The NYC Mansion Tax: Full Bracket Table and How It Actually Works
Every bracket of the NYC mansion tax, the cliff effects, and how to think about pricing around the thresholds.
The "mansion tax" is a buyer-paid tax on residential real estate sales in New York State of $1,000,000 or more. In NYC, it stacks on top of the original 1% state mansion tax, ranging from 1.0% on a $1M sale up to 3.9% on $25M+ sales.
It is a cliff tax — cross a bracket by even one dollar and the new rate applies to the whole purchase price. Plan accordingly when you're near a threshold.
→ Calculate the exact mansion tax on any Manhattan purchase with the NYC Mansion Tax Calculator — flat-rate cliff math, with cliff warnings near each threshold.
The full bracket table
- Under $1,000,000: 0%, no tax.
- $1,000,000 to $1,999,999: 1.00% ($10,000 to $19,999).
- $2,000,000 to $2,999,999: 1.25% ($25,000 to $37,499).
- $3,000,000 to $4,999,999: 1.50% ($45,000 to $74,999).
- $5,000,000 to $9,999,999: 2.25% ($112,500 to $224,999).
- $10,000,000 to $14,999,999: 3.25% ($325,000 to $487,499).
- $15,000,000 to $19,999,999: 3.50% ($525,000 to $699,999).
- $20,000,000 to $24,999,999: 3.75% ($750,000 to $937,499).
- $25,000,000 and above: 3.90% ($975,000+).
The 1.00% bracket is the original statewide mansion tax that's been on the books since 1989. Everything above it (the additional 0.25%, 0.50%, 1.25%, etc.) is the New York City additional tax that was layered on in 2019. The structure is set in state law; rates haven't changed since 2019.
Who pays it, when it applies, and the cliff problem
The buyer pays it. The check goes to the New York State Department of Taxation and Finance, filed via the TP-584 form at closing along with the deed (for condos and houses) or the assignment of stock and lease (for co-ops). Your attorney handles the filing.
The tax applies to residential real estate at $1,000,000 or more — co-ops, condos, single-family homes, 2-3 family homes, some mixed-use properties (proportional). It does not apply to commercial real estate, vacant land, or transfers between spouses.
The trigger is the purchase price, not the assessed value.
Mansion tax brackets are not phase-ins, they're cliffs. Crossing a threshold by one dollar changes the rate on the entire purchase price.
- A $1,999,999 sale: 1.00% × $1,999,999 = $19,999.99 in mansion tax.
- A $2,000,000 sale: 1.25% × $2,000,000 = $25,000 in mansion tax.
That's an extra $5,000 of tax for $1 of price. This is why offers cluster at $1,995,000 instead of $2,000,000, and at $4,995,000 instead of $5,000,000.
Threshold-planning tactics and worked examples
Legitimate moves to manage thresholds:
- Negotiate just below the line (most common — works when the seller has room to move).
- Separate fixtures and personal property. A buyer can sometimes structure part of the price as a separate bill of sale for furniture, art, or specialty fixtures, which doesn't count toward mansion tax — needs careful documentation, fair-market valuations, and a seller who agrees.
- Buy unfinished. New-development sponsors sometimes price the unit and the buildout separately; mansion tax applies to the unit purchase, not the buildout contract.
- Walk away. If the seller won't budge to $1,999,000 from $2,025,000 and the cliff costs you $5,000+, sometimes the best move is a different apartment.
What does NOT work: fake side payments, undisclosed credits, post-closing rebates, or labeling cash for renovation as part of price. The Department of Finance audits these. Penalties are steep.
Worked example. You're buying a $2,200,000 condo and your broker negotiates the seller down to $2,100,000 (still in the 1.25% bracket).
- Mansion tax 1.25% × $2,100,000 = $26,250
- Mortgage recording tax on a $1,575,000 mortgage at 1.925% = $30,319
- Title insurance ~$9,000
- Attorney + lender fees ~$6,500
- Building/condo fees ~$3,500
- Total closing costs roughly $75,500, or 3.6% of purchase price.
Crossing the $5M cliff. At $5,050,000, mansion tax is 2.25% × $5,050,000 = $113,625. At $4,950,000, it's 1.50% × $4,950,000 = $74,250. Negotiating the seller down by $100,000 saves $39,375 in mansion tax alone, plus the $100,000 price reduction itself. Total economic benefit of crossing back below $5M is closer to $145,000.
This is why $4,995,000 is one of the most common asking prices in Manhattan luxury inventory.
If you're shopping near a mansion-tax threshold and want help thinking through the negotiation strategy — or whether to push down to the next bracket or just close the deal — that's a 15-minute call. 646.939.7375.
Part of: NYC Real Estate Tax & Closing Cost Guide: Everything Buyers and Sellers Pay in 2026
Manhattan Closing Costs, Line by Line for Buyers
What a Manhattan buyer pays at closing: about 2 to 3% for a co-op, 3 to 6% for a condo with a mortgage. Mansion tax, recording tax, title, attorney fees, worked at $1M to $5M.
The 421-a Tax Abatement: What It Is and What Happens When It Expires
A buyer's guide to the 421-a exemption: how the benefit is recorded, how it steps down before it ends, and what to ask a seller for.
Tax Implications of Selling Your Manhattan Apartment
Capital gains tax — federal, state, and city rates, the $250K/$500K primary residence exclusion, FIRPTA, 1031, and basis step-up — in plain English.
Frequently asked questions.
Who pays the mansion tax in NYC, the buyer or the seller?
The buyer pays the mansion tax. The payment goes to the New York State Department of Taxation and Finance and is filed on the TP-584 form at closing, alongside the deed for condos and houses or the assignment of stock and lease for co-ops. Your attorney handles the filing.
How much is the mansion tax on a $2 million apartment?
A $2,000,000 purchase falls in the 1.25% bracket, so the mansion tax is 1.25% times $2,000,000, or $25,000. By contrast a $1,999,999 sale sits in the 1.00% bracket and owes $19,999.99. That is why offers often cluster at $1,995,000 instead of $2,000,000.
Why is the mansion tax called a cliff tax?
The brackets are cliffs, not phase-ins, so crossing a threshold by even one dollar applies the higher rate to the entire purchase price. On the $2M line, one extra dollar of price adds about $5,000 of tax. This is why asking prices like $1,995,000 and $4,995,000 are so common in Manhattan.
What are the NYC mansion tax brackets?
Rates run from 1.00% on sales of $1,000,000 to $1,999,999, up to 3.90% on sales of $25,000,000 and above. In between: 1.25% at $2M, 1.50% at $3M, 2.25% at $5M, 3.25% at $10M, 3.50% at $15M, and 3.75% at $20M. The 1.00% is the original statewide tax from 1989, and the higher tiers are the NYC additional tax layered on in 2019, unchanged since.
Does the mansion tax apply to commercial property or transfers between spouses?
No. The tax covers residential real estate of $1,000,000 or more, including co-ops, condos, single-family homes, 2-3 family homes, and some mixed-use properties on a proportional basis. It does not apply to commercial real estate, vacant land, or transfers between spouses. The trigger is the purchase price, not the assessed value.
Can you legally lower the mansion tax by staying under a threshold?
Yes, several legitimate moves exist: negotiate just below the line, separate fixtures or personal property into a documented bill of sale, or buy an unfinished unit where the sponsor prices the buildout separately. What does not work is fake side payments, undisclosed credits, or post-closing rebates, which the Department of Finance audits with steep penalties. Crossing back below $5M, for example, can carry a total economic benefit near $145,000.
