Closings glossary
Mansion tax
A New York State tax paid by the buyer on residential conveyances of one million dollars or more, graduated upward through a series of higher price tiers.
Who pays the mansion tax in NYC?
Quick Answer
The full definition
A New York State tax paid by the buyer on residential conveyances of one million dollars or more, graduated upward through a series of higher price tiers.
Where does mansion tax come up in a New York City closing?
A $1,900,000 Brooklyn condo purchase lands in the 1.25 percent mansion tax tier, roughly $23,750, and the buyer brings it to the closing table.
What else should you read before closing?
In the glossary
- Transfer tax (RPTT and NYS)Taxes on the conveyance itself, one City and one State. Rates step up at higher prices, and who pays is set by custom and then confirmed by the con...
- Closing statementThe itemized accounting of every credit, debit and disbursement at a closing. Commercial deals use a HUD-1 or ALTA settlement statement; consumer m...
- Mortgage recording taxThe New York tax due when a mortgage is recorded, computed on the new money secured. A CEMA is the standard structure used to reduce the taxable am...
- Flip taxA transfer fee charged by a co-op or, less often, a condominium when a unit changes hands. It is a creature of the building's governing documents, ...
- Premium (title insurance)The one-time charge for a title policy, computed from the filed New York rate schedule by amount of insurance, plus any endorsement and search-rela...
The statute itself
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