Mansion Tax For Upper West Side Buyers Explained

Shopping for a home on the Upper West Side and seeing your closing costs jump once your budget crosses $1 million? You are not alone. The New York “mansion tax” is a small percentage, but at UWS price points it becomes a meaningful line item that stacks with other city taxes and fees. In this guide, you will learn what the tax is, when it applies, what you will pay at typical neighborhood prices, and how to plan your cash to close. Let’s dive in.

What the mansion tax is

New York State’s mansion tax is a 1.0% surtax on residential purchases when the contract price is $1,000,000 or more. It is calculated on the full purchase price and is typically paid by the buyer at closing. This applies to both condos and co‑ops when the consideration meets the threshold. Always confirm with your attorney and lender how it will appear on your closing statement.

How it fits with other NYC transfer taxes

Two other transfer taxes commonly show up in NYC closings:

• NYC Real Property Transfer Tax (RPTT): For residential purchases over $500,000, the rate is 1.425% of the price. This is typically a buyer cost on condo and townhouse purchases. Practices can vary, so confirm in your contract.
• New York State transfer tax: Generally 0.4% of the price. This is usually a seller cost in practice, but it can be negotiated by the parties.

The key takeaway: on the UWS, buyers often pay both the mansion tax (if at or above $1 million) and NYC RPTT. The state transfer tax is commonly a seller item, yet contracts can allocate costs differently.

When it applies on the Upper West Side

The UWS includes a wide mix of co‑ops, condos, and townhouses. Many transactions clear $1 million, so the mansion tax is common. The threshold is based on the contract price. If your agreed price is $999,999, the tax does not apply; if it is $1,000,000, the 1% tax applies. Co‑op share transfers can have different paperwork and allocation practices, so verify the exact treatment with your closing attorney.

What you will pay at UWS price points

Below are rounded examples that show only the transfer taxes. They do not include lender fees, attorney, appraisal, title, mortgage recording tax, prepaids, or building fees.

Notes:

• NYC RPTT applies above $500,000 even when you are below the mansion tax threshold.
• The New York State transfer tax of 0.4% is typically a seller cost and is not included in the buyer totals above.

Budgeting your cash to close

Plan your cash early so nothing surprises you near the finish line. Common components include:

• Down payment based on loan terms. Many buyers use 20% as a benchmark, and some co‑op boards may require more.
• Mansion tax: 1.0% if your price is $1,000,000 or more.
• NYC RPTT: 1.425% when your price is over $500,000.
• NYS transfer tax: typically a seller item at 0.4%, but confirm your contract.
• Mortgage recording tax if you finance. Rates and rules vary by mortgage amount in NYC, so rely on your lender’s estimate.
• Lender fees and points, credit report, underwriting, and related costs.
• Title search and title insurance for condos and townhouses. Co‑ops are different since shares are transferred.
• Attorney fees.
• Appraisal, inspection, and any required surveys.
• Prepaids and escrows: property tax and common charge or maintenance prorations, homeowner’s insurance, and initial mortgage interest.
• Co‑op specific fees: possible flip taxes, board application fees, and move‑in deposits per building bylaws.
• A contingency buffer of 1% to 2% for unexpected items or building requirements.

Example cash‑to‑close snapshot

Scenario: $1,250,000 UWS condo, 20% down, buyer pays NYC RPTT and mansion tax.

• Down payment (20%): $250,000
• Mansion tax (1%): $12,500
• NYC RPTT (1.425%): $17,812.50
• Estimated other buyer closing costs and prepaids: 2% of price, about $25,000
• Estimated visible cash to close before mortgage recording tax or lender escrows: about $305,312.50

If you finance, add the mortgage recording tax and any lender‑required escrows. These can range from several thousand up to 1% to 2% of the mortgage amount depending on the loan.

Co‑op considerations on the UWS

For co‑ops, the asset you buy is shares plus a proprietary lease, not a deed. Transfer and recording practices can differ from condos. Many co‑ops have building‑specific transfer policies, such as flip taxes and application fees. Review the building’s offering plan and bylaws with your attorney and confirm how any flip tax is allocated in your contract.

Avoid surprises: questions to ask early

• Who is paying the New York State transfer tax in this deal?
• Does the building have a flip tax, and who pays it under the contract?
• Are there any co‑op or condo transfer fees the buyer is expected to cover?
• Can we get the seller’s expected closing statement and a preliminary buyer cost worksheet?
• When will the lender issue a Loan Estimate, and what does it show for mortgage recording tax and escrows?
• What are the building’s move‑in fees, deposits, and timing requirements?

Work with a trusted advisor

You deserve a calm, data‑driven plan for closing costs, especially when small percentages equal large dollar amounts. With 15+ years of Manhattan experience across condos, co‑ops, and townhouses, Charlar provides discreet, end‑to‑end guidance from offer through board approval and funding. If you want precise budgeting, proactive coordination with your attorney and lender, and access to both public and private inventory on the Upper West Side, let’s talk.

Ready to refine your numbers and your search strategy on the UWS? Connect with Charlar Acar to review your scenario and Get Access To Our Private Listings.

FAQs

What is the NYC mansion tax and who pays it?

• It is a 1.0% New York State surtax on residential purchases of $1,000,000 or more, and it is typically paid by the buyer at closing.

Does the mansion tax apply to Upper West Side co‑ops?

• Yes, it generally applies to co‑ops when the contract price is $1,000,000 or more; confirm your building’s specifics and closing statement with your attorney.

How much do buyer transfer taxes total on a $1.25M purchase?

• About $30,312.50 for the buyer portion, combining the 1% mansion tax and 1.425% NYC RPTT; the state 0.4% transfer tax is commonly a seller item.

Is the NYC Real Property Transfer Tax a buyer cost?

• It is typically shown as a buyer closing cost for condo and townhouse purchases in NYC, though contracts and property types can lead to variations.

Do mortgage financing or first‑time buyer status change the mansion tax?

• The mansion tax is based on price, not financing or buyer status; whether you pay cash or finance, the 1% applies at $1,000,000 or more.

How can I estimate my total cash to close for a UWS condo?

• Add your down payment, mansion tax if applicable, NYC RPTT, mortgage recording tax if financing, lender and attorney fees, title, inspections, prepaids, and building fees, plus a 1% to 2% buffer.