The short answer: a condo owes the surcharge only if its DOF market value — the "Market Value" line on the January NOPV, not the sale price — exceeds $1,000,000 AND nobody qualifying primarily lives there. Rates are flat on the full value: 4% ($1M–$3M), 5.25% ($3M–$5M), 6.5% above. Exemption applications were due September 18, 2026.
The number that decides — and why it's lower than you think
DOF values condos by an income approach (RPTL §581), which lands well below market price for most buildings. A condo bought for $1.5M frequently carries a DOF value under $1M — no surcharge at all under Phase 1. That cuts the other way too: never assume you're over the line from your purchase price, and never assume you're under it in buildings where DOF values run high. On the roll, the median exposed condo across Manhattan's neighborhoods runs $1.2M–$2.6M DOF — see the neighborhood pages for yours, or your building's own page in the database.
What a taxable condo actually pays
| DOF market value | Rate on the FULL value | Annual surcharge |
|---|---|---|
| Under $1,000,000 | 0% | $0 |
| $1.4M | 4% | $56,000 |
| $2.4M | 4% | $96,000 |
| $3.1M | 5.25% | $162,750 |
| $6M | 6.5% | $390,000 |
Three condo-specific facts: your 421-a/condo abatement and STAR do not offset the surcharge (the statute stacks it on top); the rates are flat, so a dollar over a band edge moves your entire value to the higher rate; and Phase 2 (from July 1, 2028) re-bases condos on comparable sales with a $5M threshold at 0.8%–1.3% — a large share of Phase-1 payers drop out entirely then, which matters for the keep-rent-sell decision.
If your condo is over the line
The three exits — primary occupancy, immediate-family occupancy, a bona fide 12-month lease — are detailed in the exemptions guide, with the failure modes (LLCs, listings-without-leases, "almost half the year") spelled out. If a notice already arrived, deadlines outrank strategy: the playbook.
Questions owners ask
Does my NYC condo owe the pied-à-terre tax?
Only if two things are true: its DOF market value (the NOPV 'Market Value' line — an income-approach figure usually well below sale price) exceeds $1,000,000, and no qualifying person — owner, immediate family member, or 12-month tenant — primarily lives there. Many condos bought for $1.5M+ carry DOF values under $1M and owe nothing in Phase 1.
How much is the surcharge on a $2 million condo?
If the $2M figure is the DOF market value and the condo is a non-primary residence: 4% of the full $2,000,000 = $80,000 per year during Phase 1. If $2M is the purchase price, the DOF value is likely lower — check the official number before assuming.
Do condo abatements reduce the pied-à-terre surcharge?
No. The statute provides that existing abatements, credits and exemptions do not apply against the surcharge — it stacks on top of the regular bill. The only exits are the occupancy-based exemptions or Phase 2's higher $5M threshold from July 2028.
Is your condo actually over $1M — officially?
Free emailed report: your unit's exact DOF market value, the surcharge test, and your realistic options. Usually within the hour.
Check My Unit — FreeDisclaimer. This page is educational information from Conquest, a licensed New York real estate brokerage. It is not legal, tax, or accounting advice, and no advisory relationship is created by reading it. Deadlines and figures reflect DOF's published rules and roll as of the "last updated" date above.