A buyer purchases a $2,400,000 penthouse in New York City. In addition to the 1% state mansion tax, NYC imposes an additional mansion tax of 1.25% on properties over $2 million. What is the total mansion tax due?
Correct Answer
C) $54,000
The buyer pays both the state mansion tax (1%) and the additional NYC mansion tax (1.25% for properties over $2M). State tax: $2,400,000 × 1% = $24,000. NYC additional tax: $2,400,000 × 1.25% = $30,000. Total: $24,000 + $30,000 = $54,000.
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