New York Real Estate Transfer Tax Calculator

New York layers two separate transfer taxes on most residential sales. The base real estate transfer tax under Tax Law Section 1402 is a flat 0.4% of consideration, applying at every price point statewide. On top of that, a statewide mansion tax under Section 1402-a adds a flat 1% of the entire purchase price, not just the excess, once consideration reaches $1,000,000, a cliff rather than a marginal bracket. A home selling for $999,999 owes no mansion tax; the identical home at $1,000,000 owes a full $10,000 in mansion tax alone.

New York City layers its own additional progressive mansion tax, reaching up to 3.9% on the highest-value sales, on top of these statewide figures; that city-specific surcharge is not modeled here, which covers only the statewide base tax and statewide cliff. By custom in most of the state, the seller pays the base 0.4% tax and the buyer pays the 1% mansion tax, though the purchase contract can reassign either obligation.

The calculateStateRealEstateTransferTax primitive applies two independent components for New York and sums them into the total tax due.

1. Base Transfer Tax: The sale price is multiplied by the flat statutory rate of 0.4% (Tax Law 1402). This applies at every price point with no threshold.
2. Mansion Tax Cliff Check: The engine compares the full sale price against the $1,000,000 threshold defined in the mansionCliff bracket.
3. Cliff Application: If the sale price is below $1,000,000, no mansion tax is added. If the sale price is at or above $1,000,000, the engine multiplies the entire sale price, not just the excess over $1,000,000, by the 1% mansion tax rate.
4. Summation: taxDue equals the base transfer tax plus the mansion tax (if triggered), computed in exact Decimal arithmetic to avoid rounding drift at high sale prices.
5. Net Proceeds: The sale price minus the combined transfer tax due yields the modeled net proceeds figure.

At the calculator's baseline sale price of $380,000, the property falls well below the $1,000,000 mansion tax threshold: - Sale Price: $380,000.00 - Base Transfer Tax (0.4%): $1,520.00 - Mansion Tax: $0.00 (below the $1,000,000 threshold) - Total Transfer Tax Due: $1,520.00

Now consider the luxury scenario at $1,500,000, which is used specifically to stress-test the cliff: - Sale Price: $1,500,000.00 - Base Transfer Tax (0.4% of $1,500,000): $6,000.00 - Mansion Tax (1% of the full $1,500,000, because the price is over the $1,000,000 threshold): $15,000.00 - Total Transfer Tax Due: $21,000.00

Notice the mansion tax is calculated against the entire $1,500,000, not against the $500,000 that exceeds the $1,000,000 line. That distinction is exactly what makes New York's mansion tax a cliff rather than a marginal bracket, and it is why the jump from just under $1,000,000 to just over it is so financially significant. A seller at $999,000 owes $3,996 in base tax and no mansion tax. The same seller at $1,000,001 owes roughly $4,000 in base tax plus a full $10,000.01 in mansion tax, an increase of more than $10,000 triggered by a single dollar of price difference. These figures are confirmed by the calculator's verified test vectors at $380,000 and $1,500,000.

• New York City's supplemental mansion tax. NYC layers its own progressive surcharge, up to 3.9% on the highest tiers, on top of the statewide rates modeled here; this calculator covers the statewide base and cliff only.
• Commercial and mixed-use property nuances. Different rules can apply to commercial transfers, cooperative apartment stock transfers, and multi-family buildings with more than three units.
• Negotiated allocation of who pays. While the seller customarily pays the base transfer tax and the buyer customarily pays the mansion tax, the purchase contract can shift either obligation.
• Exemptions and credits. Certain transfers, such as those between spouses, into revocable trusts, or by government entities, may be exempt; this calculator assumes a standard arm's-length sale.
• County recording fees and other closing costs. Title insurance, attorney fees (customary in New York), and mortgage recording tax on the buyer's loan are separate line items not included here.

• Treating the mansion tax as marginal. The single most common modeling error is calculating 1% only on the amount above $1,000,000. New York applies the 1% to the full price once the threshold is met.
• Forgetting NYC's additional surcharge. Buyers and sellers in New York City frequently underestimate total tax by applying only the statewide rate and ignoring the city's own progressive mansion tax add-on.
• Assuming a $999,999 sale and a $1,000,000 sale carry nearly the same tax bill. The cliff creates a discontinuity of roughly $10,000 at that exact boundary, which can meaningfully affect negotiation strategy near the threshold.
• Confusing the mortgage recording tax with the transfer tax. New York also imposes a separate mortgage recording tax on the buyer's financing, which is unrelated to the seller-side transfer tax modeled here.
• Assuming the seller always pays everything. Local custom assigns the base transfer tax to the seller and the mansion tax to the buyer, but the contract of sale governs and can differ.

• New York State Department of Taxation and Finance, Real Estate Transfer Tax (Tax Law Article 31, Section 1402) and Real Estate Transfer Tax Return for Mansion Tax (Section 1402-a).