Signed into law May 28, 2026 · In effect since July 1, 2026

The NYC Pied-à-Terre Tax Is Here.

After a decade of failed attempts, New York now taxes non-primary residences — up to 6.5% of DOF market value, every year. Here is exactly how it works, and the three legal ways out.

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We analyzed all 959,710 records on the City's July 2026 valuation roll — read the findings.Data source: NYC DOF · July 2026 roll

Last updated July 31, 2026 · Reviewed by a licensed New York real estate broker · Updated as DOF issues guidance

Live — NYC Department of Finance roll 2,236 buildings, ranked by exposure 959,710 units · every building ranked See every building →

Estimated surcharge liability accrued by NYC second-home owners since July 1, 2026

$0

Projection based on the NYC Comptroller's estimate of ≈$500 million per year in pied-à-terre surcharge revenue, accruing continuously from the July 1, 2026 effective date. Illustrative, not an official figure.

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Check your building's DOF market value

The surcharge is tested against your DOF market value — the "Market Value" line on your Notice of Property Value, a number most owners have never looked at. It's higher than your assessed value, so far more owners land over the $1M line than realize. Enter your address and we'll pull the official Department of Finance figures, run the surcharge test, and email you a report like the one shown here — usually within the hour, always free.

Real example (FY 2026–27 roll): a TriBeCa condo at 56 Leonard St carries a DOF market value of $1,390,768 — over the $1M threshold. For a non-primary owner the surcharge applies to that full market value: roughly 4% × $1,390,768 ≈ $55,600 every year. Its assessed value ($625,846, or 45% of market) is not the tax base — assuming otherwise is a common and costly misconception. The only way to know where you stand is to look at the market-value line.

Market Value & Pied-à-Terre
Tax Exposure ReportCONQUEST
56 Leonard Street, Apt 6WTax Class 2 · R4
DOF market value (surcharge base)$1,390,768
DOF assessed value (45% — not the base)$625,846
Surcharge test — $1M thresholdOVER — ~$55,600 / YEAR
Est. open-market value~$4,500,000
View the full sample report (PDF) →

Your report, free

✓ Now live — official DOF unit values

Co-op owners: no more guessing your share percentage. The City's official July 2026 supplemental roll is loaded into our calculator — DOF's own published value for 36,677 individual co-op units across 764 buildings (essentially all of Manhattan). If your unit is one of them, your report is computed from DOF's exact number for your specific apartment — the very value your surcharge is based on — and you can leave the ownership % blank. If your building has no published unit values, we fall back to the statutory method (building value × your share %), so enter your % if you have it.

Free service from Conquest using official NYC Dept. of Finance data. By submitting you agree to be contacted about your property. We never sell your information.

What happened

A tax ten years in the making is now law

A note on names: the statute never says "pied-à-terre tax" — officially it is an annual surcharge on non-primary residences. "Pied-à-terre tax" is the name the press and Albany have used since 2014, and "second home tax" is the same thing in plainer English. All three refer to the law on this page.

On May 27, 2026 the New York State Legislature passed an annual surcharge on New York City homes that are not a primary residence — the "pied-à-terre tax" first proposed back in 2014. Governor Hochul signed it on May 28, 2026 as part of the FY 2026–27 state budget. It applies citywide from July 1, 2026 and sunsets June 30, 2031 unless renewed.

The surcharge targets Class 1 homes (1–3 family) worth more than $5 million and Class 2 condominium and co-op units with a Department of Finance market value above $1 million. It is billed with your property taxes, and — critically — no abatement, credit or exemption you currently receive will offset it.

If you own a Manhattan apartment you use a few weeks a year, a Brooklyn brownstone kept for family visits, or an investment unit sitting vacant between uses, this law is aimed at you. The NYC Comptroller projects it will raise roughly $500 million per year.

Signed
May 28, 2026
Effective
July 1, 2026
DOF notices by
Aug 30, 2026
First payment
Jan 1, 2027
Top condo rate
6.5% of DOF market value
Sunsets
June 30, 2031

The numbers

Rates & thresholds

Condos & co-ops — Phase 1 (Jul 1, 2026 – Jun 30, 2028)
DOF market valueAnnual surcharge
Under $1,000,000Exempt
$1M – $3M4%
$3M – $5M5.25%
Above $5M6.5%

The most misunderstood detail in the entire law: these brackets use the Department of Finance market value — the "Market Value" line on your NOPV, an income-approach figure that is higher than your assessed value (which is 45% of it), though for condos still often below actual sale price. The rate applies to the full market value once you cross a threshold, so the $1M line catches many condos whose owners assume they're under it. Do not guess. We will look it up for you, free.

1–3 family homes (DOF market value)
DOF market valueAnnual surcharge
Under $5,000,000No surcharge
$5M – $15M0.8%
$15M – $25M1.05%
Above $25M1.3%

Like the condo schedule, this is a flat surcharge: once market value crosses $5M, the bracket rate applies to the full DOF market value, not just the amount above $5M.

Phase 2 — July 1, 2028: condos and co-ops are re-valued on comparable sales (closer to true market) and move to the $5M-threshold, 0.8–1.3% schedule shown above. Owners just under today's thresholds may be pulled in — and vice versa. Exposure is worth re-checking annually.

Who owes it

"Primary residence" is the whole game

The surcharge applies unless the home is occupied more than half the year as the primary residence of:

① a covered owner, or ② an immediate family member of an owner — spouse, child, sibling, parent, grandparent or grandchild — or ③ a tenant under an arm's-length lease of at least 12 months who uses it as their primary residence.

LLCs and trusts do not shield you. The law looks through entities: trust beneficial owners and majority holders of LLCs, partnerships and corporations count as covered owners. But beware — where no individual owns a majority interest (common in family LLCs split among siblings), the property can be surcharged no matter who lives there, unless a qualifying tenant occupies it.

Vacant doesn't count. A unit "available for rent" without an actual qualifying lease is taxable. Neither do short stays, seasonal use, or Airbnb-style rentals.

Key dates

What happens next

  1. July 1, 2026Surcharge in effect for fiscal year 2026–27.
  2. By August 30, 2026Department of Finance mails initial non-primary-residence notices to owners it believes are covered. If you get one and the home is a primary residence, you can rebut with documentation — e.g. a tax return showing the address, or a qualifying 12-month lease.
  3. January 1, 2027First year's surcharge due, collected with your property tax statement. Enforced like real property taxes — liens included.
  4. July 1, 2028Phase 2: condos and co-ops shift to the market-value model.
  5. June 30, 2031Scheduled sunset, unless Albany extends it.

Your options

Three legal ways out — and one expensive default

Option 1Make it primary

You — or an immediate family member — occupy the home more than half the year as a primary residence. Requires real documentation (tax filings, DMV, voter registration). Changes your state/city tax picture; coordinate with your CPA.

Option 2Rent it for 12+ months

An arm's-length lease of at least one year to a tenant who makes it their primary residence eliminates the surcharge and produces income. In today's record-rent market this often flips the unit from a liability to a yield. We lease it, vet the tenant, and paper it correctly.

Option 3Sell

If the unit no longer earns its keep, a recurring 4–6.5% of DOF market value changes the math of holding. A senior Conquest agent will give you an honest, data-driven read on what your unit trades for right now — and whether selling beats leasing.

The defaultDo nothing

Pay the surcharge every year, on top of property tax, common charges and insurance — with no abatements applied against it. For most owners this is the worst option on the board.

Estimate it

Surcharge calculator

A quick estimate of your annual exposure under Phase 1. For condos and co-ops, enter the DOF market value — the "Market Value" line on your Notice of Property Value (look yours up at nyc.gov/finance) — not the assessed value, and not your sale price.

This estimate applies the bracket rate to your full DOF market value — the flat structure the statute sets out (Tax Law §1353). The surcharge is on the DOF "Market Value" line (not the assessed value, not your sale price) and only applies to non-primary residences. We'll confirm your actual number in the free review — not tax advice.

In Phase 2 the surcharge is re-based on comparable sales — closer to your unit's true market value — with a $5M threshold and 0.8%–1.3% rates. Your Phase-2 bill can be higher or lower than Phase 1. Pick your estimated market value (optional) to see where you'd land:

Free exposure review

Find out exactly where you stand

Tell us the building and we'll come back to you — usually same day — with:

① your unit's actual DOF market value and whether the surcharge applies, ② your estimated annual surcharge for FY 2026–27 and under Phase 2, ③ a candid rent vs. sell analysis from a senior Conquest agent: what the unit would lease for on a qualifying 12-month lease, what it would sell for today, and which path leaves you further ahead.

No fee, no obligation, no listing pitch unless you ask for one. Prefer to talk? +1 (646) 480-6095.

By submitting you agree to be contacted by Conquest about your property. We never sell your information.

Questions owners are asking

Pied-à-terre tax FAQ

Is this actually law, or another proposal that will die in Albany?
It is law. The Legislature passed it May 27, 2026; Governor Hochul signed it May 28, 2026 within the FY 2026–27 budget. It has been in effect citywide since July 1, 2026, sunsetting June 30, 2031 unless extended.
My condo cost $2.4M — am I over the $1M threshold?
Very likely yes. The condo/co-op threshold uses the DOF market value — the "Market Value" line on your Notice of Property Value, not the assessed value and not your sale price. A condo that cost $2.4M almost always has a DOF market value over $1M, so it is exposed if it isn't a primary residence. Check your NOPV, or ask us and we'll pull it for you the same day.
Are the rates marginal like income tax, or does one rate hit my whole value?
The statute's rate table is genuinely ambiguous — it can be read two ways. A marginal reading taxes each slice of value at its own band's rate, the way federal income tax works. A flat reading applies your band's single rate to your entire DOF market value — which creates a "cliff" at every band edge, where one extra dollar of value moves your whole base onto a higher rate. The gap is not academic: on a $3.1M condo the flat reading yields $162,750 (5.25% of the full value) while the marginal reading yields $85,250 — nearly double. Our calculator and reports use the flat reading, which our counsel has confirmed as the sound, conservative interpretation — so if DOF ultimately administers the table marginally, real bills would come in lower than our figure, never higher. If your value sits near a band edge, that is exactly when a professional review pays for itself.
I own through an LLC. Am I safe?
No. The law attributes ownership through LLCs, partnerships, corporations and trusts. And if no single person holds a majority of the entity, the unit can be taxed regardless of who lives there — unless a qualifying tenant occupies it. Multi-member family LLCs should review their structure now.
My LLC is owned by another LLC (or a trust). How does the law read that?
The statute looks through entities to the people behind them, and two structural points matter. First, the analysis runs on the entire interest the entity holds — entity ownership is not treated as co-ownership among the members. Second, tiered structures are disregarded: an LLC owned by another LLC, a holding company or a trust adds no extra layer of protection — the look-through continues until it reaches natural persons. This is a description of how the statute reads, not legal advice; entity and trust questions are exactly where you want your attorney, because membership percentages, trust terms and occupancy each change the outcome.
My daughter lives in the apartment. Do I owe the surcharge?
If she occupies it more than half the year as her primary residence, no — children are "immediate family members" under the law, as are spouses, siblings, parents, grandparents and grandchildren. Keep documentation.
What if the unit is listed for rent but empty?
Taxable. The exemption requires an actual arm's-length lease of at least 12 months to a tenant using it as a primary residence — not availability, not intent. This is a strong argument for leasing sooner rather than later.
Do my condo abatement or STAR benefits reduce the surcharge?
No. The statute says existing abatements, credits and exemptions do not apply against the surcharge. It stacks on top of your current bill.
What is the deadline on my DOF letter? (August 21 vs August 24)
If you received a DOF letter and want to file a surcharge exemption application, DOF's official non-primary residence surcharge page lists two deadlines: August 21, 2026 for residential homes and condos and August 24, 2026 for cooperative units. But here is the line that matters: follow the date printed on your letter — it governs. If your notice shows a different date than anything you read online, including this page, the letter controls. Missing the window means the surcharge is billed as assessed, so don't sit on it.
What happens if I ignore the DOF notice?
The surcharge is billed and enforced like real property tax — interest and, ultimately, lien enforcement. If the notice is wrong, rebut it with proof of primary residence (tax return showing the address, or a qualifying lease). Deadlines will be on the notice; don't sit on it.
Will renting my apartment for a year really eliminate the tax?
Yes — a bona fide arm's-length lease of at least 12 months to a tenant who makes it their primary residence takes the unit out of the surcharge, and Manhattan rents are at or near record levels. We can tell you what your unit would fetch within a day.
Is it better to sell before January 1, 2027?
It depends on your DOF market value, basis, and how you use the home. For some owners the recurring surcharge meaningfully changes the hold math; for others a lease solves it. That's exactly what the free review answers — with numbers, not vibes.

Deep dives

The story behind the tax

Sources

Primary sources & further reading

NY Governor's Office — Pied-à-terre tax announcement
NYC Comptroller — The Pied-à-Terre Tax and Its Potential Revenues
Dechert LLP — New York City Imposes Pied-à-Terre Tax (June 2026)
Katten Muchin Rosenman LLP — NYC Enacts Annual "Pied-à-Terre Tax" on Second Homes
NYC Dept. of Finance — Property value lookup (NOPV / assessed value)

This page is educational information from a licensed real estate brokerage, current as of July 31, 2026. It is not legal, tax or accounting advice — consult your attorney or CPA on your specific facts. We update this page as DOF issues implementation guidance.

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