In case you haven’t heard, the New York City mansion tax, which applies to properties sold for $1 million or more, was recently remodeled.

The most important takeaway from this change: If you plan on buying a home in New York in the upcoming months, you would have to close by July 1, 2019 to avoid this tax increase.

Created in 1989, the original mansion tax was a 1% tax on statewide sales of homes of $1 million and above. However, the state’s 2019-2020 budget includes an expansion of the mansion tax starting July 1st, along with a heftier transfer tax, both of which are one-time taxes paid at the point of sale.

The revised tax will climb incrementally for properties with purchase prices of $2 million or more, capping out at 3.90% for properties sold at $25 million or above.

Here is how the new mansion tax is structured:

To give you a better idea of how the new mansion tax will work, take a look at how it will impact some of these luxury apartments for sale in NYC:

310 E 53rd St #28C – Turtle Bay, Manhattan: $4.65M

Agent: Tyler Whitman

Old Taxes: $131,363

  • Mansion Tax: $46,500
  • State Transfer Tax: $18,600
  • City Transfer Tax: $66,263

New Taxes: $166,238

  • Old + New Mansion Tax: $69,750
  • State Transfer Tax: $30,225
  • City Transfer Tax: $66,263

61 E 86th St #64 – Carnegie Hill, Manhattan: $2.295M

Agent: Phillip Salem

Old Taxes: $64,975

  • Mansion Tax: $23,000
  • State Transfer Tax: $9,200
  • City Transfer Tax: $32,775

New Taxes: $70,725

  • Old + New Mansion Tax: $28,750
  • State Transfer Tax: $9,200
  • City Transfer Tax: $32,775

116 Central Park S #9A – Midtown, Manhattan: $2.595M

Agent: Bailey Gladysz

Old Taxes: $73,450

  • Mansion Tax: $26,000
  • State Transfer Tax: $10,400
  • City Transfer Tax: $37,050

New Taxes: $79,950

  • Old + New Mansion Tax: $32,500
  • State Transfer Tax: $10,400
  • City Transfer Tax: $37,050

252 Seventh Ave #PHJ – Chelsea, Manhattan: $3.595M

Agent: Josh Heyer

Old Taxes: $101,700

  • Mansion Tax: $36,000
  • State Transfer Tax: $14,400
  • City Transfer Tax: $51,300

New Taxes: $128,700

  • Old + New Mansion Tax: $54,000
  • State Transfer Tax: $23,400
  • City Transfer Tax: $51,300

To avoid paying these increased taxes, there’s no time like the present to take the leap and purchase your NYC dream home. It’s also important that you work with an experienced New York City real estate agent who can help make the process as efficient as possible.

Want to learn more about how the new mansion tax will impact you? Contact Triplemint for more information!