NYC Mansion Tax Calculator
The NYC mansion tax is a flat-rate cliff tax — not a marginal/progressive tax. Once a Manhattan apartment purchase crosses a threshold, the corresponding rate applies to the entire purchase price. Use this calculator to see exactly what you'll owe at any price point, including cliff warnings near each bracket boundary.
How NYC mansion tax works
Q: Who pays the NYC mansion tax? A: The buyer, at closing. The check goes to the NY State Department of Taxation and Finance, filed via the TP-584 form alongside the deed (condos) or the assignment of stock and lease (co-ops). Your real estate attorney handles the filing.
Q: At what price does mansion tax start? A: Exactly $1,000,000. A purchase of $999,999 owes zero. A purchase of $1,000,000 owes 1.00% of the full $1M = $10,000. That $1 difference triggers $10,000 of additional tax — the steepest cliff effect in the entire bracket structure.
Q: Is mansion tax marginal or flat-rate? A: Flat-rate. Once a purchase crosses a threshold, the corresponding rate applies to the entire purchase price, not just the portion above the threshold. This creates real cliff effects at every bracket boundary.
Q: Where are the cliffs? A: $1M, $2M, $3M, $5M, $10M, $15M, $20M, and $25M. The $5M cliff is the most punishing in trophy Manhattan — a buyer at $4,999,999 owes $74,999 in mansion tax, while a buyer at $5,000,000 owes $112,500 (a $37,500 jump for $1 of additional purchase price).
Q: Does this calculator account for transfer taxes? A: No. Mansion tax is paid by the buyer; NYC + NYS transfer taxes (1.825% below $3M, 2.075% above $3M residential) are paid by the seller. For the full closing-cost picture, see the buyer or seller closing-cost calculators.
Q: Why do Manhattan listings cluster at $999K, $1.99M, $2.99M, $4.95M? A: Cliff avoidance. Sellers price just under each threshold to keep the buyer pool wide. Smart buyers offer either under the cliff or far enough above that the higher tax is justified by the apartment.
Q: Are there exemptions? A: Mansion tax applies only to residential property — not commercial real estate, vacant land, or transfers between spouses.
Estimates are based on typical NYC resale transaction structure and 2026 tax rates. Broker commission is negotiable. Co-op flip tax defaults to 2% but varies 0–3% by building. Does not include federal or state capital gains tax or non-resident estimated income tax payment. Not tax or legal advice.
