The New ‘Mansion Tax’: What Does It Mean for NYC Homeowners? The Other Alternative Would've Been a Pied-a-Terre Tax

(iStock.com)

Taxes from the sales of multimillion-dollar homes are going up, thanks to the folks up in Albany.

As part of New York State’s 2020 budget, a change has been enacted to New York State’s ‘mansion tax.” Originally enacted in 1989 by then-Gov. Mario Cuomo, the ‘mansion tax’ was a tax on statewide sales of homes of $1 million or more. Its original intent was to bolster New York State’s budget during an economic recession.

The revision on the tax for fiscal year 2020, which was approved by the State Legislature and Gov. Andrew Cuomo, will apply only to sales of $1 million and over in New York City. Proceeds from it will be used to fund improvements for the city’s perpetually deteriorating subway system.

Let’s look at how the ’mansion tax’ works.

The Changes

While the statewide tax will remain at 1 percent, the tax on New York City property will increase with purchases of $2 million or more, and rise to a total of 3.9 percent on transactions of $25 million and over.

Read More...

Related Articles

Support for Pied-à-Terre Tax Grows

Albany Lawmakers Push for Taxing Second Homes

Momentum Behind Pied-à-Terre Tax Stalls

NYC Real Estate Industry Lobbies Against Tax on Luxury Second Homes

Northern Manhattan Residential Sales Hit a Blip

Elliman Reveals Latest 2Q Numbers for the Area

9 Manhattan Luxury Residential Properties Signed Into Contract Last Week

It Was the First Time Since December That the Number of Sales Was Below 10

REBNY: Average Sales Prices for Manhattan, Brooklyn, and Queens Co-ops Set Records in 3Q 2017

Queens Condo Average Sales Price Also Go Strong in Same Quarter

Report: 3-Week Luxury Sales Streak Peters Out

Only 15 $4M+ Properties Signed into Contract Last Week