Buying in Greenwich Village and hearing a lot about the “mansion tax”? You are not alone. When purchase prices cross seven figures, small details can have a big impact on your cash to close and your negotiating plan. In this guide, you will learn what the mansion tax is, when it applies, how to estimate it on Village homes and co‑ops, and smart ways to plan for it so your deal stays on track. Let’s dive in.
What the mansion tax is
The “mansion tax” is the everyday term New Yorkers use for a New York State real estate transfer surcharge that applies to most residential purchases priced at or above 1,000,000 dollars. It is a state surcharge, not a city tax. You will see it in contracts and closing statements for condos, co‑ops, single‑family homes, and two‑ to three‑family residences when the purchase price meets the threshold.
For co‑ops, you buy shares in the corporation rather than a deed. Even so, the surcharge is typically applied to co‑op share purchases in the same way as deeded homes, subject to standard nuances that your attorney will confirm. The key point is simple. If your contract price is 1,000,000 dollars or more, you should expect the surcharge to be part of your closing costs.
Who pays and when
The buyer customarily pays the mansion surcharge at closing. That said, you can negotiate who pays it in the contract. Market conditions and the strength of your offer usually determine how flexible the seller may be.
Payment is due at closing. The closing agent, title company, or your attorney will collect and remit it as part of the standard closing package. Expect it to be handled alongside other transfer tax filings.
How to estimate your cost
A common rule of thumb is 1 percent of the total purchase price when the price is 1,000,000 dollars or more. That lets you do a quick estimate as you tour properties and write offers. Always have your attorney or closing team verify current rules and any updates before you sign.
Illustrative Greenwich Village examples
- 1,200,000 dollar condo: estimated surcharge at 1 percent is 12,000 dollars. You would also budget for New York City’s Real Property Transfer Tax, plus standard closing fees.
- 2,500,000 dollar townhouse: estimated surcharge at 1 percent is 25,000 dollars, plus city transfer tax and typical closing costs.
- 1,050,000 dollar co‑op: estimated surcharge at 1 percent is 10,500 dollars. Co‑ops may also have a flip tax or board transfer fee, which is separate from government taxes.
These are examples to show the ballpark. Your exact numbers depend on your property type, price, financing, and building‑specific fees.
How it fits with other NYC closing costs
The mansion surcharge is one line on a larger closing cost sheet. Here is how it fits with the rest:
- New York City Real Property Transfer Tax (RPTT). This is a separate city tax with its own rate schedule for residential properties. It is paid in addition to the state surcharge.
- New York State base transfer tax. Separate from the mansion surcharge, it is part of the transfer tax filings your team completes at closing.
- Mortgage recording tax and recording fees. If you finance your purchase, state and city mortgage recording taxes may apply. These are separate from transfer taxes.
- Title insurance, attorney, and lender fees. Standard items that vary by transaction. Title insurance is common for condos and townhouses. Co‑ops are typically attorney‑driven without title insurance.
- Co‑op fees. Flip taxes, application fees, move‑in deposits, and any sponsor or developer fees for new buildings are building‑specific and are not government taxes.
The takeaway is straightforward. You will pay the state surcharge plus city transfer tax and normal closing fees, then any co‑op or building charges specific to your deal.
Greenwich Village specifics
Greenwich Village is a high‑value Manhattan neighborhood with many homes and co‑ops that trade above 1,000,000 dollars. That means the surcharge affects a significant share of local buyers. Inventory includes classic co‑ops, prewar and postwar condos, and townhouses, so you will often see co‑op procedures and building fees alongside the state and city transfer taxes.
Timing also matters in the Village. Co‑op board approvals and building requirements can influence your closing calendar. Your attorney and agent will coordinate tax filings with the board process so payments and documents are handled cleanly at closing.
Affordability, negotiation, and strategy
- Budget early. Add the surcharge to your affordability plan and your mortgage preapproval discussion so you have enough cash to close. Lenders typically do not include transfer taxes in loan proceeds.
- Negotiate in context. In a buyer’s market, you may be able to ask the seller to pay some or all of the surcharge. In a strong seller’s market, plan to cover it yourself to stay competitive.
- Write it into the contract. If you negotiate who pays, make sure the contract clearly assigns responsibility for the surcharge and other closing costs.
- Keep an eye on total cost. The surcharge is one part of the bigger picture that includes the city transfer tax, mortgage recording tax, title or attorney fees, and building charges.
What to do at each stage
Use this practical checklist to stay organized from accepted offer to closing:
Early in your search
- Ask your agent for a closing cost estimate on each target property, including the state surcharge and city transfer tax.
- Confirm whether the purchase price is likely to trigger the surcharge. If you expect to offer 1,000,000 dollars or more, include it in your cash plan.
- For co‑ops, review the bylaws for flip taxes or transfer fees and any who‑pays conventions. Ask about application and move‑in deposits.
Before and at contract
- Negotiate who pays which transfer taxes and fees, then put it in writing in the contract of sale.
- Confirm with your lender whether any closing costs can be financed or whether you must bring them in cash. Most buyers should plan to pay transfer taxes in cash.
- Ask your attorney to verify current state and city rules and prepare a cash‑to‑close worksheet that shows the surcharge line item.
At closing
- Expect the closing agent, title company, or your attorney to collect and remit the surcharge and other transfer taxes.
- Confirm who will prepare and file the state and city transfer tax returns. For co‑ops, attorneys typically handle the filings.
- Request a written breakdown of taxes and fees, including receipts for the amounts paid.
After closing
- Keep your closing statements and tax receipts. Buyers often add transfer taxes to the property’s tax basis for future capital gains calculations. Consult a CPA for your specific situation.
Filing and logistics you can expect
Your closing team will prepare the required transfer tax returns, collect the funds, and file everything at or immediately after closing. For deeded properties, the deed and any mortgage are recorded. For co‑ops, the cooperative share transfer documents and related filings are handled by your attorneys. Payment timelines are strict. Late filings can trigger penalties and interest, which is why these items are bundled into standard closing procedures.
Tax treatment basics
For buyers, transfer taxes and surcharges are generally not deductible as property taxes in the year you buy. They typically increase your cost basis, which can matter when you sell. Since tax treatment depends on your personal situation, ask a CPA to confirm how the rules apply to you.
Simple scenarios to sanity‑check your plan
- You offer 1,200,000 dollars on a one‑bedroom condo. Plan for an estimated 12,000 dollar surcharge, plus the city transfer tax and standard closing fees. Make sure your cash to close covers the full amount.
- You win a 2,500,000 dollar townhouse. Budget an estimated 25,000 dollar surcharge, city transfer tax, mortgage recording tax if financing, and title and attorney fees. If the market is soft, consider asking the seller to share closing costs in the contract.
- You buy a 1,050,000 dollar co‑op. Plan for an estimated 10,500 dollar surcharge, possible co‑op flip tax and application fees, plus attorney costs. Your attorney will guide the board process and filings.
Each case is different. The best step is to get a property‑specific closing estimate as soon as you are serious about an offer.
Final thoughts
The mansion tax is not complicated once you know what to expect. In Greenwich Village, it often applies, so a clear cash plan and a well‑written contract make all the difference. With the right team, you can budget accurately, negotiate strategically, and close with confidence.
If you want a property‑specific closing cost estimate or help weighing your options, connect with a local advisor who understands Village co‑ops and condos. Reach out to Darya Goldstein to talk through your goals and next steps.
FAQs
What is the NYC mansion tax for Greenwich Village buyers?
- It is a New York State real estate transfer surcharge that typically applies to residential purchases priced at or above 1,000,000 dollars, paid in addition to city transfer taxes.
Does the mansion tax apply to Greenwich Village co‑ops?
- Yes. Most co‑op share purchases at or above 1,000,000 dollars trigger the surcharge, separate from any co‑op flip tax or board fees.
Can I finance the mansion tax with my mortgage in NYC?
- Lenders usually do not include transfer taxes in loan proceeds, so plan to bring the surcharge to closing in cash unless your lender allows otherwise.
Who usually pays the mansion tax in NYC contracts?
- The buyer customarily pays it, but you can negotiate who pays in the contract depending on market conditions and deal terms.
Are there any exemptions from the NYC mansion tax?
- Limited statutory exemptions may exist for specific transfer types, but they are narrow and must meet strict requirements, so confirm with your attorney.
How is the mansion tax different from the NYC Real Property Transfer Tax?
- The mansion tax is a New York State surcharge, while the NYC Real Property Transfer Tax is a separate city tax with its own rates and rules; both are typically paid at closing.
When is the mansion tax paid and who files it?
- It is paid at closing, and your closing agent, title company, or attorney prepares the required returns and remits payment along with other transfer taxes.
