Do I owe the pied-à-terre tax even if I never received a notice?
Yes. The surcharge applies to covered properties based on their value and non-primary status under state law, not on whether the Department of Finance mailed you a notice.
Conquest's analysis of DOF's July 2026 Supplemental Market Value Roll shows roughly 24,000 units citywide would owe the surcharge if they are non-primary residences. Most owners of these properties are primary residents who owe nothing, but second-home owners above the thresholds face the tax whether or not they received DOF's 'You may be subject to...' letter.
The surcharge targets condos and co-ops with DOF market values above $1 million and houses above $5 million that are not the owner's primary residence. Professional advisors warn that liability flows from the statute's definitions, not from DOF's outreach campaign.
What are the current rates and thresholds?
For condos and co-ops, the surcharge applies flat rates to the full DOF market value once it crosses $1 million. Properties valued $1 million to $3 million pay 4% of the full market value. The $3 million to $5 million band pays 5.25%. Properties above $5 million pay 6.5%.
Houses face lower rates but higher thresholds. Properties valued $5 million to $15 million pay 0.8% of the full market value. The $15 million to $25 million band pays 1.05%. Houses above $25 million pay 1.3%.
In Manhattan, roughly 17,000 condos and co-ops fall above the threshold, with an average surcharge of $68,559 if they are non-primary residences. Another 3,400 Manhattan houses would face an average surcharge of $105,610.
When is the exemption application deadline?
October 6, 2026. This deadline applies to all property owners who received DOF notices, regardless of the original dates on those letters.
DOF initially set deadlines of August 21 for houses and condos and August 24 for co-ops. Mayor Mamdani and DOF Commissioner Lee extended the deadline first to September 18, then again to October 6.
The extension covers everyone who received a DOF notice. Missing this deadline can result in owing the surcharge even if you would otherwise qualify for an exemption as a primary resident or qualifying tenant.
How do I know if my property is above the threshold?
Check the 'Market Value' line on your most recent Notice of Property Value from DOF. This is the figure used for the surcharge calculation, not the assessed value that determines your regular property tax.
For condos and co-ops, the assessed value shown on tax bills is typically 45% of market value and is not the surcharge base. The surcharge uses the full DOF market value.
Properties just below the threshold face exposure if values rise. Conquest's analysis shows 4,400 condo and co-op units are within $100,000 of the $1 million threshold, with another 6,000 units within $200,000.
What exemptions are available?
Primary residence exemption covers properties that serve as the owner's main home. Immediate family members using the property as their primary residence also qualify.
Qualifying rental exemption applies when the property is rented under a bona fide arm's-length lease of at least one year to a natural person tenant.
Entity ownership receives majority-interest look-through treatment for exemption purposes. DOF must be informed of exemption claims with supporting documentation by October 6 to avoid the surcharge for fiscal year 2027.
What happens if I miss the deadline?
Properties that miss the October 6 exemption deadline face the surcharge for fiscal year 2027 even if they would otherwise qualify for exemption. The first payment comes due January 1, 2027.
Owners get 30 days from a notice's transmission date to appeal non-primary status determinations. The surcharge cannot be offset by other property tax abatements or exemptions.
The tax runs through June 30, 2031, when the authorizing statute sunsets unless renewed by the state legislature.
How can I check my property's exposure?
Use Conquest's free DOF market value and surcharge calculator to determine your property's potential liability. The tool uses current DOF market values to calculate exact surcharge amounts under the Phase 1 rate structure.
The calculator shows whether your property falls above the thresholds and what the annual surcharge would be if it qualifies as a non-primary residence. Property owners can then file exemption applications proactively before the October 6 deadline.
Frequently asked questions
Do I owe the pied-à-terre tax if I never received a notice from NYC?
Yes, the surcharge applies to covered properties based on their value and non-primary status under state law, not on whether the Department of Finance mailed you a notice. Professional advisors warn that liability flows from the statute's definitions, not from DOF's outreach campaign.
How much is the pied-à-terre tax on my condo or co-op?
For condos and co-ops above $1 million in DOF market value, properties valued $1 million to $3 million pay 4% of the full market value, the $3 million to $5 million band pays 5.25%, and properties above $5 million pay 6.5%. The surcharge uses the full DOF market value, not the assessed value shown on tax bills.
When is the deadline to apply for the primary residence exemption?
The exemption application deadline is October 6, 2026, for all property owners who received DOF notices. Missing this deadline can result in owing the surcharge even if you would otherwise qualify for an exemption as a primary resident or qualifying tenant.