NYC's Annual Surcharge Dwarfs Global Competitors
New York City's pied-à-terre tax, which took effect July 1, 2026, imposes annual surcharges of 4% to 6.5% on condos and co-ops valued above $1 million when used as second homes.
That puts a $5 million Manhattan apartment owner on the hook for $325,000 per year in surcharges alone. By contrast, London charges a one-time 3% stamp duty surcharge on second-home purchases, Paris levies a modest annual tax capped at roughly $2,000, and Singapore imposes a 60% upfront buyer's stamp duty but no recurring fees.
The contrast reflects New York's shift toward an ongoing revenue model rather than the transaction-based or minimal recurring charges favored elsewhere. For high-value properties, NYC now ranks among the world's most expensive cities to maintain an empty or rarely used residence on a purely statutory basis.
London's One-Time Stamp Duty Surcharge
The United Kingdom imposes a 3% additional dwelling surcharge on second-home purchases through its Stamp Duty Land Tax system. The charge applies once at purchase and carries no annual component.
A $5 million London property would trigger roughly $150,000 in additional stamp duty. Non-UK residents face an extra 2% surcharge, bringing the total one-time penalty to 5% of purchase price.
Unlike New York's market-value-based annual calculation, London's charges are fixed at the transaction date. An owner who bought a £4 million flat in 2020 pays no additional fees regardless of current market appreciation.
Paris Caps Annual Second-Home Taxes
France levies a taxe sur les logements vacants on vacant properties in high-demand areas including Paris, but the amounts remain modest by international standards.
The annual charge equals 17% of theoretical rental value in the first year, rising to 34% in subsequent years. For a typical high-end Paris apartment, this translates to roughly €1,500 to €2,000 annually.
Paris also imposes higher property tax rates on second homes, but the combined burden rarely exceeds €3,000 per year even for luxury properties. The city prioritizes occupancy incentives over revenue generation.
Singapore's Upfront Buyer's Stamp Duty
Singapore charges foreign buyers a 60% Additional Buyer's Stamp Duty on residential purchases, among the world's highest transaction-based penalties for non-resident property ownership.
A $5 million Singapore condominium would trigger $3 million in upfront stamp duty for a foreign buyer. However, Singapore imposes no annual surcharges or recurring fees beyond standard property taxes.
The city-state's model prioritizes market cooling through purchase barriers rather than ongoing ownership costs. Once acquired, holding costs remain relatively predictable.
New York's Recurring Revenue Model
NYC's approach differs by targeting annual revenue rather than transaction deterrence. The surcharge applies to DOF market value, creating exposure that grows with property appreciation.
Conquest's analysis of DOF's July 2026 Supplemental Market Value Roll shows roughly 24,000 units citywide would owe the surcharge if used as non-primary residences. Manhattan condos and co-ops account for about 16,700 of those units, with average potential surcharges of $68,559.
The tax sunsets June 30, 2031, but Comptroller projections of roughly $500 million in annual revenue suggest strong political incentives for extension. Owners received DOF notices through August 2026, with exemption applications due September 18, 2026.
Property owners can check their DOF market value and calculate potential surcharge exposure using our free pied-à-terre tax calculator.
Frequently asked questions
Is my apartment subject to NYC's pied-à-terre tax?
NYC's pied-à-terre tax applies to condos and co-ops valued above $1 million when used as second homes, with annual surcharges of 4% to 6.5%. The tax took effect July 1, 2026, and roughly 24,000 units citywide would owe the surcharge if used as non-primary residences.
How much is the tax on a $5 million Manhattan apartment?
A $5 million Manhattan apartment owner would pay $325,000 per year in surcharges alone under NYC's pied-à-terre tax. The surcharge applies to DOF market value, creating exposure that grows with property appreciation.
Does the NYC pied-à-terre tax expire?
The tax sunsets June 30, 2031, but Comptroller projections of roughly $500 million in annual revenue suggest strong political incentives for extension. Owners received DOF notices through August 2026, with exemption applications due September 18, 2026.