The Numbers at 35 Hudson Yards
Roughly 86% of units at 35 Hudson Yards would owe New York City's new pied-à-terre tax if they qualify as non-primary residences, according to Conquest's analysis of DOF's July 2026 Supplemental Market Value Roll.
The 60-story tower shows 123 of its 143 condominium units with DOF market values above the $1 million threshold that triggers the annual surcharge. Those exposed units would face an average annual bill of $73,400 under the tax that took effect July 1, 2026.
The building exemplifies how the surcharge concentrates in newer luxury developments where second-home ownership and entity structures are common. Unlike prewar co-ops with established primary residents, Hudson Yards condos skew toward the investment and pied-à-terre market the tax was designed to capture.
How the Surcharge Hits New Development
The tax applies flat rates to the full DOF market value once a unit crosses the threshold. For condos and co-ops, that means 4% on market values from $1 million to $3 million, 5.25% from $3 million to $5 million, and 6.5% above $5 million.
Consider a typical 35 Hudson Yards unit with a $2.1 million DOF market value owned through an LLC by a London-based buyer who uses it three weeks per year. The unit falls in the 4% bracket, generating an $84,000 annual surcharge.
The owner's entity structure triggers the law's majority-interest look-through rule. Since the London buyer controls the LLC, DOF examines whether the unit serves as his primary residence. His three-week annual stay fails that test.
The building's concentration of such arrangements means most units above the threshold will likely owe the full surcharge, unlike older buildings where primary residence exemptions provide more shelter.
Entity Ownership and Exemption Challenges
Hudson Yards developments attract entity buyers seeking privacy and liability protection, but the pied-à-terre tax's look-through provisions pierce those structures. When an entity owns a majority interest in a unit, DOF applies the exemption rules to the controlling natural person.
The primary residence exemption requires the unit to serve as the main home of the owner, spouse, or immediate family member as of the January 5 taxable status date. For international buyers using Hudson Yards units as occasional New York bases, this standard proves difficult to meet.
Owners who received DOF's 'You may be subject to...' notices have until September 18, 2026 to file exemption applications. The deadline was extended from the original August dates to give owners more time to document their circumstances.
What Comes Next
The current Phase 1 rates run through June 30, 2028, when the law shifts to Phase 2 with different valuation methods and rate structures. Professional advisors describe Phase 2 as moving toward standardized market valuations and 0.8% to 1.3% rates above a $5 million threshold, though DOF has not finalized those rules.
First surcharge payments come due January 1, 2027, based on the market values and non-primary determinations from the current tax year. Regular property tax abatements do not offset the surcharge.
Citywide, Conquest's analysis shows roughly 24,000 units would owe the surcharge if they qualify as non-primary residences, with Manhattan condos and co-ops representing the largest exposure at an average $68,559 annual bill.
Frequently asked questions
Is my apartment subject to the NYC pied-à-terre tax if it's worth over $1 million?
Your unit is subject to the pied-à-terre tax if its DOF market value exceeds $1 million and it doesn't qualify as your primary residence. The tax applies to condos and co-ops that fail the primary residence test, which requires the unit to serve as the main home of the owner, spouse, or immediate family member as of the January 5 taxable status date.
How much is the pied-à-terre tax on a $2 million condo?
A $2 million condo would face a 4% annual surcharge, resulting in an $80,000 tax bill. The tax applies flat rates to the full DOF market value: 4% on values from $1 million to $3 million, 5.25% from $3 million to $5 million, and 6.5% above $5 million.
Does owning through an LLC protect me from the pied-à-terre tax?
No, owning through an LLC does not protect you from the pied-à-terre tax due to the law's majority-interest look-through rule. When an entity owns a majority interest in a unit, DOF applies the exemption rules to the controlling natural person, so your personal use of the property determines whether you owe the tax.