The NYC Mansion Tax in Queens NY: What Buyers and Sellers Pay in Transfer Taxes

If you are buying or selling a home in Queens for $1 million or more, there is a tax bill waiting at the closing table that surprises a lot of people. It is called the mansion tax, and despite the name, it has nothing to do with mansions. It applies to ordinary co-ops, condos, and one- and two-family houses across Queens NY real estate, from a Forest Hills co-op to a two-family in Richmond Hill, as soon as the price hits seven figures. Add in the city and state transfer taxes, and the numbers get real fast. Here is what buyers and sellers actually pay, and how to plan for it.

Lea este artículo en español: El impuesto a las mansiones y los impuestos de transferencia en Queens NY

What Is the NYC Mansion Tax?

The mansion tax is a one-time New York State tax that the buyer pays at closing on any residential purchase of $1 million or more. It was introduced in 1989 as a flat 1% tax, and in 2019 it was changed into a graduated scale for New York City purchases. It applies to co-ops, condos, and houses alike, and it is reported on the state transfer tax form filed with the deed. Your attorney and title company handle the filing, but the money comes out of your pocket at closing, so it belongs in your budget from the start.

One more thing to know: outside New York City, the mansion tax stays a flat 1% on purchases of $1 million or more. The graduated rates above 1% apply only inside the five boroughs, including Queens.

2026 Mansion Tax Rates in New York City

The rates below are the 2026 rates published by the New York State Department of Taxation and Finance. The key detail is that the rate applies to the entire purchase price, not just the amount above each threshold.

Purchase price	Mansion tax rate	Tax due
$1,000,000 – $1,999,999	1.00%	$10,000 – $19,999
$2,000,000 – $2,999,999	1.25%	$25,000 – $37,499
$3,000,000 – $4,999,999	1.50%	$45,000 – $74,999
$5,000,000 – $9,999,999	2.25%	$112,500 – $224,999
$10,000,000 and above	3.25% – 3.90%	$325,000 and up

On a $1.5 million purchase, the mansion tax is $15,000. On a $3 million purchase, it is $45,000. Most Queens buyers will land in the 1% bracket, but in neighborhoods like Forest Hills Gardens, Douglaston, and parts of Long Island City, the higher brackets are very much in play.

The $1 Million Cliff: Why $1 Makes a $10,000 Difference

Because the tax applies to the whole price, there is a cliff at every threshold. A home that sells for $999,999 owes no mansion tax at all. The same home at $1,000,000 owes $10,000. At $1,999,999 the tax is $19,999.99; at $2,000,000 it jumps to $25,000. That $1 difference in price costs the buyer $5,000 in tax.

For buyers, this is a real negotiating point. If a Queens home is listed just above a threshold, offering just below it can save thousands in tax, though the seller has to agree, and the savings belong to the buyer, not the seller. For sellers, it is worth knowing that a buyer may push hard on price right around $1 million, $2 million, or $3 million for exactly this reason. A good agent will flag the cliff before anyone signs a contract.

Transfer Taxes Sellers Pay at Closing

While the buyer pays the mansion tax, the seller pays the transfer taxes. There are two of them, and both are calculated on the sale price:

• New York City Real Property Transfer Tax (RPTT): 1% on residential sales of $500,000 or less, and 1.425% on residential sales above $500,000. This covers one-, two-, and three-family houses, individual condo units, and co-op apartments.
• New York State transfer tax: 0.4% on most transfers, rising to 0.65% on New York City residential sales of $3 million or more.

Put together, a Queens seller typically pays about 1.825% of the sale price in combined transfer taxes, or about 2.075% on sales of $3 million or more. On a $1 million sale, that is roughly $18,250. These taxes are the seller’s by law, but watch out in new development: sponsor offering plans often shift the transfer taxes to the buyer by contract, so new-condo buyers in Long Island City and Astoria should read the offering plan carefully.

A Worked Example: A $1.5 Million Home in Queens

Take a $1.5 million two-family home in Queens. The buyer pays a mansion tax of $15,000 (1% of $1.5 million) at closing. The seller pays $21,375 in city transfer tax (1.425%) plus $6,000 in state transfer tax (0.4%), for a combined $27,375. Neither side can skip these taxes, and neither is deductible from the other side’s bill. Add attorney fees, title insurance on a condo, and the mortgage recording tax, and it is easy to see why a full closing-cost estimate matters before you make an offer or accept one. If you want the broader picture, see our guide to closing costs in Queens NY.

What Queens Buyers and Sellers Should Do

First, budget for these taxes before you fall in love with a home or a price. Buyers should ask their attorney for a written closing-cost estimate that includes the mansion tax at their exact price, and sellers should ask for a net-proceeds estimate that subtracts the transfer taxes and brokerage commission. Second, mind the thresholds. A price a few thousand dollars either side of $1 million, $2 million, or $3 million can change the tax bill by thousands, so bring it up during negotiations, not after the contract is signed. Third, get advice from your own attorney and tax professional. Tax rates and rules can change, and the right answer depends on your specific transaction, including whether the home is a co-op or a condo and whether it is a new development.

Thinking about buying or selling a home in Queens? Contact Empire Fine Homes at 917.554.0546. We will walk you through the real numbers for your price range, in English or Spanish, so there are no surprises at the closing table.

This article is general information about New York City real estate taxes, not legal or tax advice. Tax rates and rules can change. Confirm the current rates with your attorney or tax professional before making a decision.