finance; NYS DTF).
How much is the NYC transfer tax on a condo?
For a residential condo sale of more than $500,000, the seller pays the NYC Real Property Transfer Tax of 1.425% plus New York State’s 0.4% transfer tax, a combined 1.825%. Below $500,000 the city rate is 1%. The state rate rises to 0.65% at $3 million (NYC Department of Finance; NYS DTF).
How much is the mortgage recording tax in NYC?
The combined New York City and New York State mortgage recording tax is 2.05% of mortgages under $500,000 and 2.175% of residential mortgages of $500,000 or more, according to the NYC Department of Finance. It is paid when the mortgage is recorded, mostly by the buyer. Lenders commonly pay a 0.25% portion on residential loans.
Is there a mansion tax on co-ops in NYC?
Yes. The mansion tax and the NYC supplemental tax apply to residential real property, and New York treats transfers of co-op shares in a residential apartment the same way for these taxes. A co-op bought for $1.5 million would owe the 1% mansion tax, or $15,000, paid by the buyer (NYS DTF; NewYorkCostOfLiving.com calculation).
Related: NYC property tax · Co-op vs. condo costs · Rent-stabilized apartments · Manhattan cost of living · NYC move-in costs · NYC income tax · NYC sales tax · NYC cost index · Rent vs. buy in NYC
Sources
- NYS Department of Taxation and Finance, TSB-M-19(1)R, Summary of Amendments to New York’s Real Estate Transfer Taxes (mansion tax and NYC supplemental tax) (June 11, 2019)
- NYC Department of Finance, Statistical Profiles of the NYC Real Property Transfer Tax, Calendar Year 2023 (rates and median sale prices) (July 2024)
- NYC Department of Finance, Statistical Profile of the NYC Mortgage Recording Tax, Calendar Year 2023 (combined city and state rates) (2024)
- NYS Department of Taxation and Finance, Mortgage recording tax (rates and Form MT-15) (2026)