| Tax line | Rate | Amount |
|---|
Important: This calculator covers residential sales (1–3 family homes, condos, co-ops). Commercial and bulk sales use different rates. Always confirm closing numbers with your real estate attorney before signing — small structuring choices (deed price vs. mortgage allocation, multi-unit packages) can change the tax significantly.
How NYC closing taxes work
A NYC residential sale triggers three separate transfer-related taxes, sometimes four. They split between buyer and seller in a way that catches first-time NYC buyers off guard.
Seller-side taxes
- NY State Real Estate Transfer Tax (RETT): 0.4% of the gross sale price on every sale.
- NYC Real Property Transfer Tax (RPTT): 1.0% on residential sales under $500,000; 1.425% on residential sales at or above $500,000. The rate applies to the entire price, not just the amount above the threshold.
- NY State supplemental transfer tax: 0.25% on residential sales of $3 million or more (added in 2019). Also seller-paid.
So a typical seller in NYC residential pays a combined 1.4% under $500K, 1.825% from $500K to under $3M, and 2.075% on $3M+. On a $2 million sale that's $36,500 off the top before the seller sees a dollar.
Buyer-side: the mansion tax
The NY State mansion tax is a buyer-paid tax on residential sales of $1 million or more. It uses a tiered structure with a cliff at each tier — the rate applies to the entire price, not just the amount above the tier threshold:
| Sale price | Mansion tax rate | Tax owed |
|---|---|---|
| Under $1,000,000 | 0% | $0 |
| $1,000,000 – $1,999,999 | 1.00% | $10,000 – $19,999 |
| $2,000,000 – $2,999,999 | 1.25% | $25,000 – $37,499 |
| $3,000,000 – $4,999,999 | 1.50% | $45,000 – $74,999 |
| $5,000,000 – $9,999,999 | 2.25% | $112,500 – $224,999 |
| $10,000,000 – $14,999,999 | 3.25% | $325,000 – $487,499 |
| $15,000,000 – $19,999,999 | 3.50% | $525,000 – $699,999 |
| $20,000,000 – $24,999,999 | 3.75% | $750,000 – $937,499 |
| $25,000,000+ | 3.90% | $975,000 + |
Because of the cliff structure, deals near a tier boundary often involve negotiation over price to land just under it — a $1,999,999 deal saves $5,000 vs. a $2,000,000 deal because the entire $2M jumps from 1% to 1.25%.
What's NOT in this calculator
- Commercial and bulk-sale transfer tax rates (different rate schedule — 2.625% NYC RPTT).
- Title insurance, NYC mortgage recording tax (1.8% under $500K, 1.925% above on the loan amount), and other lender-related closing costs.
- Co-op flip taxes (vary by building).
- Capital gains and depreciation recapture on the seller's federal/state income return.
- The proposed pied-à-terre tax in Hochul's May 2026 budget framework — that would be a recurring tax on $5M+ second homes, not a one-time transfer tax. Read our news coverage for the current status.
FAQ
Who pays the mansion tax in NYC?
The buyer. It's due at closing on any residential sale of $1 million or more, paid via NY State Form TP-584. Rates run 1.0% to 3.9% depending on price tier, applied to the entire purchase price (cliff structure).
Who pays the NYC transfer tax?
The seller pays both NYC's RPTT and the NY State RETT. Combined seller-side residential rates: 1.4% under $500K, 1.825% from $500K to under $3M, 2.075% on $3M+ (the last includes the 0.25% NY supplemental).
Does the mansion tax apply only to the amount above $1M, or to the entire price?
The entire price. A $999,999 deal owes $0 mansion tax; a $1,000,000 deal owes $10,000. Each higher tier ($2M, $3M, $5M, $10M, $15M, $20M, $25M) creates the same cliff.
Are mansion tax rates changing in 2026?
Not as of May 2026. The 8-tier schedule above remains in force. Bills have been introduced in Albany to revise rates, and Hochul's May 2026 budget framework included a separate proposed pied-à-terre tax on $5M+ second homes — none enacted yet. We'll update if the legislature passes anything.