Glossary
Mansion Tax
See Also
How Do Tax Policies Affect Individuals and Businesses?The economic consequences of major tax cuts for the richFour Ways to Reduce Racial Inequities in the Federal Income Tax SystemTrade has been a powerful driver of economic development and poverty reductionThe New York City Mansion Tax is a progressive buyer closing cost which ranges from 1% to 3.9% of the purchase price on sales valued at $1 million or more. The Mansion Tax itself consists of 8 individual tax brackets, with the lowest rate of 1% applying to purchases at or above $1 million and less than $2 million. The highest Mansion Tax rate of 3.9% applies to purchases of residential property valued at $25 million or more. Prior to the 2019 update, the Mansion Tax was a fixed rate of 1% for all purchases of $1 million or more.
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NYC Transfer Tax
The NYC Transfer Tax is a seller closing cost of 1% for sales below $500k and 1.425% for sales of $500k or more. Higher rates apply for commercial transactions and multifamily properties with 4 or more units. In addition to the NYC Transfer Tax, sellers in NYC must also pay New York State Transfer Taxes. The combined NYC and NYS Transfer Taxes are the second largest closing cost for sellers aside from broker commissions.
![NYC Mansion Tax Calculator for Buyers [Interactive] | Hauseit® (2)](https://i0.wp.com/www.hauseit.com/wp-content/uploads/2020/04/New-York-City-Transfer-Tax-Rates-scaled.jpg "NYC Mansion Tax Calculator for Buyers [Interactive] | Hauseit® (2)")
NY State Transfer Tax
The New York State Transfer Tax is 0.4% for sales below $3 million and 0.65% for sales of $3 million or more. The higher rate of 0.65% kicks-in at a lower threshold of $2 million for commercial transactions and residential properties with 4 or more units. Prior to the New York Tax Law amendments in 2019, the NYS Transfer Tax was previously a fixed 0.4% regardless of the sale price.The New York State Transfer Tax is authorized by New York Consolidated Laws, Tax Law – TAX § 1402.
![NYC Mansion Tax Calculator for Buyers [Interactive] | Hauseit® (3)](https://i0.wp.com/www.hauseit.com/wp-content/uploads/2020/04/New-York-State-Transfer-Tax-Rates.jpg "NYC Mansion Tax Calculator for Buyers [Interactive] | Hauseit® (3)")
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