New York’s luxury real estate market could face a major tax shift in the coming months.
State lawmakers are pushing a measure that directly targets million-dollar purchases made without bank financing, a very common practice among major investors and high-net-worth buyers.
New York imposes a new tax on these homes
The proposal seeks to apply a new 1% tax on homes purchased entirely in cash for amounts above one million dollars in New York. The bill specifically targets:
- Properties valued at more than USD 1 million
- Homes purchased without a mortgage or bank loan
- Real estate transactions made entirely in cash
How the new property tax will work
According to the initiative presented by New York lawmakers:
- An additional 1% surcharge would apply
- The buyer would have to pay it at the time of the transaction
- It would be added to other existing property taxes and costs