How Much Is the Mansion Tax on Long Island? (2026)

The Long Island Mansion Tax is 1% of the purchase price for residential properties costing $1 million or more. Buyers typically pay this tax. For instance, if you buy a home for $999,999, no Mansion Tax applies since the price is below $1 million.

However, at a $1,000,000 purchase, the tax would be 1% of the total, amounting to $10,000. This tax applies to all types of residential real estate, including condos, co-ops, and one to three-family houses, but not to commercial properties.

It’s one of the largest closing costs for buyers, alongside title insurance and attorney fees.

The Mansion Tax is part of the New York State real estate transfer tax under Article 1402-a, established in 1989. Since authorities did not adjust for inflation, it significantly affects many transactions on Long Island.

The easiest way to avoid the Mansion Tax when buying on Long Island is to work with a buyer’s agent who offers a commission rebate.

This works because sellers typically pay all real estate commissions, including the buyer’s agent’s share, which is typically split 50/50. For example, if the total commission is 6%, each agent gets 3%. Your buyer’s agent, therefore, earns 3% from the seller for representing you.

If your agent offers a rebate, they will share a portion of the 3% with you.

For example, a 2/3 rebate of a 3% commission results in a 2% rebate on the purchase price.

• For a $1 million home, that’s $20,000 in savings—covering your $10,000 Mansion Tax and leaving $10,000 extra.
• For a $5 million home, the same rebate saves you $100,000. Essentially, a buyer rebate can significantly reduce or eliminate the Mansion Tax, issued as a credit at closing or by check afterward.

The Long Island Mansion Tax is a closing cost paid by the buyer. Remember, nearly everything related to the transaction, including who covers the Mansion Tax, is negotiable in a Long Island real estate deal.

However, don’t expect the seller to agree to pay this tax unless you have strong bargaining power. Sellers usually resist paying the Mansion Tax for the buyer because it’s generally not tax-deductible, so it doesn’t help reduce capital gains taxes like other closing costs do. According to Section 1402-a, the Mansion Tax must be paid within 15 days after closing, along with the standard New York State Transfer Tax, which the seller typically pays.

The Long Island Mansion Tax applies to both existing homes and new construction properties. Keep in mind that buyer closing costs are usually higher for new builds, as buyers often pay closing costs that sellers typically cover, such as transfer taxes and legal fees for the seller.

Any seller-paid closing costs come on top of the purchase price when calculating the Mansion Tax for a new build. Therefore, a new home could still be subject to the Mansion Tax if its purchase price is below $1 million. For instance, if your purchase price is $995,000 and the NYS Transfer Tax is $3,980, the total is $998,980.

Adding $2,000 in seller legal fees raises the total to $1,000,980, which exceeds the $1 million threshold, resulting in the Mansion Tax on this purchase.

The Mansion Tax rate is 1% in both NYC and Long Island for properties under $2 million. However, for homes priced at $2 million or above, the Mansion Tax rates are higher in NYC compared to Long Island.

This is due to NYC’s tiered tax brackets based on purchase price, with the top rate of 3.9% applying to homes costing $25 million or more.