Will New York add a tax on all-cash home sales over $1 million?

New York lawmakers are weighing a tax on high-end all-cash purchases

New York state lawmakers are drafting a budget proposal that would target certain luxury home transactions—specifically, a new one-percent tax on all-cash home purchases above $1 million.

The plan is aimed at reshaping how costly real estate deals contribute to state revenue, and it arrives as New York continues to scrutinize both affordability pressures and the impact of investors using all-cash purchases to move quickly.

How the proposal would work (as described)

• Applies to: all-cash purchases of homes above $1 million
• Tax rate: one percent

The policy is significant because “cash purchase” markets can move differently from mortgage-backed transactions—buyers may be able to close faster and outcompete others, which can influence pricing and availability.

At this stage, the information available is limited to lawmakers drafting the proposal; it doesn’t spell out whether exceptions would exist (for example, transfers within families) or how enforcement would be handled.

If enacted, homeowners and buyers considering high-priced purchases should expect new transaction costs to factor into offer strategy and closing calculations. Sellers would also need to understand how the added cost could affect buyer demand, especially among investors or out-of-state buyers who often rely on cash deals.