The New York Mansion Tax: Current 2026 Rates and What Buyers Need to Know

*Last reviewed: September 14, 2026*

Current as of September 14, 2026: New York State imposes a 1% additional tax on qualifying residential conveyances with consideration of $1 million or more. Certain New York City residential conveyances of $2 million or more are also subject to a supplemental tax. Because Staten Island is one of New York City's five boroughs, the NYC supplemental tax can apply to qualifying Staten Island transactions.

New York's mansion tax has a name that no longer matches reality. When it was enacted in 1989, a $1,000,000 home in New York was genuinely a mansion — a high-end property well above the reach of most buyers. Today, in a market where a modest three-bedroom single-family home in Staten Island routinely sells for $700,000 to $900,000 and prices continue to climb, the million-dollar threshold is something that middle-class buyers increasingly have to plan for.

If you are buying a home in or around that price range, understanding exactly how the mansion tax works — and what it costs — is essential budgeting information.

What Is the Mansion Tax?

The mansion tax is a New York State transfer tax imposed on the buyer in any qualifying residential real estate purchase of $1,000,000 or more. Unlike the New York State transfer tax paid by sellers, or the mortgage recording tax discussed in the previous post, the mansion tax is generally the buyer's responsibility.

It was first enacted in 1989 at a flat rate of 1% on all purchases at or above $1,000,000. In 2019, New York City added a supplemental surcharge on top of the state tax for purchases within the five boroughs — including Staten Island — at $2,000,000 and above.

The mansion tax is ordinarily handled as part of the closing and filing process. Any exception or special treatment must be confirmed for the specific transaction.

Current Rates: State and City Combined

For purchases in Staten Island — which, as part of New York City, is subject to both the state tax and the NYC surcharge — the combined rates are:

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Dollar examples use rounded amounts; actual filing calculations may involve statutory rounding. For most Staten Island buyers, the relevant threshold is the first one: purchases between $1,000,000 and $1,999,999, where the combined rate is 1% — all state, no NYC surcharge. The NYC supplemental tax applies to qualifying residential conveyances throughout New York City, including Staten Island, at $2,000,000 and above.

Official sources: NYS Mansion Tax | NYC Tax Information

The Cliff Effect: Why $999,999 and $1,000,001 Are Very Different Numbers

Here is the most important thing to understand about how the mansion tax is calculated — and it surprises many buyers:

The tax applies to the entire purchase price, not just the amount above the threshold.

A buyer who purchases at $999,999 pays zero mansion tax. A buyer who purchases at $1,000,000 pays $10,000 in mansion tax — on the full $1,000,000. A buyer who purchases at $1,100,000 pays $11,000 — on the full $1,100,000.

This creates what tax professionals call a "cliff effect" at the $1,000,000 mark. Cross the threshold by even one dollar and the entire purchase price becomes taxable.

The same cliff exists — to a lesser degree, because the rate increase is smaller — at the $2,000,000 threshold and each tier above it.

This is not a quirk or an oversight. It is simply how the statute is written. And it has real implications for how buyers and sellers negotiate price near these thresholds.

Negotiating Around the Threshold

When a property is listed in the range of $980,000 to $1,050,000, both buyers and sellers are often acutely aware of the $1,000,000 line. Here is how it plays out in practice:

Buyers near $1,000,000 may push for a price below the threshold. A buyer willing to pay $1,010,000 might instead offer $995,000 — knowing that keeping the price under $1,000,000 saves them $10,000 in mansion tax. Whether the seller accepts that trade-off depends on their own economics and motivation.

Sellers near $1,000,000 face a pricing challenge. Listing at $1,000,000 or just above it may effectively limit the buyer pool to those who can absorb the additional $10,000 in tax. Some sellers price at $999,000 or $999,999 specifically to avoid this dynamic — even if their true target net is above $1,000,000 after adjusting for transaction costs.

The allocation of personal property can affect the calculation. In some transactions, the value assigned to personal property — appliances, furniture, fixtures — is allocated separately from the real property price, potentially keeping the real property component under the threshold. Any allocation involving personal property must be genuine, properly documented, and supported by fair value. Artificial allocations may create legal and tax problems and should be reviewed by counsel before being included in a contract.

Keep the general point that a true seller concession or closing-cost credit does not necessarily reduce the purchase-price consideration used to calculate transfer taxes or mansion tax.

A closing-cost credit generally does not change the stated purchase-price consideration for transfer-tax purposes. A genuine price reduction is different from a credit, but the precise tax treatment depends on the contract, transaction documents, applicable law, and the nature of the concession.

The $975,000 versus $1,025,000 example in this article is a simplified educational example. A concession may affect financing only if the loan structure, lender underwriting, price, or closing documents are changed.

The key takeaway: if you are negotiating near the $1,000,000 threshold, make sure your attorney is involved in the discussion. The mansion tax implications are a legitimate part of the negotiation, and an experienced real estate attorney knows how to address them properly.

Who Pays the Mansion Tax?

The buyer is generally the person legally responsible for the mansion tax. The parties may nevertheless negotiate a seller credit, reimbursement, price adjustment, or other contractual arrangement that affects the economic burden. A contractual credit does not necessarily change the buyer's statutory tax liability.

Whether a seller will agree to such a concession depends on market conditions, the seller's motivation, and the strength of the offer. In a competitive market, sellers rarely offer closing cost credits. In a slower market, or when a deal needs to get done, there is more room to negotiate.

Does the Mansion Tax Apply to All Property Types?

The mansion tax applies to qualifying residential real property or an interest in residential real property in New York, including:

• Single-family homes
• Condominiums
• Cooperative apartments (co-ops)
• Two-family and three-family homes

Mixed-use, commercial, multifamily, sponsor, and entity transactions require separate analysis because the applicable tax treatment may depend on the property classification and transaction structure.

New Development and Sponsor Sales

The mansion tax generally applies to a qualifying residential purchase regardless of whether the property is a resale, new construction, condominium sponsor sale, cooperative sale, or single-family home. The treatment of other closing taxes and any contractual reimbursement may differ under the offering plan and contract.

The Sponsor Pays NYC Transfer Tax on New Development. In new development condo purchases in New York City, the NYC Real Property Transfer Tax (RPTT) is customarily paid by the sponsor (seller) rather than the buyer — but the contract often requires the buyer to reimburse the sponsor for some or all of it. This is a negotiated point and varies by development.

Offering Plan Terms Control. In new development purchases, the sponsor's offering plan governs many terms of the transaction, and some provisions — including who pays certain taxes — may be non-negotiable. Your attorney reviews the offering plan carefully to make sure you understand your cost obligations before you sign.

The Mansion Tax and Your Mortgage

If you are financing your purchase, the mansion tax has an indirect relationship with your mortgage recording tax as well. Because both taxes are calculated on different bases — mansion tax on purchase price, mortgage recording tax on loan amount — a larger down payment reduces your mortgage recording tax but does not reduce your mansion tax. Conversely, the mansion tax applies equally whether you finance or pay cash.

When budgeting total closing costs on a purchase at or above $1,000,000, you may be looking at:

• Mansion tax: $10,000 or more
• Mortgage recording tax: $8,000 to $16,000+ depending on loan amount
• Title insurance, attorney fees, lender fees, and prepaid items

The combined tax burden alone on a $1,100,000 purchase with an $880,000 mortgage can easily exceed $25,000 — before any other closing costs.

When Does the Mansion Tax Become Relevant for Staten Island Buyers?

While Staten Island has historically been the most affordable of New York City's five boroughs, prices have risen meaningfully over the past decade. As of 2025 and 2026, buyers of larger or renovated homes in neighborhoods such as Todt Hill, Lighthouse Hill, Annadale, Huguenot, and parts of Richmond and New Dorp are increasingly encountering the million-dollar threshold.

For buyers in those neighborhoods — and for buyers of larger or renovated homes elsewhere on the Island — the mansion tax is not an abstract concern. It is a real and immediate closing cost that needs to be in the budget from day one.

Practical Planning for Buyers Near the Threshold

1. Know your number early

If you are shopping in the $900,000 to $1,100,000 range, get your budget right from the start. The difference between purchasing at $990,000 and $1,010,000 is not just $20,000 in purchase price — it is $20,000 plus $10,100 in mansion tax, for a total out-of-pocket difference of $30,100.

2. Factor it into your offer strategy

When making an offer on a property listed above $1,000,000, understand that the mansion tax is a fixed cost of the transaction at that price point. If the property is listed at $1,050,000 and you want to negotiate down to $999,000 to avoid the tax, that is a reasonable conversation — but be realistic about whether the seller will accept it.

3. Do not let the tax drive a bad decision

Avoiding the mansion tax is a legitimate financial consideration, but it should not lead you to pass on the right house at the right price. Paying $10,000 in mansion tax on a $1,000,000 purchase you love is almost always better than purchasing a $995,000 property that is not what you actually want.

4. Discuss it with your attorney before making an offer

Your attorney can help you think through the tax implications of different price points and how to structure negotiations around the threshold — before you are committed to a contract.

Ready to Buy in Staten Island?

Whether you are purchasing well below the mansion tax threshold or planning for a seven-figure purchase, having an experienced attorney in your corner means you understand every cost before you get to the closing table — not after.

With over 25 years representing Staten Island home buyers, I provide straightforward guidance on all aspects of the transaction, including the tax obligations that other advisors may overlook.

Call (718) 442-2010, text (718) 273-0001, or [schedule a free consultation online](/about).

*This article provides general educational information and is not legal, tax, accounting, lending, or financial advice. Tax rates, exemptions, filing requirements, and closing practices may depend on the property, transaction structure, applicable law, and closing date. Confirm the current calculation with the appropriate attorney, lender, title company, closing agent, or tax professional.*