“Tax Law Article 31 imposes a real estate transfer tax on each
conveyance of real property, or interest in real property, when the consideration exceeds $500. The tax is computed at a rate of two dollars for each $500 of consideration, or for any fractional part of $500. An additional tax is imposed on each conveyance of real property or interest in real property used in whole or in part as a personal residence when the consideration for the entire conveyance is $1 million or more. The additional tax is computed at a rate of one percent of the consideration, or part of the consideration, attributable to the residential real property. This publication answers frequently asked questions related to the
additional tax, often referred to as the mansion tax.
The information presented in this publication does not represent a change in any policies or procedures, but provides guidance for the relevant provisions of Tax Law Article 31 and Part 575 of the Real Estate Transfer Tax Regulations (20 NYCRR). Unless otherwise noted in the following examples, the real estate transfer tax applies to each conveyance whether or not the additional tax is due. Although accurate, the information in this publication has been simplified; if there is any discrepancy between this publication and the Tax Law or regulations, the Tax Law and regulations will govern.”
Q: What is the additional tax?
A: In addition to the real estate transfer tax imposed by section 1402 of the Tax Law on the conveyance of real property or interest in real property, Tax Law section 1402-a imposes an additional tax on each conveyance of residential real property or interest in residential real property when the consideration for the entire conveyance is $1 million or more.
Q: What is the rate of the additional tax?
A: The rate of the additional tax is one percent
Link to complete FAQ is here: https://blocksandlots.com/wp-content/uploads/2019/12/FAQs-Regarding-the-Additional-Tax-on-Transfers-of-Residential-Real-Property-for-1-Million-or-More-Pub-577.pdf
