The New York mansion tax is a 1% fee on residential real estate sales of $1 million or more. For New York City purchases, there is a graduated surcharge: 1.25% on sales of $2 million, climbing to 3.9% on sales over $25 million. The mansion tax is paid by the buyer at closing. In Manhattan and high-cost Brooklyn neighborhoods, many buyers negotiate the purchase price to fall just under $1 million when feasible to avoid this tax entirely.

New York has some of the highest and some of the lowest property taxes in the US within the same state. Westchester and Rockland counties near New York City consistently rank in the national top ten for tax burden, with effective rates above 2.5%. Upstate counties including Erie, Onondaga, and Monroe can have similar rates on much lower home values, producing different cash impact. NYC itself has relatively low property tax rates (around 0.9%) but very high home prices. Always look up the specific school district and municipal rate for any New York home.

STAR (School Tax Relief) provides a rebate on school property taxes for owner-occupied primary residences in New York. Basic STAR is available to homeowners earning under $250,000 and typically saves $290 to $600 per year. Enhanced STAR, for homeowners 65 or older earning under $107,300, saves $650 to $1,500 per year. New homeowners receive STAR as a direct rebate check rather than a property tax reduction. File through the New York State Department of Taxation and Finance.

In New York City especially, many residences are co-ops rather than condos. When you 'buy' a co-op, you purchase shares in a corporation that owns the building; your lender underwrites both you and the building's financial health. Co-op boards can reject buyers, require large down payments (typically 20-30%), and impose monthly maintenance fees that cover the building's underlying property taxes and mortgage. For condos, you own real property and the process is closer to a standard home purchase, though common charges and building-level assessments still apply.

New York has one of the most expensive closing cost environments in the US. Buyers typically pay mansion tax (if applicable), mortgage recording tax (1.8% to 2.175% of the loan amount depending on county and loan size), title insurance, attorney fees (New York requires attorney representation for most real estate transactions), and condo-specific fees for boards and managing agents. Total closing costs for a Manhattan purchase can run 5 to 6 percent of the purchase price, compared to 2 to 3 percent in most other states.