How Much is the NYC Mansion Tax in 2021?

How Much is the NYC Mansion Tax in 2021? Tax rates and FAQ: https://www.hauseit.com/nyc-mansion-tax/

NYC Mansion Tax Calculator: https://www.hauseit.com/nyc-mansion-tax-calculator/

Reduce Your Buyer Closing Costs in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/

We’ll demystify this topic in the following video. I’m Nick at Hauseit. Check out our website https://hauseit.com to learn how to save money if you’re buying or selling real estate here in New York City. So let’s get started!

You’re probably watching this video because you’ve recently discovered how absurdly high buyer closing costs are in NYC. Buyer closing costs range anywhere from 1.5% to 6%. In general, buyer closing costs are the highest for condos, and specifically new development condos. Co-ops have the lowest buyer closing costs, around 1.5% on average, but they typically have highest seller closing costs.

Of course, the Mansion Tax is one of the largest individual components of buyer closing costs, specifically for purchase of $1 million or more.

The good news is that you can significantly reduce your closing costs and cover your Mansion Tax by request a buyer agent commission rebate. At Hauseit, we call this our Buyer Closing Credit Program. To learn more, check out our website, hauseit.com, send us an email to team@hauseit.com or give us at a call at (888) 494-8258. We’ve saved New Yorkers millions on closing costs since we were founded in 2014, and we’d love to help you too.

So back to our original question: How Much is the NYC Mansion Tax in 2021?

The Mansion Tax in NYC was originally imposed in 1989 as a fixed 1% Transfer Tax on purchases of $1 million or more. While the tax has never been adjusted for inflation, the Mansion Tax itself was overhauled in April 2020 as part of the 2020 New York State Budget.

The Mansion Tax in 2021, as of this filming, is unchanged since its recent overhaul in 2020.

New York City Mansion Tax Rates are as follows:

1% for purchases of $1,000,000 to $1,999,999

1.25% for purchases of $2,000,000 to $2,999,999

1.5% for purchases of $3,000,000 to $4,999,999

There are 5 additional tax brackets for purchase of $5,000,000 and above, with the highest rate of 3.9% applying to purchase of $25,000 or more.

For an exact calculation of the Mansion Tax on a potential purchase, check out Hauseit’s free and interactive NYC Mansion Tax Calculator, which is available at https://www.hauseit.com/nyc-mansion-tax-calculator/

We also have an in-depth article on the Mansion Tax which is accessible at https://www.hauseit.com/nyc-mansion-tax/

Before we let you go, here’s a bit more information about the Mansion Tax, in case you’re curious:

The Mansion Tax itself applies to all residential real property or interest in residential real property which includes condos, co-ops as well as one to three family houses.

The New York Mansion Tax is typically paid by the purchaser in a transaction.

In rare instances specific to new developments, a particularly motivated developer may agree to pay the Mansion Tax on behalf of the purchaser.

If you’re thinking about buying a new development condo in NYC, please check out our dedicated video and blog post on what closing costs are negotiable for new developments.

NYC Buyer Closing Cost Calculator: https://www.hauseit.com/closing-cost-calculator-for-buyer-nyc/

New Development Buyer Closing Cost Calculator: https://www.hauseit.com/new-development-closing-cost-calculator-nyc/

So what do you think about closing costs in NYC? How do they impact your budget and general perspective on buying real estate? Do you think the Mansion Tax is reasonable, too low, or too high? Does $1 million really buy a mansion in NYC? Let us know by leaving a comment below.

Thanks again for watching. I’m Nick at Hauseit, and we’ll see you on the next video.
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Hauseit LLC, Licensed Real Estate Broker
Tel: (888) 494-8258 | https://www.hauseit.com
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