The one-time mansion tax is $45,000 on a $3,000,000 purchase. The annual surcharge that follows depends on the city's valuation, not the price.
Facts checked October 9, 2026. Roll data: Department of Finance supplemental roll of July 24, 2026.
A $3,000,000 second home in New York City costs $45,000 in mansion tax at closing, plus a pied-a-terre surcharge that runs from $40,000 a year at a Department of Finance valuation of $1,000,000 to $157,500 a year at $3,000,000, so the first-year cost ranges from $85,000 to $202,500. The two taxes work off different numbers, which is where buyers get caught: the mansion tax follows the price you pay, and the surcharge follows the city's valuation of the apartment.
Across my 25+ years selling NYC real estate, this is a cost line second-home buyers now have to price, and it belongs in the offer, not after it. The mansion tax is owed on a primary residence too, while the surcharge is not, so the order of questions matters. Start with the price, then read the valuation off the tax bill.
The mansion tax is paid by the buyer, once, at closing, on residential purchases of $1,000,000 or more anywhere in the city. It applies to the entire price, so it is a cliff, not a marginal rate. A $3,000,000 purchase falls in the $3,000,000 to $4,999,999 bracket at 1.50%, which is $45,000. A price of $2,999,999 would owe 1.25%, about $37,500. The tax is reported on Form TP-584. Run your own price through the mansion tax calculator and read the complete mansion tax guide for the full schedule.
The surcharge is annual and applies to condos and co-ops the city values at $1,000,000 or more that are not anyone's primary residence. Phase 1 rates apply to the full valuation: 4% from $1,000,000, 5.25% from $3,000,000, 6.5% from $5,000,000. Because the valuation usually runs below the sale price, a $3,000,000 purchase does not automatically land in the 5.25% band. On the July 24 roll, 16,574 of the 17,750 over-the-line units, or 93%, are valued under $3,000,000 and so sit in the 4% band.
I cannot tell you which row your apartment lands in without its valuation, so here is the grid for a $3,000,000 purchase price. It assumes a full year of surcharge and no exemption.
| DOF valuation | Mansion tax (one time) | Surcharge (per year) | First-year total |
|---|---|---|---|
| $1,000,000 | $45,000 | $40,000 | $85,000 |
| $1,500,000 | $45,000 | $60,000 | $105,000 |
| $2,000,000 | $45,000 | $80,000 | $125,000 |
| $2,900,000 | $45,000 | $116,000 | $161,000 |
| $3,000,000 | $45,000 | $157,500 | $202,500 |
After year one, only the surcharge repeats. At a $2,000,000 valuation that is $80,000 every year the rule applies, which is why I treat it as a permanent line next to common charges and property tax. The mansion tax does not come back; the surcharge does. Phase 1 runs through June 30, 2028, and the whole tax sunsets June 30, 2031 unless renewed.
Enter the address of the apartment you are pricing and I will show the Department of Finance valuation and the band it falls in.
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Manhattan and Brooklyn condos in the price range the surcharge reaches
58 ST MARKS Place #902
Boerum Hill
127 E 64th Street #1/2
Lenox Hill
Listing information provided courtesy of the Real Estate Board of New York's Residential Listing Service (RLS). Information is deemed reliable but not guaranteed. Sale listings verified. ©2026 REBNY. RLS data displayed by Keller Williams NYC.
If the apartment will be a part-time home, the surcharge is what you are really buying into. A tenant can change that on a qualifying lease; the sell or lease comparison and my pied-a-terre buying guide cover the options. The pied-a-terre tax hub lists every building on the roll.
This is general information, not legal or tax advice. Confirm your own filing with a New York real estate attorney or your CPA.
Facts on this page were checked against these sources on October 9, 2026.
Manhattan and Brooklyn condos in the price range the surcharge reaches
20 PINE Street #1213
Financial District
128 Summit Street #3
Carroll Gardens
Listing information provided courtesy of the Real Estate Board of New York's Residential Listing Service (RLS). Information is deemed reliable but not guaranteed. Sale listings verified. ©2026 REBNY. RLS data displayed by Keller Williams NYC.
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Disclaimer: All information provided in this article is for educational purposes only and does not constitute legal, financial, or real estate advice.
Listing data sourced from the REBNY Residential Listing Service (RLS). Information is deemed reliable but not guaranteed.
Milton Coste is a Licensed Real Estate Associate Broker affiliated with Keller Williams NYC,
360 Madison Avenue, 9th Floor, New York, NY 10017. License No. 10301213304.
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Licensed Real Estate Associate Broker · Keller Williams NYC
License No. 10301213304 · 360 Madison Avenue, 9th Floor, New York, NY 10017
