Mansion Tax Calculator
Complete NYC Mansion Tax Tier Table
| Purchase Price Range | Rate | Tax on Min Price | Example: Tax on $X |
|---|---|---|---|
| Under $1,000,000 | 0% | $0 | $999,999 = $0 |
| $1,000,000 – $1,999,999 | 1.00% | $10,000 | $1,500,000 = $15,000 |
| $2,000,000 – $2,999,999 | 1.25% | $25,000 | $2,500,000 = $31,250 |
| $3,000,000 – $4,999,999 | 1.50% | $45,000 | $4,000,000 = $60,000 |
| $5,000,000 – $9,999,999 | 2.25% | $112,500 | $7,500,000 = $168,750 |
| $10,000,000 – $14,999,999 | 3.25% | $325,000 | $12,000,000 = $390,000 |
| $15,000,000 – $19,999,999 | 3.50% | $525,000 | $17,000,000 = $595,000 |
| $20,000,000 – $24,999,999 | 3.75% | $750,000 | $22,000,000 = $825,000 |
| $25,000,000 and above | 3.90% | $975,000 | $30,000,000 = $1,170,000 |
The mansion tax is applied to the entire purchase price — not just the amount above the threshold. A $2,000,000 purchase pays 1.25% on the full $2,000,000 ($25,000), not just 1.25% on the $1 above $1,999,999. This creates "cliff effects" at each tier boundary.
Mansion Tax at Common NYC Price Points
| Purchase Price | Tier | Rate | Mansion Tax | Total with 20% DP Closing Costs |
|---|---|---|---|---|
| $999,999 | Below threshold | 0% | $0 | ~$18,000 (no mansion tax) |
| $1,000,000 | Tier 1 | 1.00% | $10,000 | ~$43,000 |
| $1,250,000 | Tier 1 | 1.00% | $12,500 | ~$48,500 |
| $1,500,000 | Tier 1 | 1.00% | $15,000 | ~$58,000 |
| $1,999,999 | Tier 1 | 1.00% | $20,000 | ~$67,000 |
| $2,000,000 | Tier 2 | 1.25% | $25,000 | ~$77,000 |
| $3,000,000 | Tier 3 | 1.50% | $45,000 | ~$108,000 |
| $5,000,000 | Tier 4 | 2.25% | $112,500 | ~$210,000 |
The Tier Boundary Cliff Effects
Because the mansion tax applies to the entire purchase price (not just the amount above each threshold), there are significant "cliff effects" at tier boundaries:
- $1,999,999 vs. $2,000,000: Jumping from $1,999,999 to $2,000,000 costs an extra $5,000 in mansion tax (rate jumps from 1% to 1.25%)
- $2,999,999 vs. $3,000,000: Crossing into tier 3 costs an extra $7,500 in mansion tax
- $4,999,999 vs. $5,000,000: Crossing tier 4 costs an extra $37,500
Buyers and sellers near these thresholds often negotiate around them. A seller willing to drop from $2,050,000 to $1,990,000 saves the buyer $10,625 in mansion tax — making the net economics potentially attractive for both parties.
New Construction and the Mansion Tax
The mansion tax applies to new construction purchases as well, including sponsor sales in newly built condominiums. However, there's an important nuance:
- New development sponsors sometimes offer to credit the mansion tax as an incentive to buyers
- The stated purchase price (which triggers the tax) is the contracted price, not any net price after credits
- Some closing cost credits in new construction are structured to effectively offset the mansion tax impact
- Always consult an attorney about how credits are structured in new construction contracts
Does Mansion Tax Apply to Co-ops?
Yes. Unlike the mortgage recording tax (from which co-ops are exempt), the mansion tax applies to co-op purchases at the same rates as condos and houses. A $1.2M co-op purchase triggers a $12,000 mansion tax, paid by the buyer at closing.
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