Most Units at 35 Hudson Yards Cross the Threshold
Eighty-six percent of units at 35 Hudson Yards would owe New York City's new pied-à-terre tax if they remain 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. The building exemplifies how Hudson Yards' new-development stock faces disproportionate exposure compared to older Manhattan inventory, where primary residence rates run higher and market values cluster closer to the threshold.
Across Chelsea and Hudson Yards ZIP codes 10001 and 10011, roughly 1,700 of 11,300 condo and co-op units exceed the $1 million mark. But newer towers like 35 Hudson Yards concentrate that exposure: where a prewar building might see 30% of units above threshold, luxury new-development projects often push 80% or higher.
Entity Ownership Complicates Exemption Claims
Consider a Hong Kong investor who bought a $2.1 million unit at 35 Hudson Yards through a Delaware LLC in 2023. Under the surcharge's look-through rules for entities, DOF examines whether the beneficial owner uses the unit as a primary residence.
The unit would face a $84,000 annual surcharge—4% of its $2.1 million DOF market value—unless the owner can demonstrate primary residence status. But establishing that claim requires documentation that many international buyers struggle to provide: New York State tax returns showing resident filing status, voter registration, or utility bills spanning the full year.
The surcharge applies based on January 5 taxable status, not time spent in the unit during the year. An owner who splits time between Hong Kong and New York but maintains their primary tax residence abroad would owe the full annual charge regardless of occupancy patterns.
September 18 Deadline for Exemption Applications
DOF extended the exemption application deadline to September 18, 2026, for all property owners who received 'You may be subject to' notices. The extension supersedes earlier August deadlines and applies citywide.
Owners have 30 days from their notice's transmission date to appeal non-primary determinations. First payments come due January 1, 2027, for the fiscal year that began July 1, 2026.
The surcharge runs through June 30, 2031, unless the state legislature extends it. Phase 2 provisions starting July 2028 could adjust rates or thresholds, but those changes remain undefined in current law.
Market Value Base Drives Higher Bills
The surcharge calculates on DOF market value, not the assessed value used for regular property taxes. That distinction matters significantly for new-development condos, where market values often exceed $1 million while assessed values might fall below due to temporary abatements or phase-in schedules.
At buildings like Fifteen Hudson Yards, units with DOF market values around $1.05 million face annual surcharges near $42,000. The flat rate structure means once a unit crosses the $1 million threshold, the 4% rate applies to the full market value.
Manhattan condo and co-op units above threshold average $68,600 in annual surcharges, according to Conquest's analysis. Hudson Yards units typically fall in the $1-3 million band, where the 4% rate applies, though penthouses and larger units can reach the 5.25% or 6.5% brackets.
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's not your primary residence. The tax applies based on your January 5 taxable status, not how much time you spend in the unit during the year.
How much is the pied-à-terre tax on a $2.1 million apartment?
A $2.1 million apartment would face an $84,000 annual surcharge, calculated at 4% of the DOF market value. The tax calculates on DOF market value, not the assessed value used for regular property taxes.
When is the deadline to apply for a pied-à-terre tax exemption?
DOF extended the exemption application deadline to September 18, 2026, for all property owners who received 'You may be subject to' notices. You also have 30 days from your notice's transmission date to appeal non-primary determinations.