The Tax Has Been Implemented
Last week I mentioned this proposal but now it's official as of Monday, June 30th. Here's what's going on as simply as I can put it.
Any purchases of residential property, and most commercial property, that exceeds a $1,000,000 sale price after July 10, 2025 will have an additional 1% fee charged to the seller of that property.
Prior to this change, buyers were forced to pay a 1% tax on their side, known as the "mansion" or "luxury" tax. Buyers will no longer pay that fee after said date.
If there is already a contract active before July 10, and closes before November 15, the seller will be able to request a rebate of this new tax. The seller will not be able to avoid paying it upfront, however.
It also is a scalable tax and will add an additional percentage (shown below) for every $500,000 of a purchase price starting at $2,000,000. The final tier will be at $3,500,000 and above.
Read More About This Change and Find The Seller Calculator
If you want the break down charts or more information on this, just send me an email.
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