What taxes does a buyer pay when buying a Manhattan apartment?

A buyer in Manhattan pays the mansion tax on any home priced at $1 million or more, and pays an extra city supplemental tax once the price reaches $2 million. A buyer who finances a condo or townhouse also pays the mortgage recording tax on the loan.

How does the mansion tax work at each price level?

The mansion tax stays at 1% at every price from $1 million up, and the city supplemental tax is added on top in steps starting at $2 million.

What transfer taxes does a seller pay in Manhattan?

A Manhattan seller normally pays two transfer taxes: the New York City Real Property Transfer Tax and the New York State transfer tax.

Do co-op and condo buyers pay the same closing costs?

No. Co-op and condo buyers pay the same mansion tax, but co-op buyers do not pay the mortgage recording tax.

Did the 2026 state budget change any of these taxes?

The 2026 state budget left out the proposed tax on all-cash home purchases, and the state and city still publish a 1% mansion tax and a 1.425% city transfer tax on sales over $500,000. What the budget did add is a pied-à-terre surcharge on certain second homes valued above $5 million, effective July 1, 2026.

What other closing costs should buyers and sellers plan for?

Beyond taxes, buyers and sellers each pay their own attorney, and a buyer who finances pays the lender's fees and the appraisal.

What do I tell my clients about closing costs and transfer taxes?

I tell my clients to price the taxes before they price the offer. Closing costs are not a surprise if you build them into the number on day one.

Blog | Real Estate Articles From Michael J. Franco Team

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