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Mansion and Transfer Tax by State: The Luxury Real Estate Guide to Every Major Market

Transfer taxes on luxury real estate are no longer a New York and California problem. Eight states plus Washington DC now have some form of elevated transfer tax on high-value properties, and seventeen cities have enacted progressive real estate transfer taxes, up from just six over the previous four decades. A UHNW buyer choosing between markets, or holding properties in multiple states, needs to understand the transfer tax landscape as a material variable in every transaction.

State-by-State: The Luxury Transfer Tax Map

Rates and thresholds are subject to change. Verify current figures with a real estate attorney in the specific jurisdiction before any transaction.

Markets Without a Mansion Tax: Not Forever

Florida, Texas, Nevada, and most Southeast luxury markets currently have no state income tax and no mansion or elevated transfer tax at the state level. These are among the reasons UHNW owners have relocated to these markets or shifted their primary asset purchases there. However, some Florida municipalities have discussed local transfer taxes, and the national trend is clear: the Center on Budget and Policy Priorities explicitly called on more states to adopt luxury transfer taxes in their 2026 legislative sessions. A ten-year hold decision on a Florida luxury property should factor in the probability that the no-transfer-tax status will not persist indefinitely.

Vermont: The Outlier That Luxury Buyers Miss

Vermont deserves specific attention because its transfer tax structure is dramatically more aggressive than most buyers expect. The state rate reaches 1.25% at $10M+, but some Vermont municipalities layer additional local transfer taxes that can push the effective rate to 16% at $5M+ in certain jurisdictions. For buyers considering Stowe, Killington, or other Vermont ski-country luxury markets, the total transfer tax must be confirmed with a Vermont real estate attorney before any offer is made.

Washington State: The Seattle Market Impact

Washington’s Real Estate Excise Tax (REET) hits 3% on sales of $3M to $6M and continues escalating above that. For Seattle, Bellevue, and Eastside luxury buyers and sellers, the REET is a significant closing cost that rivals the NYC mansion tax at comparable price points. On a $5M Seattle transaction, the seller pays $150,000 in REET alone.

What Markets Are Considering Next

Boston and Massachusetts cities have been studying luxury transfer taxes since Chicago’s proposal generated national attention (Chicago voters ultimately rejected it in 2024). Maine, Rhode Island, and New Jersey have been cited as models for further expansion. A statewide proposition in California would restrict municipal transfer taxes, potentially affecting future ULA-style levies in other California cities, but ULA itself is expected to remain in effect pending ongoing legal challenges. See: What Markets Are Adopting Next.

Which state has the highest mansion tax?

Vermont has the highest effective rates in specific municipalities, where local taxes can push the total transfer tax to 16% at $5M+. Los Angeles’s ULA (5.5% above $10.6M) is the most significant for the mainstream luxury market given LA’s transaction volume.

Does Florida have a mansion tax?

No. Florida has no state income tax and no mansion or elevated transfer tax at the state level. Florida luxury transactions pay only documentary stamp tax at $0.70 per $100 statewide. On a $10M Florida sale, the documentary stamp tax is approximately $70,000 — versus $550,000+ in ULA alone for a comparable LA City sale.