The NYC Mansion Tax Hike Didn't Happen. Here's What Buyers Pay in 2026.

Updated October 1, 2026. We first wrote about this in March, when the increase was still on the table. This version reflects the state budget signed May 28, 2026. As always, this is general information, not legal or tax advice.

Back in March, it looked like buying at the top of the New York market was about to get a lot more expensive. The State Senate and Assembly both put a mansion tax increase into their budget proposals. It would have added 1.425 percentage points to every bracket above $5 million, topping out at 5.325% on purchases of $25 million or more.

It didn't happen. The increase didn't survive the final negotiations with Governor Hochul, and the budget signed on May 28 leaves the mansion tax exactly where it's been since July 2019.

What you'll actually pay

The buyer pays the mansion tax at closing on New York City homes that sell for $1 million or more. Here's the part that surprises people: the rate applies to the whole price, not just the amount over each threshold.

• $1M – $1.99M: 1.00%
• $2M – $2.99M: 1.25%
• $3M – $4.99M: 1.50%
• $5M – $9.99M: 2.25%
• $10M – $14.99M: 3.25%
• $15M – $19.99M: 3.50%
• $20M – $24.99M: 3.75%
• $25M and above: 3.90%

To put the proposal in perspective: on a $7.5 million apartment, the tax stays at $168,750. Under the proposal, it would have been $275,625, about $107,000 more at the closing table. At $25 million, the difference would have been $356,250.

What else was on the table

The mansion tax wasn't the only idea floating around this spring. Lawmakers also looked at a 1% surcharge on all-cash purchases over $1 million, but it was dropped after pushback from the industry and questions about how it would even be administered. At the city level, Mayor Mamdani dropped a proposed property tax hike from the revised budget, leaning on state aid and the new pied-à-terre tax instead.

The one that did pass is the pied-à-terre tax. It's a yearly charge, not a closing cost, on New York City homes that aren't the owner's primary residence, and it started July 1, 2026. For condos and co-ops, it kicks in at $1 million of Department of Finance market value, which is usually far below what the apartment would actually sell for. Our pied-à-terre analysis walks through how it works.

What this means for you

If you're buying, the numbers you ran this spring still hold. There's no deadline to race, so there's no reason to rush a contract or a closing.

The thresholds still deserve your attention, though, because the rate applies to the full price. At $10,000,000, the tax is $325,000. At $9,999,999, it's about $225,000. That's roughly $100,000 for a single dollar. In new development, keep in mind that if you're covering the sponsor's transfer taxes, they get added to the price for mansion tax purposes, which can quietly push you into the next bracket.

If you're selling above $5 million, pricing just under a threshold is still one of the easiest ways to bring more buyers to the table. And if you own a second home here, the tax to keep an eye on now is the pied-à-terre surcharge, which shows up on your property tax bill rather than at closing.

Will it come back?

We wouldn't be surprised. Ideas for taxing high-end real estate come up in Albany most years, and the next round starts with the Governor's budget proposal in January 2027. We'll keep watching and update this page if anything moves.

Sources: 2026-2027 New York State Budget, Assembly Bill A10009-C / Senate Bill S9009-C, signed May 28, 2026. New York Tax Law sections 1402-a and 1402-b (rates in effect since July 1, 2019). Senate and Assembly one-house budget proposals, March 2026.

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