What is the Mansion Tax?

The Mansion Tax is a New York State transfer tax imposed on all residential real estate sales at a purchase price of $1,000,000 or more. The base rate is 1% of the total purchase price, applied to the entire amount — not just the portion above the threshold. This tax is paid by the buyer at closing. In New York City, a graduated mansion tax applies at higher rates for very expensive properties, but outside the city, the flat 1% rate applies statewide, including in the Catskills region.

With property values rising significantly across the Western Catskills over the past several years, the Mansion Tax has become increasingly relevant for buyers in Delaware, Ulster, Greene, and Otsego counties. Larger farmhouses, mountain retreats with acreage, and premium properties in sought-after hamlets and villages have increasingly crossed the $1,000,000 threshold. A buyer purchasing a $1,100,000 property, for example, would owe $11,000 in Mansion Tax at closing. Buyers should factor this into their closing cost budget, particularly as they shop in the upper price ranges of the Catskill market.