The Mansion Tax Surprise
Mansion tax by jurisdiction on $1M purchase
| Jurisdiction | Mansion Tax Threshold | Rate on $1M Purchase | Tax Amount |
|---|---|---|---|
| New York State | $1M+ | 1.0% | $10,000 |
| New York City | $1M+ | 1.0% (additional) | $10,000 |
| New Jersey | $1M+ | 1.0% | $10,000 |
| Connecticut | $800K+ | 2.25% above threshold | $4,500 on $1M |
| LA (City of LA) | $5M+ (ULA Tax) | 4.0% above $5M | $0 on $1M |
Buying a $1,000,000 condo in NYC: Mansion tax (1%): $10,000. NYC mansion tax (additional 1%): $10,000. NYC mortgage recording tax: $23,800 (if financed). NY title insurance: $4,500. Attorney (both sides): $3,000–$6,000. Total pre-prepaid closing costs: $51,300–$54,300. NYC is consistently one of the most expensive closing-cost markets globally.
Jumbo Loan Closing Costs at $1M
A $1M home with 20% down = $800,000 jumbo loan. Origination (1–1.5%): $8,000–$12,000. Jumbo appraisal (often dual required): $1,400–$2,500. Lender title insurance: $3,500–$6,000. Total lender fees: $15,000–$23,000 before third-party costs and transfer taxes.
Cash Buyer Advantages at $1M
Cash buyers of $1M homes skip $15,000–$23,000 in lender fees and mortgage recording taxes (significant in NY). Cash closing costs: transfer taxes + owner’s title + attorney + recording. In NYC: roughly $15,000–$20,000 for a $1M cash purchase vs. $50,000+ financed. The cash buyer advantage in high-transfer-tax markets is substantial.
Calculate Your Million-Dollar Purchase Closing Costs
Luxury market closing costs require location-specific calculation — get the accurate estimate.