What value does the surcharge actually use?
The NYC pied-à-terre surcharge applies to DOF market value, not assessed value. The Department of Finance's adopted rules state explicitly: 'Because the surcharge is based on market value, not assessed value, DOF notes that these rolls are required to include the applicable market values of properties, not assessed values.'
For condos and co-ops, assessed value equals 45% of DOF market value. Owners who calculate their exposure using the assessed value figure from their property tax bill understate their actual surcharge by more than half.
DOF market value appears on the 'Market Value' line of your Notice of Property Value. This figure—not the smaller assessed value used for regular property taxes—determines both whether you owe the surcharge and how much you pay.
How much does this mistake cost at $5 million?
A condo with $5 million DOF market value falls in the 5.25% bracket for fiscal years 2027-2028. The correct annual surcharge: $262,500.
That same unit's assessed value: $2.25 million. An owner who mistakenly applies the 5.25% rate to assessed value calculates $118,125 annually.
The annual understatement: $144,375. Over Phase 1's two fiscal years, this assessed-value mistake costs $288,750 in unexpected surcharge bills.
Conquest's analysis of DOF's July 2026 Supplemental Market Value Roll shows roughly 17,000 Manhattan condos and co-ops would owe the surcharge if they serve as non-primary residences. The median surcharge: $53,665 annually.
Why do so many sources get this wrong?
Most property owners only see assessed value on their regular tax bills. Professional commentary often describes the surcharge as applying to 'assessed value' because that's the familiar term.
The adopted DOF rules clarify the distinction: 'State law provides that phase one market values for purposes of the surcharge are based on DOF market values calculated for real property tax purposes.' The surcharge calculation uses 'the product of a surcharge rate established by statute and the market value of the applicable property.'
Even reputable law firms have published summaries stating the Phase 1 base is assessed value. The controlling text governs over secondary sources.
What rates apply to which values?
Phase 1 condo and co-op rates apply to DOF market value: 4% on $1-3 million, 5.25% on $3-5 million, 6.5% above $5 million. These are flat rates—once market value clears a threshold, the bracket rate applies to the full market value.
Houses face different thresholds: 0.8% on market value from $5-15 million, 1.05% on $15-25 million, 1.3% above $25 million.
Phase 2 begins July 1, 2028, with condos and co-ops moving toward a sales-based market value system and the lower house rate structure.
How do I find my DOF market value?
Your DOF market value appears on the annual Notice of Property Value mailed each January. Look for the 'Market Value' line, not the 'Assessed Value' used for regular property taxes.
The July 2026 Supplemental Market Value Roll contains updated figures for surcharge calculations. DOF mailed non-primary residence notices by August 30, 2026, to owners whose properties exceed the thresholds.
Owners have until September 18, 2026, to file exemption applications if their property serves as a primary residence or qualifies for another exemption.
What should I do if I calculated wrong?
Check your DOF market value against the correct thresholds immediately. If you're above $1 million market value for a condo or co-op, or $5 million for a house, you may owe the surcharge.
First payments come due January 1, 2027. The exemption deadline is September 18, 2026, for all property types.
Consider whether your unit qualifies as a primary residence for you or immediate family, or houses a 12-month arm's-length tenant. These are the main exemptions from surcharge liability.
Frequently asked questions
Is my NYC apartment subject to the pied-à-terre tax based on assessed value or market value?
The NYC pied-à-terre surcharge applies to DOF market value, not assessed value. For condos and co-ops, assessed value equals 45% of DOF market value, so owners who calculate using assessed value understate their actual surcharge by more than half.
How much is the pied-à-terre tax on a $5 million condo?
A condo with $5 million DOF market value falls in the 5.25% bracket for fiscal years 2027-2028, resulting in an annual surcharge of $262,500. The rates are 4% on $1-3 million, 5.25% on $3-5 million, and 6.5% above $5 million market value.
Does the pied-à-terre tax calculation change if I use assessed value instead of market value?
Yes, using assessed value instead of market value dramatically understates the surcharge amount. For a $5 million market value condo, the mistake results in calculating $118,125 annually instead of the correct $262,500, creating an annual understatement of $144,375.