Mansion Tax by State 2026: Who Has One, Rates, and Thresholds
Quick Answer
Which US states have a mansion tax? Only five state-level jurisdictions impose a clear graduated luxury transfer tax: New York, New Jersey, Connecticut, Washington State, and Hawaii. California has no statewide mansion tax but six California cities (LA, SF, Santa Monica, Culver City, Berkeley, Oakland) impose local equivalents. Roughly 40 US states have no mansion tax at all. Texas and Florida have no real estate transfer taxes period — the cleanest tax markets for HNW buyers. Rhode Island and New York are exploring annual recurring taxes on $5M+ second homes.
Quick Links to Specific Mansion Taxes
For deep coverage of any specific tax, jump to:
NYC Mansion Tax → NJ Mansion Tax → California (LA ULA) →
Mansion Tax / Luxury Transfer Tax by US State (2026)
| State | Has Mansion Tax? | Top Rate | Threshold |
|---|---|---|---|
| Alabama | No | — | — |
| Alaska | No | — | — |
| Arizona | No | — | — |
| Arkansas | No | — | — |
| California | Local only (LA, SF, others) | 4-6% | City-specific |
| Colorado | No | — | — |
| Connecticut | Yes (state-level) | 2.25% | $2.5M+ |
| Delaware | Flat (4%, no luxury tier) | — | — |
| Florida | No | — | — |
| Georgia | No | — | — |
| Hawaii | Yes (state-level) | 1.25% | $10M+ (non-occ) |
| Idaho | No (no transfer tax) | — | — |
| Illinois | Local only (Chicago RETT) | ~1.5-3% | Chicago-specific |
| Indiana | No | — | — |
| Iowa | No | — | — |
| Kansas | No (no transfer tax) | — | — |
| Kentucky | No | — | — |
| Louisiana | No (no transfer tax) | — | — |
| Maine | No | — | — |
| Maryland | No (flat transfer) | — | — |
| Massachusetts | Local-option (since 2024) | Up to 2% | City-specific |
| Michigan | No | — | — |
| Minnesota | No | — | — |
| Mississippi | No (no transfer tax) | — | — |
| Missouri | No (no transfer tax) | — | — |
| Montana | No (no transfer tax) | — | — |
| Nebraska | No | — | — |
| Nevada | No | — | — |
| New Hampshire | No | — | — |
| New Jersey | Yes (state-level) | 3.5% | $3.5M+ |
| New Mexico | No (no transfer tax) | — | — |
| New York | Yes (state-level) | 3.9% | $25M+ |
| North Carolina | No | — | — |
| North Dakota | No (no transfer tax) | — | — |
| Ohio | No | — | — |
| Oklahoma | No | — | — |
| Oregon | No (no transfer tax) | — | — |
| Pennsylvania | No (flat 1% state + local) | — | — |
| Rhode Island | Annual second-home tax (2025) | Annual | $5M+ second homes |
| South Carolina | No | — | — |
| South Dakota | No | — | — |
| Tennessee | No | — | — |
| Texas | No (no transfer tax) | — | — |
| Utah | No | — | — |
| Vermont | No | — | — |
| Virginia | No | — | — |
| Washington | Yes (state-level REET) | 3.0% | $3.025M+ |
| West Virginia | No | — | — |
| Wisconsin | No | — | — |
| Wyoming | No (no transfer tax) | — | — |
| DC | Yes (recordation) | ~3% | $5M+ |
The Headline
Only five US states (NY, NJ, CT, WA, HI) have a state-level mansion or luxury transfer tax. California has only local equivalents (LA, SF, etc.). Roughly 40 states have no mansion tax at all. Texas, Florida, and Nevada — all popular HNW relocation destinations — have no luxury transfer tax. Combined with their lack of state income tax, this makes them the cleanest US markets for HNW buyers selling out of high-tax coastal states.
New York — Buyer Pays 1% to 3.9%
The original US mansion tax. Introduced 1989 as a flat 1% buyer-paid fee on residential sales of $1 million or more. Expanded into a progressive 1%–3.9% tier system in 2019. Applies to condos, co-ops, townhouses, and single-family homes throughout New York State (NYC concentrates most volume).
Key tiers: 1% ($1M-$2M), 1.25% ($2M-$3M), 1.5% ($3M-$5M), 2.25% ($5M-$10M), 3.25% ($10M-$15M), 3.5% ($15M-$20M), 3.75% ($20M-$25M), 3.9% ($25M+). Tax applies to the full purchase price, not just the portion above the threshold.
Side: Buyer pays at closing.
Recent: Governor Hochul has proposed an additional annual surcharge on $5M+ second homes (separate from the mansion tax). Status as of mid-2026: proposed, not yet enacted.
For a complete breakdown including co-op vs condo, second-home surcharge, and pricing strategies: read the full NYC Mansion Tax guide →
New Jersey — Seller Pays 1% to 3.5% (New July 2025)
New Jersey rewrote its mansion tax in 2025. Effective July 10, 2025, the obligation shifted from the buyer to the seller and the flat 1% was replaced with progressive tiers up to 3.5%.
Tiers: 1% ($1M-$2M), 2% ($2M-$2.5M), 2.5% ($2.5M-$3M), 3% ($3M-$3.5M), 3.5% ($3.5M+). Applies to commercial and residential. Each rate applies to the entire sale price.
Side: Seller pays at deed recording.
Practical impact: A $4M NJ sale generates $140,000 in mansion tax vs. $40,000 under the prior structure — a $100,000 increase, now landing on the seller instead of the buyer. The state simultaneously closed the entity-transfer loophole via amendments to the Controlling Interest Transfer Tax.
For full coverage including the Realty Transfer Fee, exemptions, and NJ vs NYC comparison: read the full NJ Mansion Tax guide →
California — No State Tax, but LA's Measure ULA Is the Steepest in the US
California has no statewide mansion tax. Six California cities impose local equivalents, with Los Angeles's Measure ULA being the largest by volume and dollar burden:
- Los Angeles (Measure ULA): 4% on sales over $5.3M, 5.5% on sales over $10.6M (FY2026). Seller pays.
- San Francisco: Graduated up to 6% on sales over $25M — the single highest-rate transfer tax in the US.
- Santa Monica: 5.6% on sales over $8M.
- Culver City: 4% on sales over $10M.
- Berkeley / Oakland: Graduated city transfer taxes reaching 2-3% at luxury price points.
Beverly Hills, Newport Beach, Malibu, La Jolla, and most of California have only the standard county documentary transfer tax (~$0.11 per $100, effectively 0.11%). A $20M sale in Beverly Hills costs $22,000 in transfer tax; the same sale in LA city limits costs $1.1M in ULA alone.
2026 ballot challenge: The Howard Jarvis Taxpayers Association has qualified a statewide measure that could constrain or eliminate ULA. Status pending the 2026 election.
For full coverage including Measure ULA mechanics, exemptions, and city-by-city CA breakdown: read the full California Mansion Tax guide →
Connecticut — Seller Pays Up to 2.25%
Connecticut's state real estate conveyance tax is graduated:
- 0.75% on the first $800,000 of sale price.
- 1.25% on the portion from $800,001 to $2,500,000.
- 2.25% on any portion above $2,500,000.
The 2.25% top rate — added in 2020 — is widely referred to as Connecticut's "mansion tax." Unlike NY and NJ, Connecticut's structure is true graduated (each portion taxed at its tier rate), not "cliff" rates that apply to the entire sale price.
Local conveyance tax: Most CT municipalities add 0.25%. "Targeted investment communities" (Bridgeport, Hartford, New Haven, Norwalk, Stamford, Waterbury, and several others) can charge up to 0.50%.
Side: Seller pays.
Tax credit: CT residents who sell a high-value home but remain residents can recover the additional 1.0% (above the 1.25% rate) as a state income tax credit spread over three years — partially mitigating the tax for long-term Connecticut residents.
Washington State — Seller Pays REET Up to 3.0%
Washington's Real Estate Excise Tax (REET) is a graduated seller-paid transfer tax:
- 1.10% on the first $525,000.
- 1.28% on the portion from $525,001 to $1,525,000.
- 2.75% on the portion from $1,525,001 to $3,025,000.
- 3.00% on any portion above $3,025,000.
True graduated structure — only the portion in each tier pays that rate. Cities and counties can add up to 0.50% additional local REET. Timberland and agricultural land are taxed at a flat 1.28% regardless of price.
Seattle's high-end market (Madison Park, Madrona, Medina — though Medina is technically a separate city) pays meaningfully under WA's REET structure. A $5 million Seattle sale generates approximately $115,000 in state REET alone.
Hawaii — Graduated Conveyance Tax with Non-Resident Surcharge
Hawaii's conveyance tax has two rate schedules — one for buyers who will claim a county homeowner exemption (i.e., owner-occupied primary residences) and a higher schedule for non-occupied / second-home / investment purchases:
| Sale Price | Owner-Occupied | Non-Occupied / Second Home |
|---|---|---|
| Up to $600,000 | 0.10% ($0.10 per $100) | 0.15% |
| $600K – $1M | 0.20% | 0.25% |
| $1M – $2M | 0.30% | 0.40% |
| $2M – $4M | 0.50% | 0.60% |
| $4M – $6M | 0.70% | 0.85% |
| $6M – $10M | 0.90% | 1.10% |
| $10M and above | 1.00% | 1.25% |
Hawaii is one of the few US jurisdictions that explicitly charges higher transfer tax for non-resident or non-owner-occupant buyers — a structural recognition that high-end Hawaii buyers are disproportionately mainland or international investors.
Other Notable Cases
Washington DC
DC's recordation tax reaches approximately 3% on sales over $5M, making it effectively a mansion tax. Combined recordation + transfer is paid by buyer and seller respectively.
Illinois / Chicago
Illinois has no state mansion tax, but Chicago's Real Estate Transfer Tax (RETT) was expanded in 2024 to graduated rates topping at 3% on sales over $1.5M (Mayor Johnson's "Bring Chicago Home" measure). The expanded structure has faced legal challenges and partial repeal efforts.
Massachusetts
Massachusetts authorized local-option mansion taxes via the 2024 HERO Act. Several cities (Boston, Cambridge, Somerville among them) have evaluated implementing local 1-2% mansion taxes on sales above $1M-$2M. Few have implemented as of mid-2026, but the legal framework is in place.
Rhode Island
Rhode Island enacted in 2025 one of the first US annual recurring taxes on luxury second homes — a surcharge on properties valued $5M+ and held for non-primary use. New York's Hochul-Mamdani proposal is modeled on the RI legislation.
Florida, Texas, Nevada, Tennessee, Wyoming — The Zero States
None of these states has a mansion tax or luxury transfer surcharge. Florida charges a flat ~0.7% documentary stamp tax. Texas, Nevada, Wyoming have no state real estate transfer tax at all. Combined with their lack of state income tax, this makes them the cleanest US tax markets for HNW buyers relocating from high-tax states. The HNW migration from NY, NJ, CA, and CT to FL, TX, and NV over the past decade is partly explained by exactly this tax math.
The Trend: More States Adding, Few Removing
The clear directional trend over the past 5 years has been more jurisdictions adding mansion-style taxes, not removing them. New Jersey enacted progressive tiers in 2025. California's LA, SF, Santa Monica, and Culver City all added or expanded their local taxes in 2022-2025. Chicago expanded in 2024. Rhode Island created its annual second-home surcharge in 2025. Massachusetts authorized local options in 2024. New York is debating an annual second-home surcharge for 2026.
The only meaningful counter-pressure is the 2026 California ballot challenge to Measure ULA (and to local transfer taxes more broadly), which if passed could roll back LA's and other CA cities' transfer taxes. The result is uncertain, and even if the measure passes, it would only affect California.
For HNW buyers planning multi-year holds, the political risk of new mansion taxes — particularly recurring ones on second homes — is now a real factor in market choice. Markets with no luxury transfer tax and no state income tax (FL, TX, NV) are insulated from this risk in a way that NY, NJ, CA, and CT are not.
How Luxury Price Drops Tracks This
At Luxury Price Drops, we monitor real-time price reductions across major US luxury markets — including NYC, Miami, and Los Angeles — plus international markets. Buyers comparing the after-tax math across markets can use our daily-updated data to identify properties where price reductions have meaningfully offset transfer tax exposure.
Compare Live Luxury Price Drops Across US Markets
Live, daily-updated price reductions on luxury properties in New York, Miami, Los Angeles, and beyond.
Frequently Asked Questions
Which US states have a mansion tax?
Five US jurisdictions impose a clear "mansion-style" graduated luxury transfer tax: New York (state, 1-3.9% on residential sales over $1M), New Jersey (state, 1-3.5% on sales over $1M), Connecticut (state, 0.75-2.25% with the top tier kicking in at $2.5M), Washington State (REET, 1.10-3.0% on sales over $3M), and Hawaii (graduated conveyance up to 1.25% on sales over $10M). California has no statewide mansion tax, but Los Angeles, San Francisco, Santa Monica, Culver City, Berkeley, and Oakland impose local equivalents. Most other US states have no mansion tax — only standard transfer taxes that don't escalate at luxury price points.
Which US states have NO mansion tax?
Roughly 40 US states have no mansion tax or luxury transfer surcharge. The most notable: Texas (no transfer tax at all), Florida (no mansion tax, popular for HNW relocation), Nevada (no mansion tax), Arizona, Colorado, Georgia, Massachusetts (no statewide, though some local options exist), North Carolina, Pennsylvania (flat ~1% state + local, no luxury tier), Tennessee, and Wyoming. For HNW buyers, Texas and Florida are particularly notable — both have no state income tax and no mansion tax.
What is the highest mansion tax in the US?
San Francisco has the highest single-jurisdiction transfer tax rate in the US: 6% on sales above $25 million. Los Angeles (Measure ULA) is next at 5.5% on sales above ~$10.6M, followed by Santa Monica at 5.6% on sales above $8M. Among state-level mansion taxes, New York's 3.9% (on $25M+ residential) is the highest, followed by New Jersey's 3.5% (on $3.5M+) and Washington State's 3.0% REET top rate (on $3.025M+).
Does Florida have a mansion tax?
No. Florida has no state mansion tax and no county-level luxury transfer surcharge. Florida's documentary stamp tax on real estate transfers is a flat $0.70 per $100 of consideration (effectively 0.7%), with a slight reduction in Miami-Dade. A $10 million Florida sale pays approximately $70,000 in documentary stamp tax, regardless of price tier. This — combined with no state income tax — is a meaningful driver of HNW relocation from high-tax states like New York, California, and New Jersey to Miami, Palm Beach, and Naples.
Does Texas have a mansion tax?
No. Texas has no state-level real estate transfer tax of any kind, mansion or otherwise. A $20 million sale in Austin, Houston, Dallas, or Highland Park costs nothing in state transfer tax. Combined with Texas's lack of state income tax, this makes Texas one of the most tax-favorable US destinations for HNW buyers selling out of high-tax markets.
Does Connecticut have a mansion tax?
Yes. Connecticut's real estate conveyance tax is graduated: 0.75% on the first $800,000, 1.25% from $800,000 to $2,500,000, and 2.25% on any portion above $2,500,000. The 2.25% top rate has been called Connecticut's "mansion tax" since it was added in 2020. CT-resident sellers can recover the additional 1.0% (above the 1.25% rate) through state income tax credits spread over three years, partially mitigating the tax for those who stay in the state.
Does Washington State have a mansion tax?
Yes. Washington's Real Estate Excise Tax (REET) is graduated: 1.10% on the first $525,000, 1.28% from $525,001 to $1,525,000, 2.75% from $1,525,001 to $3,025,000, and 3.00% on amounts above $3,025,000. Seller pays. Cities and counties may add up to 0.50% additional local REET. A $5 million Seattle sale generates approximately $115,000 in state REET plus local additions.
Does Hawaii have a mansion tax?
Hawaii has a graduated conveyance tax that functions like a mild mansion tax. Rates range from $0.10 per $100 (0.1%) on sales under $600,000 up to $1.00 per $100 (1.0%) on sales over $10 million for owner-occupied buyers. Non-owner-occupied buyers pay higher rates: from $0.15 per $100 up to $1.25 per $100 (1.25%) on sales over $10 million. This is one of the few mansion taxes with explicit higher rates for non-resident or non-occupant buyers.
What states have proposed mansion taxes that aren't yet law?
As of mid-2026: New York is considering a recurring annual surcharge on $5M+ second homes (the Hochul-Mamdani proposal). Rhode Island enacted a similar second-home tax in 2025 — among the first US jurisdictions to tax non-primary luxury homes annually rather than only at transfer. Massachusetts municipalities can now opt into local-option mansion taxes under recent state authorization, though few have implemented yet. Several California cities are evaluating their own ULA-style measures. The trend is clear: state and local governments are increasingly looking at luxury real estate as a politically attractive tax base.
Updated: June 2026 · State and local transfer taxes change frequently. For specific transactions, consult a real estate attorney licensed in the jurisdiction where the property is located.