Mansion Tax And Closing Costs For SoHo Buyers

Buying in SoHo comes with an extra line on the spreadsheet that can surprise even seasoned buyers: mansion tax and closing costs. You want a clear number before you write an offer, especially with condos and sponsor units common in the neighborhood. In this guide, you’ll learn exactly what the New York mansion tax is, how the brackets work in NYC, and what typical buyer closing costs look like for condos and co‑ops. Let’s dive in.

Mansion tax basics in SoHo

The “mansion tax” is a New York State transfer tax paid by the buyer on residential purchases of 1,000,000 dollars or more. In New York City, there is a progressive surcharge for prices at or above 2,000,000 dollars that increases the effective rate as price rises. You can review the state’s transfer tax framework on the Department of Taxation and Finance site and buyer liability rules on Form TP‑584 guidance, and the progressive NYC structure summarized by legal updates after the 2019 law change (NYS transfer tax overview, NYC progressive rates summary).

Current mansion tax brackets

• 1,000,000 to 1,999,999 dollars: 1.00 percent.
• 2,000,000 to 2,999,999 dollars: 1.25 percent.
• 3,000,000 to 4,999,999 dollars: 1.50 percent.
• 5,000,000 to 9,999,999 dollars: 2.25 percent.
• 10,000,000 to 14,999,999 dollars: 3.25 percent.
• 15,000,000 to 19,999,999 dollars: 3.50 percent.
• 20,000,000 to 24,999,999 dollars: 3.75 percent.
• 25,000,000 dollars or more: 3.90 percent. (NYC progressive rates summary)

How much you might pay

• At 1,000,000 dollars, the tax is 10,000 dollars at 1.00 percent.
• At 2,500,000 dollars, the tax is 31,250 dollars at 1.25 percent.
• At 5,000,000 dollars, the tax is 112,500 dollars at 2.25 percent. (NYC progressive rates summary)

Buyer closing costs in SoHo

Your total buyer closing costs vary based on property type and whether you finance. In NYC, typical buyer costs run roughly 1.5 to 6 percent of the purchase price, with condos at the higher end because of title insurance and the mortgage recording tax. Expect larger totals once you cross 1,000,000 dollars due to the mansion tax. See practical NYC ranges here (typical buyer closing costs).

Condo vs co‑op cost differences

• Condos: You receive a deed. If you finance, you usually pay the mortgage recording tax and you’ll buy title insurance. This drives higher up‑front costs compared with co‑ops (mortgage recording tax overview, title insurance ranges).
• Co‑ops: You buy shares and a proprietary lease, not real property. There is no mortgage recording tax and no title insurance. Expect co‑op specific application and move‑in fees that vary by building (co‑op closing costs overview, co‑op vs condo guide).

Common buyer line items and ranges

• Mansion tax: 1.00 to 3.90 percent based on price bracket (brackets and examples).
• Mortgage recording tax on condos if financed: commonly about 1.8 to 1.925 percent of the mortgage amount, depending on loan size and lender contributions (mortgage recording tax overview).
• Title insurance for condos: roughly 0.4 to 0.6 percent of the purchase price, depending on policy and endorsements (title insurance ranges).
• Buyer’s attorney: about 1,500 to 4,000 dollars, depending on complexity (co‑op closing costs overview).
• Bank fees: appraisal, processing, and points vary by lender.
• Building fees: application, move‑in, and recognition agreement charges often range from 200 to 1,500 dollars or more (co‑op closing costs overview).
• NYC Real Property Transfer Tax and NYS base transfer tax: usually seller paid in resales, but sponsor sales often shift them to buyers. Review rates and who is liable on the NYC and state pages (NYC RPTT overview, NYS transfer tax overview, sponsor deal practices).

Real‑world SoHo examples

Below are simplified illustrations. Your exact numbers depend on loan size, building fees, and contract terms.

Example A: 1,000,000 dollar condo, 80 percent financed

• Mansion tax: 10,000 dollars at 1.00 percent (brackets and examples).
• Mortgage recording tax: about 1.925 percent of an 800,000 dollar loan, or roughly 15,400 dollars. Confirm the exact rate with your lender (mortgage recording tax overview).
• Title insurance: around 0.45 percent of price, about 4,500 dollars in this scenario (title insurance ranges).
• Attorney, bank, and building fees: often 5,000 to 8,000 dollars.
• Estimated buyer closing cash, excluding down payment: roughly 35,000 to 45,000 dollars.

Example B: 2,500,000 dollar condo, all cash

• Mansion tax: 31,250 dollars at 1.25 percent.
• Title insurance: approximately 11,250 dollars at 0.45 percent.
• Attorney and building fees: about 5,000 to 10,000 dollars.
• Estimated buyer closing cash: roughly 47,000 to 52,000 dollars. Mansion tax is the largest single item at this price point (brackets and examples).

Example C: 5,000,000 dollar condo

• Mansion tax: 112,500 dollars at 2.25 percent. Title premiums and any lender endorsements scale with price, so plan accordingly (brackets and examples).

How to plan and avoid surprises

• Confirm property type and deal type. Condo vs co‑op and sponsor vs resale determine whether you pay mortgage recording tax and which transfer taxes can shift to you (co‑op vs condo guide, sponsor deal practices).
• Map your price bracket early. A small change around 1,000,000 or 2,000,000 dollars can change your tax rate (NYC progressive rates summary).
• If financing, estimate the mortgage recording tax with your projected loan amount and confirm lender contributions (mortgage recording tax overview).
• Track filing deadlines. Transfer and mansion tax forms and payments are generally due within 15 days of delivery of the deed or conveyance (NYS transfer tax overview).
• Buying through an entity. NYC has enhanced reporting for certain transfers, so collect LLC or trust documentation early (NYC RPTT overview).

Work with a SoHo‑focused team

Pricing power in SoHo starts with precise numbers and smart contract terms. You deserve representation that models your costs up front, helps you compare co‑ops and condos, and negotiates sponsor and transfer tax items when the opportunity is there. For bespoke guidance and clear, deal‑ready numbers, connect with The Anable Podell Team. We pair boutique, high‑touch service with data‑driven negotiation to help you buy with confidence.

FAQs

What is the mansion tax on a 2,500,000 dollar SoHo condo?

• It is 1.25 percent of the purchase price, which equals 31,250 dollars in this example (NYC progressive rates summary).

Do SoHo co‑op buyers pay the mortgage recording tax?

• No. The mortgage recording tax applies when a mortgage is recorded on real property like condos and townhouses, not on co‑op share purchases (mortgage recording tax overview, co‑op closing costs overview).

Who typically pays NYC Real Property Transfer Tax in a SoHo condo purchase?

• In resales, the seller usually pays NYC RPTT, but sponsor and new development contracts often shift it to the buyer, so review your contract closely (NYC RPTT overview, sponsor deal practices).

When is the mansion tax due in NYC purchases?

• It is paid at closing and reported on transfer tax filings, which are generally due within 15 days of the deed or conveyance date (NYS transfer tax overview).

How much should I budget for buyer closing costs on a financed SoHo condo?

• A common range is roughly 3 to 5 percent of the purchase price when you include mortgage recording tax, title insurance, attorney, and building fees, with totals higher above 1,000,000 dollars because of the mansion tax (typical buyer closing costs).