New Progressive Mansion Tax

  • This new law applied to all NYC contracts that were signed on or after April 1, 2019 and that close on or after July 1, 2019.

  • Effective April 1, 2019, as part of the new state budget there will now be 8 tiers, each with a mansion tax rate that increases as purchase prices increase.

  • Since its enactment in 1989, New York State Mansion Tax has held firm at 1%.

 

Purchase Price Range

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The New Progressive NYS Transfer Tax

  • In addition to an overhaul of the NYS Mansion Tax, the NYS Transfer Tax will be also be changing, effective April 1, 2019.

  • For Residential Purchases greater than $3 million, the NYS Transfer Tax increases from its current rate of 0.4% to 0.65%.

  • This new rate also applies for commercial purchases greater than $2 million.

 

Why is this new tax rule called “progressive”?

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Additional Changes in the New State Budget

  • The NYS top income tax rate (for those who earn over $1 million/year) will not be increased for at least the next 5 years.

  • The temporary property tax cap (limiting property tax increases to no more than 2% from year to year) in now permanent.

  • The proceeds from these new taxes are earmarked for the MTA for subway repairs and upgrades.