Shopping for a Tribeca loft or new-development condo? Before you fall in love with a view, make sure your budget covers New York’s “mansion tax.” It is a real line item that can change your cash to close by tens or hundreds of thousands of dollars. In this guide, you will learn exactly what the tax is, how rates work, when you pay it, and how it shows up at a typical Tribeca closing. You will also see clear examples at common price points so you can plan with confidence. Let’s dive in.
What the NYC mansion tax is
The mansion tax is an additional New York State tax on residential real estate purchases at or above $1,000,000. It is separate from New York State and City transfer taxes and separate from title, mortgage, and recording costs. The tax is based on the consideration in your contract of sale, which is usually the purchase price. In most NYC transactions, it is a buyer-paid closing cost.
The threshold matters. If your price is below $1,000,000, the mansion tax does not apply. Once your price meets or exceeds $1,000,000, the applicable rate is determined by your price bracket.
Current rates and brackets
New York uses a tiered schedule for the mansion tax. The rate applies to the full purchase price, not just the amount above the bracket threshold.
- $1,000,000 to $1,999,999 — 1.00%
- $2,000,000 to $2,999,999 — 1.25%
- $3,000,000 to $4,999,999 — 1.50%
- $5,000,000 to $9,999,999 — 2.25%
- $10,000,000 to $14,999,999 — 3.25%
- $15,000,000 to $19,999,999 — 3.50%
- $20,000,000 to $24,999,999 — 3.75%
- $25,000,000 and up — 3.90%
How to read this: if you buy at $5,000,000, the 2.25% rate applies to the entire $5,000,000. It is not a marginal scale.
When you pay at closing
You pay the mansion tax at closing. The title company or closing attorney typically collects it as a separate line item on your closing statement and remits it per State rules. If you are financing, your lender will require that you bring the mansion tax and other closing costs to the table in liquid funds. Lenders generally do not include this tax in your mortgage proceeds, so plan to wire certified funds.
If you negotiate a seller credit or concession, the mansion tax is still based on the consideration in the executed contract. A change in the contract price can change the tax, but post-contract credits that do not reduce the price in the documents usually do not.
Condos, co-ops, new development
Tribeca offers a mix of classic loft conversions, full-service condos, and select co-ops. The mansion tax applies across these property types when the price meets the threshold.
- Condos and new development: Straightforward application. The tax is calculated on the final purchase price and paid at closing. Sponsor contracts may have larger deposits and specific procedures, but the tax is still collected when you close.
- Co-ops: Transfers of co-op shares and the proprietary lease can also be subject to the mansion tax if the consideration is at or above $1,000,000. The structure of co-op documents can affect timing and billing details, so your attorney and title team will confirm mechanics.
- Townhouses and loft buildings: When purchased as residential property and priced at or above $1,000,000, the tax applies in the same tiered manner.
Negotiation note: Market practice places the mansion tax on the buyer. A seller can agree to cover some or all of it as part of your deal, but that must be clearly written into the contract.
Tribeca examples by price
Below are illustrative mansion tax amounts at common Tribeca price points. These examples calculate only the mansion tax, rounded to the nearest dollar.
Example A: $2,000,000 loft
- Applicable rate: 1.25%
- Mansion tax: $2,000,000 × 1.25% = $25,000
Example B: $5,000,000 larger condo
- Applicable rate: 2.25%
- Mansion tax: $5,000,000 × 2.25% = $112,500
Example C: $10,000,000 new-development floor-through
- Applicable rate: 3.25%
- Mansion tax: $10,000,000 × 3.25% = $325,000
Example D: $20,000,000 trophy penthouse
- Applicable rate: 3.75%
- Mansion tax: $20,000,000 × 3.75% = $750,000
Example E: $30,000,000 ultra-prime residence
- Applicable rate: 3.90%
- Mansion tax: $30,000,000 × 3.90% = $1,170,000
Two key takeaways:
- Crossing into a higher bracket changes the rate for the full price.
- These dollars are due at closing, so you need liquid funds ready.
Model your cash to close
The mansion tax is one piece of your total acquisition cost. Build a simple model so you know your required cash at each step.
Include these categories besides the purchase price and mansion tax:
- Mortgage costs: lender application, appraisal, underwriting, points if any
- Mortgage recording tax: if you finance for a condo or townhouse
- State and City transfer taxes: separate from the mansion tax and shown on closing statements
- Title insurance and search fees: common for condos and townhouses
- Recording and filing fees: deeds and condo documents
- Attorney fees: buyer’s counsel
- Building and sponsor items: common charges adjustments, move-in fees, sponsor or amenity fees
- Co-op specifics: flip tax if applicable per building policy and contract, legal review fees
- Prorations and escrows: property tax and maintenance adjustments
- Inspections and reports: as needed for lofts, conversions, or townhouses
- Moving and insurance costs
Practical tips:
- Have the full mansion tax amount in liquid funds before closing. Title and attorney teams will require certified or wired funds.
- Ask for a preliminary net sheet early in negotiations that lists the expected mansion tax and major buyer-side costs. This helps align your offer with true cash to close.
- Confirm with your lender what, if anything, can be financed. In many cases, the mansion tax is paid from your own funds and not rolled into the loan.
- For co-ops, confirm how the share and proprietary lease transfer is handled and whether any building-specific fees apply.
Strategy and negotiation tips
- Price-targeting: If you are near a bracket edge, know that even a small change in price can move you to a higher rate on the full price. Decide if the home’s value justifies that jump.
- Seller participation: While buyer-paid is standard, a seller may agree to cover some portion of the mansion tax. Discuss this with your agent before you submit terms so it is reflected in the offer.
- Sponsor deals: New-development timelines, deposits, and closing procedures can vary by building. Make sure your counsel reviews the contract and any sponsor fee schedules early.
What to do next
- Before contract: request an illustrative net sheet, speak with your lender, and confirm your available funds and wire timing for closing.
- After contract, before closing: have your attorney review tax mechanics, coordinate with the title company on remittance, and confirm mortgage recording tax exposure if financing.
- At closing: expect the mansion tax to appear as its own line item and be paid from your funds.
If you want a property-specific cash-to-close model for a Tribeca home, including the correct mansion tax line and typical buyer costs, schedule a private consult. You will leave with a clear net sheet, lender guidance, and a confident budget for your search. Start the conversation with Jessica Markowski.
FAQs
Does the NYC mansion tax apply to Tribeca condos and co-ops?
- Yes. For residential purchases at or above $1,000,000, the mansion tax applies to condos and co-op share transfers, with collection handled at closing.
When is the NYC mansion tax due for a Tribeca purchase?
- It is paid at closing. The title company or closing attorney collects it as a separate line item and remits it per State requirements.
Is the NYC mansion tax calculated on the full price or just above the threshold?
- It applies to the full purchase price based on the bracket your price falls into. It is not a marginal tax.
Can the seller pay the NYC mansion tax in a Tribeca deal?
- The buyer typically pays it, but you can negotiate for the seller to cover some or all of it if agreed to in the contract.
Does a lender include the mansion tax in the mortgage for Tribeca buyers?
- Generally no. Lenders require you to bring the mansion tax and other closing costs in liquid funds. Confirm details with your lender.
Do renovations or post-closing work trigger the NYC mansion tax?
- No. The tax is based on the consideration in the sale. Post-closing renovations do not trigger the mansion tax.
How do sponsor deposits affect the mansion tax on new-development condos?
- Sponsor deposits are separate. The mansion tax is generally collected at closing based on the final purchase price, per your contract and State rules.
