Real Estate Mathematics
A 1% New York State tax on residential property sales of $1,000,000 or more, paid by the buyer.
The NY mansion tax applies to the conveyance of any residential property when the consideration is $1,000,000 or more. The basic state tax is 1% of the FULL purchase price (not just the amount above $1M). It is paid by the BUYER at closing. NYC adds a progressive surcharge for sales over $2M, with rates climbing in tiers up to 3.9% for sales of $25M and above. The mansion tax is collected through the TP-584 transfer tax return at recording.
Exam Tip
BUYER pays. Threshold is $1M residential. Applies to the FULL price, not just the amount over $1M. Don't confuse with the seller-paid transfer tax.
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