Exposure Numbers vs. Empty Units
Roughly 24,000 New York City residential units would be exposed to the new pied-à-terre tax if they are non-primary residences, according to Conquest's analysis of DOF's July 2026 Supplemental Market Value Roll. But the city's official vacancy rate tells a different story about truly empty apartments.
The 2023 New York City Housing and Vacancy Survey found a net rental vacancy rate of just 1.41%, which HPD called 'a historic low' that triggered concern over extreme market tightness. The number of homes 'vacant but not available for rent' decreased substantially—dropping 35% in the last 2 years as more vacant homes were rented, according to HPD's press release.
The gap between these figures reflects a basic misunderstanding about what the pied-à-terre tax actually targets. Units above the valuation thresholds are not necessarily empty—most are primary residences of their owners and would owe no surcharge under the law.
Where the Tax Hits Hardest
Manhattan dominates the exposure count with 16,709 condos and co-ops above the $1 million market value threshold. These units would face an average surcharge of $68,559 if they are non-primary residences, based on the 4% to 6.5% rates applied to DOF market values.
The highest concentrations appear in Midtown West's 10019 zip code with 975 exposed units, and Tribeca's 10013 with 1,751 units. But even in these luxury markets, the majority of expensive units serve as owners' primary homes.
Brooklyn shows 3,311 houses above the $5 million threshold for single-family properties, with an average potential surcharge of $52,630. The outer boroughs account for small slices: 77 houses in the Bronx, 35 in Queens, and 23 on Staten Island cross the house thresholds.
The Primary Residence Reality
The pied-à-terre tax applies only when covered property 'does not serve as the owner's primary residence', according to law firm analyses of the statute. Properties occupied by immediate family members as primary residences are also exempt, along with units under bona fide year-long leases.
DOF mailed non-primary residence notices by August 30, 2026, with an exemption application deadline extended to October 6, 2026. Owners have 30 days from a notice's transmission date to appeal their non-primary designation.
The Comptroller projected roughly $500 million in annual revenue from the tax, but that assumes a significant portion of high-value units are actually non-primary residences. The exposure figures show the maximum possible universe—not what the city will collect.
Frequently asked questions
Is my apartment subject to NYC's pied-à-terre tax if I live in it as my primary residence?
No, the pied-à-terre tax applies only when covered property does not serve as the owner's primary residence. Properties occupied by immediate family members as primary residences are also exempt, along with units under bona fide year-long leases.
How much is the tax on Manhattan condos and co-ops above $1 million?
Manhattan condos and co-ops above the $1 million market value threshold would face an average surcharge of $68,559 if they are non-primary residences. The tax uses rates of 4% to 6.5% applied to DOF market values.
Does the 24,000 unit exposure number mean there are that many empty apartments in NYC?
No, the 24,000 units exposed to the tax are not necessarily empty—most are primary residences of their owners and would owe no surcharge under the law. The city's official vacancy rate is just 1.41%, and vacant units not available for rent dropped 35% in the last 2 years.
Sources
- New York City's Vacancy Rate Reaches Historic Low of 1.4 ...
- Microsoft Word - 2023-NYCHVS-Selected-Initial-Findings-ONLINE
- [PDF] Accurately Assessing and Effectively Addressing Vacancies in ...
- New York State Enacts Pied-à-Terre Tax on Expensive ...
- NYC Pied-à-Terre Tax Passed: What the 2026 Law Does ...