Buying in Queens at the seven- or eight-figure level comes with more than the purchase price. You also face a set of NYC and New York State transfer taxes that can materially change your cash needed at closing. If you are evaluating a condo, co-op, or 1–3 family home anywhere in Queens, you should understand these taxes before you negotiate. In this guide, you will see how the mansion tax works, what city and state transfer taxes add up to, and simple examples you can use to budget with confidence. Let’s dive in.
What the mansion tax is
The New York State mansion tax is a one-time buyer surcharge on residential purchases of $1,000,000 or more. It is calculated at 1.00% of the entire purchase price and is collected at closing. You should expect to see it as a buyer charge on your closing statement. It applies across NYC, including Queens, and typically applies to condos, co-ops, and 1–3 family homes when the consideration meets the threshold.
The three transfer taxes in NYC
For residential deals above $1,000,000, three taxes commonly appear at closing. Knowing each one helps you set a realistic cash budget.
NYS mansion tax (buyer)
- One-time surcharge of 1.00% of the purchase price on $1,000,000+ residential purchases.
- Calculated on the full price and paid at closing.
NYS real estate transfer tax (state RETT)
- State transfer tax equal to $2 per $500 of consideration, which is 0.40% of the price.
- Often borne by the seller in NYC practice, but it affects pricing and net proceeds. For modeling your true acquisition cost, include it as a relevant transaction cost.
NYC real property transfer tax (city RPTT)
- City transfer tax for residential deals above $500,000 equal to 1.425% of the price.
- Typically paid by the buyer at closing.
A quick baseline you can trust
When you combine the mansion tax (1.00%), NYS RETT (0.40%), and NYC RPTT (1.425%), you get a baseline of 2.825% of the purchase price for most NYC residential closings above $1,000,000. This rule of thumb applies citywide, including Queens, for residences that exceed the thresholds. It is a simple way to approximate mandatory transfer taxes before you add other closing costs.
- Baseline combined rate: 2.825% of purchase price.
- Use this percentage to pressure-test offers and plan cash at closing.
- Always confirm final rates and who pays each tax in your contract and with counsel.
Worked examples for Queens buyers
These examples include only the three mandatory transfer taxes noted above. They exclude mortgage recording tax, title insurance, attorney fees, reserves, lender charges, and any withholding. Use them as a starting point for modeling.
$2,000,000 purchase
- Mansion tax (1.00%): $20,000
- NYS RETT (0.40%): $8,000
- NYC RPTT (1.425%): $28,500
- Combined mandatory transfer taxes: $56,500 (2.825%)
$3,000,000 purchase
- Mansion tax: $30,000
- NYS RETT: $12,000
- NYC RPTT: $42,750
- Combined: $84,750 (2.825%)
$5,000,000 purchase
- Mansion tax: $50,000
- NYS RETT: $20,000
- NYC RPTT: $71,250
- Combined: $141,250 (2.825%)
$10,000,000 purchase
- Mansion tax: $100,000
- NYS RETT: $40,000
- NYC RPTT: $142,500
- Combined: $282,500 (2.825%)
$20,000,000 purchase
- Mansion tax: $200,000
- NYS RETT: $80,000
- NYC RPTT: $285,000
- Combined: $565,000 (2.825%)
Other closing costs to budget
Beyond transfer taxes, several line items can add up quickly. Build a conservative budget so you are not surprised at closing.
- Attorney fees. Buyer’s counsel typically charges a flat fee or hourly; budget several thousand dollars, depending on complexity.
- Title insurance. Owner’s and lender’s policies are priced from regulated schedules and can range from a few thousand to tens of thousands at higher price points.
- Recording and clerk fees. Usually modest, often in the hundreds.
- Bank and lender fees. If you finance, expect lender charges and potential points.
- Escrows and reserves. Co-ops and condos often require prepayments of common charges or reserves at closing.
- Inspections, engineering, and surveys. Order what fits the asset type and your risk tolerance.
- Broker commission. In NYC practice, the seller usually pays the brokerage commission, but confirm with your attorney for your deal.
- Building or sponsor fees. Some developer or building transactions include transfer fees or flip taxes on sale by a sponsor.
Financing? Plan for mortgage recording tax
If you take a mortgage in NYC, the mortgage recording tax is a separate cost on the loan amount. For large mortgages, this can be a significant expense. Rates vary by loan size and type and differ from the rest of New York State. Align with your lender and attorney early to model the recording tax and any lender-required reserves so you have the right cash ready at closing.
International buyer considerations
International buyers should plan for timelines and potential withholding. These items can impact your liquidity and the sequence of funds at closing.
- FIRPTA. If a seller is a foreign person, federal law may require the buyer to withhold a percentage of the amount realized unless a reduced withholding certificate is obtained. Work with tax counsel early.
- NYS nonresident withholding. New York State requires withholding for nonresident sellers based on estimated state tax on gain; buyers may need to collect at closing.
- Identification and banking. You may need an ITIN and U.S. banking setup for filings, lender due diligence, and title insurance.
- Practical tip. Engage U.S. tax counsel at the offer stage to model any withholding and the time needed to secure reduced withholding certificates.
Co-ops, condos, and 1–3 family homes in Queens
The mansion tax and state transfer tax generally apply across property types when economic consideration meets the thresholds. That includes co-ops, condominiums, and 1–3 family homes in Queens. For co-ops, the legal instrument is a share transfer and proprietary lease, and mechanics can differ from deeded condos and houses. Confirm specific tax treatment and who pays each item with your attorney for co-op transactions.
Model your true buying power
Use three simple scenarios to frame your cash planning. This helps you compare offers, structure negotiations, and avoid last-minute surprises.
Scenario A: All-cash purchase
Include the 2.825% baseline for transfer taxes, attorney fees, title insurance, recording fees, building dues or escrow prepayments, and any sponsor or building-specific fees.Scenario B: Financed purchase
Include everything in Scenario A plus the mortgage recording tax, lender fees, lender’s title policy, and any interest or tax escrows your bank requires.Scenario C: Purchase from a foreign seller
Layer in potential FIRPTA withholding and NYS nonresident withholding and the timeline to obtain reduced withholding certificates if applicable.
Always carry a contingency for unexpected items like repair escrows or special assessments.
Timing and cash at closing
Expect the mansion tax, NYS RETT, and NYC RPTT to be calculated and remitted at closing. Your attorney or title company will collect funds for these. If there are federal or state withholding requirements, additional sums may be escrowed, which can delay the release of funds. If you are financing, the mortgage recording tax is paid when the mortgage is recorded, so plan extra liquidity for that as well.
Next steps
If you are considering a Queens purchase above $1,000,000, start by applying the 2.825% baseline to your target price, then add the financing and building-specific costs that fit your scenario. Align early with your attorney, lender, and tax advisor to confirm current rates and mechanics and to plan your timeline.
Ready to pressure-test your numbers and align your offer with your cash plan? Unknown Company can help you model scenarios, coordinate advisors, and negotiate with confidence. Request a private, investment-grade consultation.
FAQs
Is NYC’s mansion tax the same as New York State’s?
- The term mansion tax refers to the New York State 1% surcharge on $1,000,000+ residential purchases; NYC does not have a separate mansion tax, but it does impose the RPTT.
Do both the mansion tax and city transfer tax apply in Queens?
- Yes, for qualifying residential purchases in Queens, both the NYS mansion tax and the NYC RPTT apply, along with the NYS RETT.
Who typically pays each transfer tax in NYC residential deals?
- The mansion tax and the NYC RPTT are typically buyer charges; the NYS RETT is often borne by the seller, though it can affect pricing and should be considered in your modeling.
Are there higher mansion tax brackets for ultra-luxury sales?
- Proposals have circulated in some sessions to create progressive brackets, but the operative rule in practice has been the 1% surcharge; confirm current law with your attorney.
Does the mansion tax apply to co-ops and condos in Queens?
- Generally yes, the mansion tax and state transfer tax apply to residential conveyances including co-ops and condos when the $1,000,000 threshold is met; confirm specifics with counsel for co-op share transfers.
