Federal guide · Buying

Mansion taxes: when a higher price triggers a higher rate

New York, Los Angeles, San Francisco, Washington, DC and others charge more once the price crosses a threshold, often on the whole price. The thresholds and what they cost.

Checked on against the official sources listed at the bottom of the page.

In short

A “mansion tax” is a higher transfer tax rate that starts at a price threshold. In most of the places below, once the threshold is crossed, the higher rate applies to the whole price, not just to the part above it. That creates a jump: in Los Angeles, a home sold for $5,400,000 owes $30,240 in transfer taxes, while one sold one dollar higher owes about $216,000 more (about $246,000 in all), because the 4% “ULA” tax applies to the entire price. All figures below are computed by Payotte from the official rates, before exemptions.

New York: from $1 million

New York State charges an additional 1% tax on residential sales of $1 million or more, paid by the buyer (Form TP-584 instructions). In New York City a supplemental tax is added from $2 million, so the combined rate rises from 1% to 3.9% at $25 million or more. On a $2,000,000 home in New York City, Payotte computes $61,500 in transfer taxes: the city’s RPTT ($28,500), the 1% plus 0.25% buyer taxes ($25,000) and the state’s base tax ($8,000). See New York City.

Los Angeles: Measure ULA from $5.4 million

For sales closing after June 30, 2026, Los Angeles adds 4% above $5,400,000 and 5.5% from $10,900,000, on the total price, on top of the city’s base tax of $2.25 per $500 and the county’s $0.55 per $500 (Los Angeles County Registrar-Recorder). On a $6,000,000 home that is $273,600: $240,000 of ULA, $27,000 of city base tax and $6,600 of county tax. The thresholds are adjusted every year. See Los Angeles.

San Francisco: brackets on the whole price

San Francisco applies one rate to the entire price according to its bracket: 0.75% from $1 million, 2.25% from $5 million, 5.5% from $10 million and 6% from $25 million. A sale at $4,999,999 owes about $37,500; at $5,000,000 it owes $112,500. A ballot measure on November 3, 2026 (Proposition I) concerns sales of $10 million or more; Payotte will update the page once the result is final. See San Francisco.

Other thresholds Payotte computed

  • Washington, DC: the deed recordation and transfer taxes each go from 1.1% to 1.45% of the whole price at $400,000. At $399,999 the two come to about $8,800; at $400,000, to $11,600.
  • Anne Arundel County, Maryland: the county transfer tax is 1% up to $999,999.99 and 1.5% of the whole price from $1,000,000.
  • Santa Monica, California: $3 per $1,000 below $5 million, $6 from $5 million and $56 per $1,000 from $8 million.
  • Mountain View, California: $1.65 per $500 up to $6 million, then 1.5% of the whole price.
  • San Jose, California: Measure E adds 0.75% above $2.3 million, 1% from $5 million and 1.5% above $10 million.
  • Culver City, California: the exception that works like income tax brackets: 0.45% up to $1,499,999, then 1.5%, 3% and 4% only on each slice.

The full list, with each place’s rates and sources, is in Local transfer taxes in the US.

What it means for a buyer or a seller

Near a threshold, the price matters more than usual. A seller asking slightly above a threshold may net less than one asking just below it, and the contract decides who bears the tax where the law allows it. Some items can be sold separately from the house, but the rules on what counts as consideration differ by place; ask the closing attorney or settlement agent before you structure a price around a threshold.

Frequently asked questions

What is a mansion tax?

A transfer tax at a higher rate for homes above a price threshold. New York State’s 1% tax from $1 million is the best known; Los Angeles, San Francisco and Washington, DC have their own.

Does the higher rate apply to the whole price?

In New York, Los Angeles, San Francisco, Washington, DC, Anne Arundel County, Santa Monica and Mountain View, yes. In Culver City it applies only to the part above each threshold.

Who pays the New York mansion tax?

The buyer. The Form TP-584 instructions state that the additional tax and the supplemental tax are paid by the grantee.

Are the thresholds indexed?

Some are. The Los Angeles ULA thresholds are adjusted each year (from $5.3 million to $5.4 million on July 1, 2026). New York’s $1 million threshold is fixed in the law.

General information drawn from the official sources cited and dated on this page. It is not legal, tax or financial advice: for your own situation, ask a licensed professional.

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Sources

All federal guides · All states