Shopping for a North Shore home and hearing about the “mansion tax” at the same time can feel overwhelming. If you are looking in Roslyn or nearby villages, many prices cross $1 million, so this cost often comes up right as you finalize your offer. This guide explains what the tax is, when it applies, who typically pays it, and how to plan for it with confidence. Let’s dive in.
Mansion tax basics
The New York State “mansion tax” is a one-time state transfer tax that applies when you buy residential real estate at or above $1,000,000. As of 2024, the state rate is 1.0% of the purchase price for qualifying residential transfers. The tax is collected at closing when the deed or transfer is recorded. You can review current guidance on the New York State Department of Taxation and Finance website.
In Nassau County, you follow state rules and local recording procedures. Do not mix these rules with New York City’s separate transfer taxes. Nassau County does not add the NYC surcharges.
When it applies in Roslyn
If your contract price is $1,000,000 or more, the mansion tax is triggered. This is common in Roslyn and along the North Shore, where many single-family purchases and select condos or co-ops reach seven figures.
Covered property types
- Single-family homes
- Condominiums
- Cooperative apartments (co-ops) when the transfer value reaches $1,000,000 or more
- Multi-unit residential properties that are primarily residential
- Certain vacant land intended for residential use
Transactions outside scope
Commercial-only properties follow different transfer tax rules. Some transfers have narrow exemptions under state law. For specific situations, check current guidance on the New York State Department of Taxation and Finance website and speak with your closing attorney.
How to calculate your cost
The formula is simple: 1% × total purchase price when the price is $1,000,000 or more.
Examples:
- $1,000,000 purchase price → mansion tax = $10,000
- $1,200,000 purchase price → mansion tax = $12,000
- $2,500,000 purchase price → mansion tax = $25,000
Because prices in Roslyn and nearby North Shore communities often clear $1 million, you should plan for an extra 1% of the contract price in your cash-to-close estimate.
Who typically pays and how
By custom, the purchaser pays the mansion tax at closing. It is usually listed on your settlement statement as a New York State transfer tax line item and collected by the title or settlement agent. The parties can negotiate who pays, so your contract should clearly state the agreement.
Lenders generally do not finance this tax into your mortgage principal. Expect to cover it in cash at closing unless your contract includes a seller concession or other arrangement.
What else to budget in Nassau County
The mansion tax is one of several closing costs you may encounter. Plan for:
- Mortgage-related taxes and recording fees if you are financing
- County clerk recording and document fees
- Title insurance premiums and title search fees
- Attorney fees and standard settlement charges
For local recording procedures and current fee schedules, refer to the Nassau County Clerk. For village-level information that may affect local procedures, view the Village of Roslyn resources. Remember, Nassau County does not impose NYC-specific transfer taxes.
Co-ops and the mansion tax
For co-op purchases, transfers of shares or proprietary leases are generally treated as residential transfers for mansion tax purposes when the price meets or exceeds $1,000,000. Your attorney and the co-op’s transfer agent will confirm the correct forms and reporting.
Planning and negotiation tips
- Build the 1% line into your budget early. Add it to your cash-to-close estimate as soon as you set your price range.
- Use clear contract language. If you negotiate a seller concession or cost-sharing, make sure the contract specifies who pays the mansion tax.
- Align with your lender’s requirements. Most lenders require you to pay the tax at closing in cash. Confirm timing and acceptable payment methods in advance.
- Request a written closing estimate. Ask your attorney or title company for a full breakdown that includes the mansion tax, county recording fees, title premium, legal fees, and any lender charges.
- For co-ops, confirm transfer logistics early. Coordinate with the managing agent and your attorney to keep the process smooth and compliant.
A quick checklist for North Shore buyers
- Is your purchase price $1,000,000 or more? If yes, plan for the 1% mansion tax.
- Ask your lender if the tax must be paid in cash at closing.
- Get a written closing cost estimate from your attorney or title company.
- For co-ops, confirm transfer agent procedures and required documents.
- If negotiating who pays, put the agreement in the contract.
Roslyn context and what to expect
Roslyn and neighboring North Shore communities often see purchase prices at or above $1 million, so the mansion tax is a common part of closing. The tax is straightforward to calculate, and with early planning it should not disrupt your timeline. The key is to budget for it up front, confirm details with your attorney, and align your contract and lender documentation.
If you would like a precise closing estimate and a negotiation plan tailored to your target property, connect with Dalia Elison. Schedule a Confidential Consultation.
FAQs
What is the NY mansion tax for Nassau County buyers?
- It is a one-time New York State tax of 1% on residential purchases at or above $1,000,000, typically paid by the buyer at closing. See current rules on the New York State Department of Taxation and Finance site.
Does the mansion tax apply to Roslyn co-op purchases?
- Yes. Transfers of co-op shares or proprietary leases are generally subject to the tax when the price is $1,000,000 or more. Confirm handling with your attorney and the co-op transfer agent.
Can I finance the mansion tax into my mortgage?
- Usually no. Lenders generally require you to pay the mansion tax in cash at closing, though contract concessions can offset total cash to close.
Who pays the mansion tax in a Roslyn deal?
- By custom the buyer pays, but it is negotiable. If costs are shared or shifted, the contract should state the allocation clearly.
Is there a separate Nassau County mansion tax?
- No. Nassau County follows state rules and local recording procedures. NYC’s separate transfer taxes do not apply in Nassau County. For local fees, see the Nassau County Clerk.
How do I estimate closing cash on a $2.5M Roslyn home?
- Start with a $25,000 mansion tax, then add title insurance, county recording fees, attorney fees, and any lender charges. Ask your attorney or title company for a written estimate.
Are there any exemptions to the mansion tax?
- Some transfers have narrow exemptions under state law. Review current guidance on the New York State Department of Taxation and Finance website and consult your closing attorney for your specific case.
