New York Proposes 1% Tax on All-Cash Home Purchases Over $1 Million
Lawmakers in New York state are introducing a one-percent tax on cash home transactions exceeding $1 million, eliminating the existing exemption for cash buyers. This adjustment could yield approximately $160 million for New York City, with possibilities for implementation in the suburbs and Hudson Valley. In the city, cash purchases made up 60 percent of sales, while 90 percent of deals over $3 million were cash transactions. Furthermore, a proposed pied-à-terre tax targeting properties valued at $5 million or more, supported by Governor Kathy Hochul and Mayor Zohran Mamdani, aims to raise $500 million each year. Nevertheless, the luxury market in New York remains robust, with the wealth of the top one percent surpassing $50 trillion.
Key facts
- New York state lawmakers propose a 1% tax on all-cash home purchases over $1 million.
- Currently, cash buyers are exempt from the one-time state tax at closing.
- The tax could generate $160 million in New York City alone.
- Cash deals account for 60% of city sales and 90% of transactions above $3 million.
- A pied-à-terre tax is also proposed for properties valued at $5 million or more not used as primary residences.
- Governor Kathy Hochul and Mayor Zohran Mamdani back the pied-à-terre tax.
- The pied-à-terre tax could affect 10,000 properties and generate $500 million annually.
- New York had the nation's top-performing housing market according to the Federal Reserve.
Entities
Institutions
- Bloomberg
- Center for New York City Neighborhoods
- The Hollywood Reporter
- Federal Reserve
- Wall Street Journal
- Robb Report
Locations
- New York
- New York City
- Hamptons
- Hudson Valley
- Los Angeles
- Colorado
- Aspen
- Santa Ynez
- Paris
- France