The New York Mansion Tax, Explained
On Long Island, plenty of homes sell right around the million-dollar mark — which is exactly where the “mansion tax” kicks in. It's the buyer's tax, but it affects your sale, so it's worth understanding.
Off Market Investors is a family-owned cash buyer based in Glen Cove, New York. Call and you'll reach us directly — not a call center. Here is the mansion tax, and what flipped at $1 million.
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What it is and who pays
The New York mansion tax is an additional 1% of the price on residential sales of $1,000,000 or more, and it is paid by the buyer (the grantee). If the buyer happens to be exempt, the seller has to cover it — but in a normal sale, it's the buyer's line item.
The $1 million cliff
Here's the part that surprises people: the 1% applies to the entire price, not just the amount over $1,000,000. So a sale at $1,000,000 carries a $10,000 mansion tax, while $999,000 carries none. Near the line, that cliff can shape how buyers bid — which is why it matters to sellers even though buyers pay it.
Inside New York City (not Long Island)
If you're selling in one of the five boroughs rather than on Long Island, more applies: the city adds its own Real Property Transfer Tax (1% up to $500,000, 1.425% above, paid by the seller), an extra 0.25% state base tax on higher-value sales, and a progressive supplemental mansion tax that climbs in tiers up to 3.9% on the priciest homes. None of that applies in Nassau or Suffolk.
- Confirm whether your sale price reaches $1,000,000 — below that, there's no mansion tax.
- Remember the 1% hits the whole price, not just the amount over $1M.
- If you're pricing near $1,000,000, weigh the cliff — it can affect how buyers offer.
- If you're selling in NYC (not Long Island), factor in the city's additional taxes.
- Have your attorney confirm who pays what on your settlement statement.
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