What the Mamdani Pied-à-Terre Tax Actually Does
New York's pied-à-terre surcharge will cost owners of a $2 million Manhattan condo roughly $80,000 annually if the unit serves as a second home rather than someone's primary residence.
The tax — widely called the Mamdani pied-à-terre tax after Mayor Zohran Mamdani — is a state-law surcharge on high-value, non-primary residences in New York City. Signed May 28 2026 and effective July 1 2026, it applies annual rates of 4% to 6.5% on condos and co-ops valued at $1 million or more, and 0.8% to 1.3% on houses worth $5 million and up. The law sunsets June 30 2031.
Conquest's analysis of DOF's July 2026 Supplemental Market Value Roll shows roughly 24,000 residential units citywide would owe the surcharge if used as non-primary residences. Most are primary homes and owe nothing.
Who Owes the Surcharge
The surcharge targets second homes and largely unused pieds-à-terre, not primary residences. You owe the tax if you own a NYC residential property above the value thresholds and the property is not used as a primary residence by the owner, a tenant, or an immediate family member.
Manhattan dominates the exposure. Conquest's analysis shows 16,709 Manhattan condos and co-ops fall above the $1 million threshold, with an average surcharge of $68,559. Another 3,356 Manhattan houses exceed the $5 million mark, averaging $105,610 annually.
Brooklyn follows with 3,311 houses and 649 condos exposed to the tax. The outer boroughs show minimal exposure — just 77 houses in the Bronx and 35 in Queens clear their respective thresholds.
How the Rates Work
The surcharge applies to the full DOF market value once a property crosses the threshold — not just the excess above it. For condos and co-ops, the rates are 4% on properties valued $1 million to $3 million, 5.25% from $3 million to $5 million, and 6.5% above $5 million.
Houses face lower rates but higher thresholds: 0.8% on $5 million to $15 million properties, 1.05% from $15 million to $25 million, and 1.3% above $25 million.
The calculation uses DOF market value, not assessed value. For condos and co-ops, assessed value typically runs about 45% of market value and applies only to regular property tax calculations.
Starting July 1 2028, the law enters a second phase where condo and co-op valuations shift toward the lower house-rate schedule based on comparable sales data.
Exemptions and Deadlines
Primary residences are exempt, as are properties occupied by tenants or immediate family members of the owner. The law defines immediate family as spouse, child, sibling, parent, grandparent, or grandchild.
DOF mailed 'You may be subject to...' notices to potentially affected owners through late August 2026. The exemption application deadline is October 6 2026, extended twice from the original August dates by Mayor Mamdani and DOF Commissioner Lee.
Non-primary status is determined as of January 5 preceding the fiscal year, not by how much time an owner spends in the unit during the year. First payments are due January 1 2027.
Owners have 30 days from a notice's transmission date to appeal their property's non-primary designation.
Where the Highest Exposure Sits
Midtown West leads condo exposure with 975 units in the 10019 zip code averaging $86,862 in annual surcharge. SoHo follows with 932 units in 10012, also averaging roughly $86,000.
Tribeca's 10013 zip code shows the highest unit count at 1,751 condos and co-ops above the threshold, though the average surcharge drops to $74,077. The area around Gramercy and Union Square captures 1,181 units in 10011.
Most exposed properties — 16,452 units — fall in the lowest 4% bracket for properties valued $1 million to $3 million. Just 197 units citywide would pay the top 6.5% rate on properties worth $5 million or more.
Another 10,344 condo and co-op units sit within $200,000 of the $1 million threshold, suggesting the tax could affect significantly more properties if values rise or the threshold remains fixed.
Frequently asked questions
Is my apartment subject to the NYC pied-à-terre tax if I live there part-time?
You owe the tax if you own a NYC residential property above the value thresholds and the property is not used as a primary residence by the owner, a tenant, or an immediate family member. Non-primary status is determined as of January 5 preceding the fiscal year, not by how much time an owner spends in the unit during the year.
How much is the pied-à-terre tax on a $2 million Manhattan condo?
The tax will cost owners of a $2 million Manhattan condo roughly $80,000 annually if the unit serves as a second home rather than someone's primary residence. For condos and co-ops valued $1 million to $3 million, the rate is 4% applied to the full DOF market value.
Does the pied-à-terre tax apply to my primary residence in NYC?
Primary residences are exempt from the pied-à-terre surcharge. The tax targets second homes and largely unused pieds-à-terre, not primary residences, and also exempts properties occupied by tenants or immediate family members of the owner.
Sources
- Judge orders pause of Mamdani’s pied-à-terre tax rollout after homeowners sue. NYC says it will appeal ruling | CNN
- NYC homeowners sue Mamdani over bungled pied-à-terre tax rollout
- Lawsuit challenges Mamdani's new NYC 'pied-à-terre tax'
- Mamdani's pied-à-terre tax unpaused after surprise ruling
- NYC judge blocks rollout of Mamdani pied-à-terre tax in temporary restraining order