By John-Scott Johnson · January 2026
Understand the rates, the price thresholds and what to budget before you make an offer.
If you are buying a home in NYC for $1 million or more, mansion tax belongs in your budget from the start. Despite its name, it applies to qualifying apartment purchases as well as houses.
For a typical fully residential purchase, the tax is $15,000 at $1.5 million, $25,000 at $2 million and $45,000 at $3 million. The rate applies to the entire taxable purchase price, so crossing a threshold can make a small increase in your offer considerably more expensive.
NYC mansion tax rates for 2026
New York State imposes a 1% mansion tax on qualifying residential purchases of $1 million or more. In NYC, a supplemental tax begins at $2 million. The table below combines both into the total buyer rate.
Taxable purchase price | Total mansion tax rate |
|---|---|
Under $1 million | 0% |
$1 million to under $2 million | 1% |
$2 million to under $3 million | 1.25% |
$3 million to under $5 million | 1.5% |
$5 million to under $10 million | 2.25% |
$10 million to under $15 million | 3.25% |
$15 million to under $20 million | 3.5% |
$20 million to under $25 million | 3.75% |
$25 million or more | 3.9% |
These rates apply to an ordinary purchase of a fully residential property. Mixed-use buildings and purchases involving multiple properties can require a different calculation, which your attorney should confirm.
Source: New York State tax guidance and the current NYC transfer tax instructions.
How to calculate your NYC mansion tax
Multiply the taxable purchase price by the rate for that price range. For a standard residential resale, that generally means using the agreed purchase price.
Purchase price | Rate | Mansion tax |
|---|---|---|
$1,500,000 | 1% | $15,000 |
$2,000,000 | 1.25% | $25,000 |
$3,000,000 | 1.5% | $45,000 |
The tax is based on the purchase, not the size of your mortgage. A larger down payment or an all-cash purchase does not remove it.
Why price thresholds matter when making an offer
At $1 million, mansion tax starts at $10,000. At $2 million, the total rate increases from 1% to 1.25%. At $3 million, it increases again to 1.5%.
For example, a $1,999,000 purchase carries $19,990 in mansion tax. At $2 million, the tax is $25,000. That $1,000 increase in price adds $5,010 in tax, increasing your total outlay by $6,010 before other costs.
This is worth discussing before you settle on an offer. A home may justify a price above a threshold, but you should understand the full cost of the decision. Our senior partners help you compare recent sales, assess the asking price and negotiate with that budget in mind.
Our guide to making an offer on an NYC apartment explains how to prepare your terms and supporting documents.
Who pays mansion tax and when
The buyer generally pays mansion tax. Plan to have the money available at closing, in addition to your down payment and other closing costs. Your attorney will confirm the amount and arrange the payment and filing as part of the transaction.
A seller contribution toward closing costs may be negotiated as part of the deal. Ask your attorney and lender to confirm how any credit is treated before counting it in your budget.
Does mansion tax apply to co-ops and new developments
Yes. Qualifying purchases of residential co-ops, condos and one- to three-family houses are subject to mansion tax. A condo bought directly from a developer is not exempt simply because it is new construction.
New development purchases can also come with additional closing expenses under the contract. Our new development condo guide explains what to review and negotiate.
Include mansion tax in the full cost of buying
Mansion tax is one part of your closing budget. Depending on the property and financing, you may also have attorney fees, title insurance, mortgage recording tax, lender fees and building charges. Our NYC buyer closing costs guide explains the main categories.
Ask for an estimate for the specific apartment or house before signing the contract. Allow separately for cash you want to retain after closing, including any reserves required by a co-op board.
How BRN helps with your purchase
BRN provides NYC buyer representation and represents buyers only. You work directly with our senior partners to evaluate properties, compare prices and negotiate your purchase. You never pay BRN a brokerage fee. Our compensation comes from the seller.
We return half of the commission we receive to you, up to 1.5% of the purchase price. For example, on a $3 million purchase where BRN receives a 2.5% commission, your return is $37,500.
That money helps with the overall cost of buying. It does not change the mansion tax due on the purchase.
We send you a check or wire the money to you right after closing, once BRN has received its commission. If you prefer, we can work with your lender and attorney to apply the return toward eligible closing costs.
Learn more about BRN’s buyer commission return, or Contact Us to discuss a home you are considering.
Your attorney should confirm the tax for your transaction. Speak with your own tax advisor about your circumstances; BRN does not provide individual tax advice.
