The "mansion tax" is New York's one-time transfer tax on residential purchases of $1 million or more — a threshold set in 1989, when $1M bought a mansion, and never indexed, which is why it now reaches one-bedroom condos. Since July 2019 it has been progressive: eight brackets from 1% to 3.9%, and the rate applies to the entire purchase price, not the amount over the line.
The 2026 bracket table
Rates are unchanged for 2026. Each bracket is a cliff — clear it by a dollar and the higher rate applies to every dollar:
| Purchase price | Rate (on the full price) | Tax at bracket floor |
|---|---|---|
| $1,000,000 – $1,999,999 | 1.00% | $10,000 |
| $2,000,000 – $2,999,999 | 1.25% | $25,000 |
| $3,000,000 – $4,999,999 | 1.50% | $45,000 |
| $5,000,000 – $9,999,999 | 2.25% | $112,500 |
| $10,000,000 – $14,999,999 | 3.25% | $325,000 |
| $15,000,000 – $19,999,999 | 3.50% | $525,000 |
| $20,000,000 – $24,999,999 | 3.75% | $750,000 |
| $25,000,000 and up | 3.90% | $975,000 |
Technically this is the base New York State 1% "mansion tax" plus the supplemental transfer tax tiers added in July 2019 for New York City residential deals — the market simply calls the combined schedule the mansion tax.
Who actually pays
The buyer, by statute, at closing. (Liability can shift to the seller if the buyer doesn't pay, and sponsors of new developments sometimes negotiate it, but on a standard resale it is the buyer's check.) It sits on top of the transfer taxes the seller customarily pays — New York State's 0.4% (0.65% on residential deals of $3M+) and the City's RPTT of 1% under $500K / 1.425% above. Together these are why NYC closing costs surprise out-of-town buyers.
What it costs at real price points
| Deal | Mansion tax due at closing |
|---|---|
| $1,050,000 one-bedroom condo | 1.00% → $10,500 |
| $3,000,000 loft | 1.50% → $45,000 |
| $8,000,000 second-home condo | 2.25% → $180,000 |
| $25,000,000 townhouse | 3.90% → $975,000 |
The cliffs shape real negotiations: a contract at $1,999,000 saves the buyer $10,013 versus $2,000,000, which is why so many deals print just under a bracket line.
The 2026 twist: it's no longer the only luxury tax in the room
As of July 1, 2026, the mansion tax has an annual sibling: the pied-à-terre surcharge — what this site covers wall to wall. The two work on entirely different logic:
| Mansion tax | Second-home surcharge (2026) | |
|---|---|---|
| When | Once, at closing | Every year you own it |
| Trigger | Purchase price ≥ $1M, any use | Non-primary residence; condo/co-op over $1M DOF market value, house over $5M |
| Rate | 1%–3.9% of price | 4%–6.5% of full DOF market value (condos/co-ops, Phase 1); 0.8%–1.3% (houses) |
| Avoidable? | Not meaningfully | Yes — primary residence, immediate family, or a 12-month arm's-length lease exempts it |
For a buyer weighing a $4M pied-à-terre, the closing-table math is now the smaller question. The mansion tax is $60,000, once. If the unit's DOF market value clears $1M and no exemption applies, the annual surcharge can exceed that every single year. The number that decides it is not the price you pay — it's the Department of Finance market value on the unit's assessment roll, a figure most buyers have never looked up. Whether your situation counts as a second home is its own test, and worth reading before you assume either way.
Check the number that actually matters
We pull your building's official DOF figures, run the surcharge test on the exact unit, and email a written report — free, usually within the hour: check your address here. For the deeper comparison of the two taxes with worked five-year holds, see our sister guide on Mansion Tax vs. Pied-à-Terre Tax.
Educational, not tax advice. Mansion-tax figures are the statutory schedule applied to illustrative prices; surcharge figures depend on DOF's assessment-roll values for the specific property. Confirm your closing numbers with your attorney.