What is the NYC Mansion Tax and who pays it?

The NYC Mansion Tax is an additional transfer tax paid by the buyer on residential purchases of $1,000,000 or more. It was originally 1% on all purchases ≥ $1M, but since April 1, 2019, it has a tiered structure from 1.00% to 3.90% depending on price. The defining feature of the mansion tax is that the rate applies to the ENTIRE purchase price — not just the amount over each threshold. This creates cliff effects at every bracket boundary. The tax is due at closing from the buyer's funds.

Why is the mansion tax so dangerous near bracket boundaries?

Because the rate applies to the full price (not just the excess), crossing a bracket threshold increases the tax on every dollar, not just the marginal dollar. For example: a $2,999,999 purchase triggers 1.25% ($37,499); a $3,000,000 purchase triggers 1.50% ($45,000) — a $7,501 jump for a $1 price increase. Similarly, at $5M the tax jumps from $75,000 (1.50%) to $112,500 (2.25%). In high-value transactions, negotiating a price just below a tier boundary can save tens of thousands of dollars.

What is the NYC Real Property Transfer Tax?

The NYC RPTT is paid by the seller at closing. For residential properties (1–3 family, condos, coops): 1.00% if the price is $500,000 or less; 1.425% if the price exceeds $500,000. For commercial and 4+ unit residential: 1.425% ≤ $500K; 2.625% above. In new development sales, the sponsor (developer) often agrees to pay the RPTT on behalf of the buyer — check your contract carefully. The RPTT is in addition to the NY State Transfer Tax.

What NY State taxes apply to real estate sales?

The NY State Transfer Tax is 0.4% of the sale price, paid by the seller. There is also a separate NY State "mansion tax" (additional transfer tax) for residential sales above $1 million — but this is BUYER-paid and uses the same bracket structure as the NYC mansion tax. In practice, buyers often see "NYC Mansion Tax" and "NYS Mansion Tax" combined as a single line item. This calculator consolidates both into the buyer's total. The NY State Transfer Tax (0.4%) is always a seller cost.

Is the NYC Mansion Tax deductible?

The mansion tax adds to your cost basis for capital gains purposes — meaning you recover it when you eventually sell the property. If the property is an investment property or rental, the tax may be deductible as a business expense or added to basis. For a primary residence or second home, it is NOT deductible as an itemized deduction, but it reduces your taxable gain when you sell. Keep records of all closing costs paid, including mansion tax, for capital gains calculation at time of sale.

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NYC Mansion Tax Calculator — Buyer & Seller Closing Costs

Calculate all NYC real estate transfer taxes for buyers and sellers — mansion tax (1%–3.9%), mortgage recording tax, NYC RPTT, and NY State transfer tax — with cliff-boundary alerts.

By The FinCalc TeamUpdated May 30, 2026

Buying or selling a home in New York City involves four overlapping transfer taxes — the NYC Mansion Tax (buyer), NYC Real Property Transfer Tax (seller), NY State Transfer Tax (seller), and NYC Mortgage Recording Tax (buyer with a mortgage). This calculator shows all four taxes for your transaction, identifies dangerous tier-boundary cliff effects where crossing a price threshold increases the mansion tax on the entire purchase price, and breaks down buyer vs. seller closing costs in detail.

How NYC Transfer Taxes Work

Four Taxes, Two Parties

Every NYC residential transaction involves two parties paying different taxes:

Buyer pays:

NYC Mansion Tax (1.00%–3.90% of full price, if ≥ $1M)
NYC Mortgage Recording Tax (1.80%–1.925% of loan, if financing; not for coops)

Seller pays:

NYC Real Property Transfer Tax (1.00%–2.625% depending on property type and price)
NY State Transfer Tax (0.40% of sale price)

The Cliff Effect — Most Important Feature

The mansion tax's most dangerous feature is that the rate applies to the entire purchase price, not just the excess above each threshold. This creates cliff effects:

| Price | Rate | Mansion Tax | Tax vs. $1 Less | |-------|------|-------------|-----------------| | $1,999,999 | 1.00% | $19,999 | baseline | | $2,000,000 | 1.25% | $25,000 | +$5,001 | | $2,999,999 | 1.25% | $37,499 | baseline | | $3,000,000 | 1.50% | $45,000 | +$7,501 | | $4,999,999 | 1.50% | $74,999 | baseline | | $5,000,000 | 2.25% | $112,500 | +$37,501 |

Negotiating a $5M purchase price to $4,999,999 saves $37,500 in mansion tax alone.

When to Use This Calculator

When making an offer on a NYC property — understanding the full buyer cost stack (mansion tax + MRT) before you bid helps you negotiate more precisely and budget for closing.

When the price is near a bracket boundary — the calculator flags when you are within $100,000 of the next tier and shows exactly how much the mansion tax jumps. Use this to negotiate with a seller: if you are at $2.05M, the cost of dropping to $1.999M is only $50,100 from the seller's price — but saves you $5,001 in mansion tax.

When comparing a coop vs. condo at similar prices — the MRT exemption on coops makes them materially cheaper to finance. A $3M coop vs. a $3M condo with a $2.4M mortgage saves the buyer approximately $46,200 in MRT.

For real estate attorneys and brokers — use this to build the "true cost" closing worksheet for clients before contract signing.

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Understanding the Inputs

Purchase Price: The agreed sale price for the property. This is the critical input for the NYC Mansion Tax because the rate applies to the ENTIRE purchase price, not just the amount over each bracket's threshold. This creates sharp "cliff" effects: a $2,000,000 purchase triggers 1.25% on the full $2M ($25,000), while a $1,999,999 purchase triggers only 1.00% ($19,999) — a $5,001 difference for a $1 price difference. Negotiating below a tier boundary can produce significant tax savings.
Property Type: Affects the NYC Real Property Transfer Tax (RPTT) rate paid by the seller. Residential properties (1–3 family homes, condominiums, cooperatives) have a lower RPTT rate: 1.00% for prices ≤ $500,000 and 1.425% above. Commercial properties and 4+ unit residential buildings have a higher RPTT rate: 1.425% ≤ $500,000 and 2.625% above. The NYC Mansion Tax applies only to residential purchases of $1 million or more — not commercial properties.
Cooperative Apartment (Coop): Cooperative apartments (coops) are shares in a corporation, not real property — this distinction has a major tax implication. Coops are exempt from the NYC Mortgage Recording Tax (MRT) because there is no real property deed to record. The NYC Mansion Tax still applies to coop purchases over $1 million. If you are buying a coop with financing, you save the entire MRT (1.80%–1.925% of the loan amount net of lender's share), which can be $20,000–$40,000 on a large purchase.
Taking a Mortgage: If you are financing the purchase with a mortgage on real property (not a coop), the NYC Mortgage Recording Tax (MRT) applies. The total MRT rate is 2.05% for loans under $500,000 or 2.175% for loans $500,000 and above. The lender pays 0.25% of this rate; the buyer pays the remainder (1.80% net for loans < $500K; 1.925% net for loans ≥ $500K). Cash purchasers and coop buyers avoid the MRT entirely.
Mortgage Loan Amount: The actual loan amount, not the purchase price. The Mortgage Recording Tax is calculated on the loan amount. A $1,500,000 mortgage triggers the higher 2.175% total rate (1.925% buyer net) = $28,875 in MRT paid by the buyer. The MRT is paid at closing and is not deductible for federal income tax purposes on a primary residence, though it may be deductible on investment properties.

Frequently Asked Questions

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The FinCalc Team

Personal Finance Experts

The FinCalc team is a group of personal finance writers, analysts, and engineers dedicated to building accurate, transparent financial calculators. Every formula is verified against industry standards and explained in plain language.

Last reviewed and updated: May 30, 2026