New York State Changes to Transfer Tax and Mansion Tax Rates: Will My Closing be Affected?

April 4, 2019

By now, you may have heard about the New York State’s revenue legislation as part of the 2020 budget, which contains substantive changes to the Purchaser’s Transfer Tax (commonly known as the “Mansion Tax”) as well as the New York State Transfer Tax. The changes take effect for transactions that close July 1, 2019 and onward, with some caveats.

While the changes are clear on which transactions they affect (Purchasers of $2M and above and Sellers of $3M and above), current purchasers and sellers may be wondering how this will affect their own transactions if, for example, they are already in contract, or plan to close prior to July 1.

To assist with this, we put together an easy-to-follow chart to help our clients understand whether or not the new rates apply to their transaction. We hope that it is helpful, and please feel free to reach out to us if you have any further questions! If you are looking for more information about the substance of these changes, you can find out more here.

 

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