What tax does New York State collect from buyers of one to three family homes or individual units worth $1 million or more?

In New York State, the tax collected from buyers of one to three family homes or individual units valued at $1 million or more is known as the mansion tax. This tax is levied specifically on high-value residential real estate transactions, and it is applicable when the purchase price meets or exceeds the $1 million threshold. The mansion tax rate is structured as a percentage of the purchase price, and it is paid at the closing of the property sale.

The purpose of this tax is to generate revenue that can be used for various public programs and initiatives. It's important to note that this tax is distinct from other types of taxes that may be associated with real estate transactions, such as transfer taxes or capital gains taxes, which apply in different contexts. The mansion tax specifically targets higher-end property sales, making it a significant consideration for buyers in the luxury real estate market in New York.