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(New) New York Real Estate Transfer Tax and Mansion Tax


The 2020 New York State Budget Bill, effective July 1, 2019, which will affect all conveyances occurring on or after July 1, 2019, increases both the New York State Transfer Tax and the Mansion tax for all real property located in New York City, as well as other cities in New York State with a population of 1 Million of more (of which there are none). Prior to this new law, the tax rate was $2.00 per $500.00 of consideration, on all real property. Now, there will be three tranches, based on property type, and sale price, as follows:

Consideration Transfer Tax Transfer Tax

(Residential) (Non-Residential)

Under $2,000,000.00 $2.00 per $500 (0.4%) $2.00 per $500(0.4%)

$2 Mil -$2,999,000.00 $2.00 per $500 (0.4%) $3.25 per $500(0.65%)

$3,000,000.00 or More $3.25 per $500 (0.65%) $3.25 per $500(0.65%)

Residential property for the purposes of transfer tax, including an interest therein, is defined as 1, 2, or 3 family house, an individual condominium union or a cooperative apartment that is or may be used in whole or in part as a personal residence. For instance, on the purchase of a residential property of $7,000,000.00, the transfer tax paid by seller would have been $28,000.00. Now, under the 2020 Budget, it will be increased to $45,500.00.

In addition, prior to the 2020 budget, the New York State Mansion Tax (Residential Property only) was a 1% tax on the purchase of all residential real property for a sale price in excess of $1,000,000.00 in consideration (Paid by Buyer). In the new 2020 budget, this flat tax will be replaced with eight (8) tranches, as follows:

Consideration New York State Mansion Tax

Under $1,000,000.00 No Tax (Same)

$1,000,000.00-$1,999,999.99 1% (Same)

$2,000,000.00-$2,999,999.99 1.25%

$3,000,000.00-$4,999,999.99 1.50%

$5,000,000.00-$9,999,999.99 2.25%

$10,000,000.00-$14,999,999.99 3.25%

$15,000,000.00-$19,999,999.99 3.50%

$20,000,000.00-$24,999,999.99 3.75%

$25,000,000.00 or More 3.90%

Residential property for the purposes of the Mansion tax, including an interest therein, includes 1, 2, or 3 family house, an individual condominium union or cooperative apartment that is or may be used in whole or in part as a personal residence. For an example, as a Buyer of a $7,000,000.00 residential property, prior to the existing budget you would have had to pay a mansion tax of $70,000.00. Now under the 2020 Budget, this tax obligation will be increased to $157,500.00.

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