Welcome to NYC’s 2019 mansion tax.
The original version of this tax was created in 1989 by Gov. Mario Cuomo. It was a flat 1% statewide tax on homes that sold for $1 million or more.
The 2019 mansion tax was signed in to law by Gov. Andrew Cuomo, and it applies, according to the New York State tax code, to “cities having a population of one million or more.” Naturally, NYC is the state’s only city with a population greater than one million, so this is a NYC-specific tax. It went into effect on July 1, 2019.
Besides imposing new tax rates, what makes the 2019 mansion tax different from its predecessor is that it is a progressive tax. The higher the sale price, the higher the tax rate.
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Who Pays the Mansion Tax?
The tax is paid by the buyer and is due no later than 15 days after closing. However, if the buyer does not pay, the seller is also on the hook.
What Types of Properties Does this Tax Apply to?
The tax applies to all “residential real property“, which means condos, co-ops, and one-, two-, or three-family houses.
Are There Any Exemptions?
There are a number of exempt parties, such as governmental bodies. Sales that are completed as part of a federal bankruptcy are also exempt, as are sales completed in tax-free areas and through other special circumstances, too.
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