Skip to content
ClosingCodeClosingCode
ENES

New York · Tax Law §§1402, 1402-aNew York transfer tax and the 1% mansion tax

New York State taxes each conveyance of real property over $500 at $2 per $500 of consideration (Tax Law §1402). For one-to-three family houses and condo units, and for deals under $500,000, liens that stay on the property are excluded. On top of that, residential conveyances of $1 million or more carry the 1% “mansion tax”, which the buyer pays (§1402-a); if the buyer does not pay or is exempt, the seller must. In New York City an extra $1.25 per $500 applies to homes of $3 million or more and other property of $2 million or more.

The rules

  1. Base tax (§1402(a)(1))

    $2 for each $500 or part of it, on conveyances over $500 → $1,600 on a $400,000 sale.

  2. Mansion tax (§1402-a)

    1% of the consideration for residential property – a house of one to three families, a condo or co-op unit – when the whole conveyance is $1 million or more.

  3. Who pays the mansion tax (§1402-a(b))

    The grantee. If the grantee fails to pay or is exempt, the grantor must, and both are jointly and severally liable.

  4. New York City (§1402(a)(2))

    An extra $1.25 per $500 in cities of one million or more: residential at $3 million or more, other property at $2 million or more.

What the TC checks

  • Price against the $1 million mansion-tax line and the NYC $2/$3 million lines.
  • Mansion tax on the buyer's side of the closing statement.
  • Lien exclusion applied only where §1402 allows it.

Questions about the New York mansion tax

When does the New York mansion tax apply?

On residential conveyances where the consideration for the whole conveyance is $1 million or more (Tax Law §1402-a(a)).

Who pays the mansion tax in New York?

The buyer (grantee). If the buyer does not pay or is exempt, the seller must pay, and both are liable (§1402-a(b)).

What is the New York State transfer tax rate?

$2 for each $500 of consideration, on conveyances over $500 (§1402(a)(1)).

Related guides

Add the transfer and mansion tax check to the closing statement review as a task with an owner and due date in ClosingCode.

Start free trial

Source: New York Tax Law §§1402 and 1402-a (nysenate.gov, read October 25, 2026).

General information, not legal or tax advice. ClosingCode is software; it is not a law firm or brokerage.