New York Mansion Tax and Progressive NYC Transfer Tax Brackets
Updated October 2026
New York's mansion tax is a buyer-paid charge on the purchase price, and the name has not aged well. Enacted when $1 million bought something exceptional, it now catches ordinary three-bedroom houses in Nassau County and modest two-bedroom condos in Brooklyn. The base rate is 1% statewide starting at a $1 million price, and inside New York City a progressive schedule layers on top of that, climbing toward 3.9% at the highest brackets.
The structure matters more than the headline rate because the tax is cliff-based, not marginal. Crossing a bracket threshold reprices the entire purchase at the higher rate, not just the dollars above the line. A contract written at $999,000 owes no mansion tax; the same deal at $1,000,000 owes $10,000. Negotiating just under a threshold is one of the few genuinely free wins available in a New York closing.
How The Charges Stack
| Charge | Who pays | Basis |
|---|---|---|
| Mansion tax, statewide base | Buyer | 1% of price at $1,000,000 and above |
| NYC supplemental mansion tax | Buyer | Progressive brackets above $2,000,000, rising toward 3.9% |
| NYS real estate transfer tax | Seller | 0.4% of price, 0.65% on higher-value residential |
| NYC real property transfer tax | Seller | 1% to 1.425% residential, by price tier |
| Mortgage recording tax | Buyer | 1.80% to 1.925% NYC, 0.75% to 1.25% Upstate, on the loan |
Two details regularly surprise buyers. First, mansion tax applies to co-ops even though mortgage recording tax does not, because mansion tax follows the price rather than the lien. Second, in new construction the sponsor frequently shifts transfer tax to the purchaser by contract, which inflates the taxable consideration and can push a borderline deal over a bracket.
Planning Around It
- Price the thresholds into your offer strategy, especially between $950,000 and $1,050,000 where the cliff is steepest relative to value.
- Separate personal property such as furniture into a distinct bill of sale where legitimately warranted, which your attorney will allocate defensibly.
- Remember it is cash, not financeable. Mansion tax is due at closing from your own funds and does not fold into the loan, so it sits alongside your down payment in the closing cost estimator.
- Watch the financing interaction. Many $1 million-plus downstate purchases still fit the 2026 conforming ceiling of $1,249,125, so you can face mansion tax without jumbo pricing. Compare structures in the mortgage options guide.
Run the full payment picture through the monthly payment calculator, and consult the NY Department of Taxation and Finance Property Tax pages plus the Consumer Financial Protection Bureau for official closing guidance.
Compare Current Mortgage Rates
Compare current APRs, points, fees, and estimated monthly payments from participating lenders below.
Loan Program Comparison: 2026 Benchmarks
New York Mansion Tax and Progressive NYC Transfer Tax Brackets — Choose a mortgage by comparing eligibility, upfront cash and total monthly costs, not the advertised rate alone. Conventional, FHA, VA and USDA serve different borrowers. Confirm county limits, taxes, insurance and lender requirements before comparing personalized Loan Estimates for your household.
Historical 2025 one-unit comparison: conforming $806,500; FHA floor $524,225. County and unit-count limits can differ.
| Loan program | Down payment / equity | 2026 one-unit baseline | Costs and page-specific comparison |
|---|---|---|---|
| Conventional | 3%–5% subject to eligibility | $832,750 | PMI generally below 20% down |
| FHA | 3.5% at 580+; 10% at 500–579 | $541,287 floor | 1.75% upfront MIP; 0.55% annual for >95% LTV, base loan ≤$726,200, term >15 years |
| VA | 0% for eligible borrowers | No VA limit with full entitlement | No monthly PMI; funding fee unless exempt |
| USDA | 0% for eligible borrowers | Income, address and repayment eligibility | Guarantee and annual fees; confirm current schedule |
| Jumbo | Lender-specific cash and reserves | Above applicable conforming limit | Lender-specific pricing and insurance |
| Home Equity / Refinance | Equity and underwriting dependent | Property and lender dependent | Compare closing costs, term and break-even |
Sources: FHFA limits; HUD FHA limits.
Editorial Methodology & Primary Sources
Verification date: Not recorded; check the primary source and lender timestamp before relying on an estimate.
Rate comparisons use participating lender feeds, not a whole-market survey or guaranteed offers. Freddie Mac PMMS is a market benchmark, not a personalized quote. Calculator models rely on published regulatory formulas and disclosed assumptions rather than fabricated first-person loan testing.
Monthly principal and interest use the amortization formula P × r / (1 − (1 + r)−n), where r is the monthly note rate and n is the number of payments; at zero interest use P / n. PITI adds monthly property taxes and homeowners insurance; PMI is separate. APR includes applicable finance charges under Regulation Z and is not the note rate used for payments. Compare lender Loan Estimates for actual APR and fees.
- Consumer Financial Protection Bureau (CFPB) — Loan Estimates, APR and borrower disclosures; Regulation Z.
- U.S. Department of Housing and Urban Development (HUD / FHA) — FHA program guidance.
- U.S. Department of Veterans Affairs (VA) — VA loan eligibility and benefits.
- Freddie Mac Primary Mortgage Market Survey (PMMS) — published rate benchmarks.
- U.S. Census state tax collections — state property tax benchmarks; confirm parcel-specific assessments and exemptions with the state revenue department and local assessor.
The payment snapshot uses illustrative annual taxes of 1% of home price, $1,200 insurance and 0.5% PMI below 20% down, not verified local quotes. Other calculators disclose their inputs and assumptions. Published guidance and lender feeds may change independently; confirm current program rules, taxes and offers before a decision.